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Alex73 [517]
2 years ago
14

Stock A has a beta of 0.8 and Stock B has a beta of 1.2. 50% of Portfolio P is invested in Stock A and 50% is invested in Stock

B. If the market risk premium (rm-rrf) were to increase but the risk-free rate (rRF) remained constant, which of the following would occur? a. the required return will decrease by the same amount for both Stock A and Stock B. b. the required return will increase for both stocks but the increase will be treated for Stock B than for Stock A. c. The required return will increase for Stock A but will decrease for Stock B. d. The required return will increase for Stock B but will decrease for Stock A. e. The required return on Portfolio P will remain unchanged.
Business
1 answer:
xxMikexx [17]2 years ago
4 0

Answer:

B. The required return will increase for both stocks but the increase will be treated for Stock B than for Stock A.

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To indicate grouping in access, select _____ as the entry in the total row for the field to be used for grouping
Vinvika [58]
<span>Select the Group By function. This makes it so that records of the same group are placed onto a single record with a column that is added and holds a nested table of the remaining columns. This function also returns a table with records grouped together based on the values in one or more columns.</span>
3 0
3 years ago
Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
Artyom0805 [142]

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

3 0
3 years ago
There are three main reasons why monetary policy doesn’t always work. Match each reason with its explanation.
evablogger [386]

Answer:

3. People don’t act as the Fed hopes.

a. The Fed can create conditions meant to encourage people to, for example, borrow more money. But if people are fearful of going into debt when their employment situation is uncertain, they may not respond to the Fed’s incentives.

  • people make heir personal decisions based on what they expect to happen in heir future

1. The long run is different from the short run.

b. Although an expanded money supply can briefly stimulate economic growth, eventually the economy will return to the same level of productivity, just at higher prices for goods and wages.

  • equilibrium is the key word regarding the long run

2. People adjust their expectations.

c. Fed actions are most effective when they come as a surprise. When people have figured out in advance what the Fed is going to do, the Fed’s actions don’t have as much impact.

  • People's expectations can result in the failure of economic policies. For example, if households expect higher inflation, they might take loans or accelerate their purchases.

8 0
2 years ago
A cooling tower a. is controlled by a thermostat. b. cools water as it flows through pipes. c. cools water through insulation. d
vladimir2022 [97]
Your answer should be c because inside the tower its covered by insulation walls to prevent heat.
5 0
3 years ago
Fred is willing to pay $5 for his first slice of pizza and $4 for his second slice of pizza. If the price is $3, and Joe buys tw
lesya [120]

Answer:

D) $3

Explanation:

Consumer Surplus refers to the difference between the actual price paid by a consumer and the price the consumer was willing to pay. Surplus arises in cases wherein the price consumer was willing to pay exceeds the price he actually paid.

In the given case, the consumer was willing to pay a total of $9 i.e ($5 + $4) for 2 units of pizza. He actually ended up paying $6 i.e ($3 × 2 slices).

Thus, his total consumer surplus can be calculated as $9 - $6 = $3  

8 0
2 years ago
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