All categories

3 years ago

Consider the following information for three stocks, A, B, and C that can be put into portfolios with the following allocations.

Business

1 answer:

astraxan [27]3 years ago

4 0

Answer:

Therefore, the Beta of Portfolio AC is 1.10

Explanation:

In order to calculate the Beta of Portfolio AC we would have to make the following calculation of the following formula according to the given data:

beta of Portfolio AC is given as=80%*1.0+20%*1.5

beta of Portfolio AC is given as=0.8+0.3

beta of Portfolio AC is given as=1.10

Therefore, the Beta of Portfolio AC is 1.10

You might be interested in

The minimum wage law ___________________ a) has a significant effect on the unemployment rate since a large part of the labor fo

Galina-37 [17]

Answer:

a) has a significant effect on the unemployment rate since a large part of the labor force earns the minimum wage.

Explanation:

The minimum wage law ensures that all employees have a minimum income to live with dignity. Although there is a big debate among economists, the liberal current suggests that the minimum wage law has a major impact on the unemployment rate, especially among the poorest. According to these economists, the minimum wage is instituted above the productivity level of most people, which causes companies to lose efficiency. If wages were fluctuating, according to market law, more workers would probably be hired for wages tied to their productivity. Therefore, among the options, the first seems to be the most correct.

3 0

3 years ago

Assume the firm has a tax rate of 22 percent. c-1.Calculate return on equity (ROE) under each of the three economic scenarios be

MakcuM [25]

Answer:

From the attached excel file, we have:

a-1. We have:

ROE under recession = 10.43%

ROE under normal = 13.21%

ROE under expansion = 14.92%

a-2. We have:

Percentage changes in ROE when the economy enters a recession = -21.00%

Percentage changes in ROE when the economy expands = 13.00%

b-1. We have:

ROE under recession = 15.63%

ROE under normal = 21.06%

ROE under expansion = 24.42%

b-2. We have:

Percentage changes in ROE when the economy enters a recession = -25.77%

Percentage changes in ROE when the economy expands = 15.95%

c-1. We have:

ROE under recession = 8.14%

ROE under normal = 10.30%

ROE under expansion = 11.64%

c-2. We have:

Percentage changes in ROE when the economy enters a recession = -21.00%

Percentage changes in ROE when the economy expands = 13.00%

c-3. We have:

ROE under recession = 12.19%

ROE under normal = 16.43%

ROE under expansion = 19.05%

c-4. We have:

Percentage changes in ROE when the economy enters a recession = -25.77%

Percentage changes in ROE when the economy expands = 15.95%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. Kindly see the attached pdf file for the complete question.

Also note: See the attached excel file for all the calculations required.

In the attached excel file, the following formula is used:

Percentage in ROE = ((ROE of Recession or Expansion - ROE of Normal) / ROE of Normal) * 100

Download xlsx

5 0

3 years ago

The process of transferring the debits and credits from the journal entries to the accounts is called a.journalizing b.sliding c

Rudiy27

Answer:

d. posting

Explanation:

There are various steps to prepare the financial statements. These are as follows:

1. Journalizing: It is a recording of business transaction with a narration in which the one account is debited and the other account is credited. It can be more transactions debited and credit that is depending upon the nature of the transaction.

2. Ledger posting: After recording the journal entries, the next step is to make the number of ledger i.e posting of the amount and the accounts to their respective ledger i.e sales ledger, purchase ledger, etc

3. Trial balance

4. Income statement

5. Statement of owners equity

6. Balance sheet

7. Cash flow statement

4 0

3 years ago

You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance

N76 [4]

Answer:

$46.43

Explanation:

Calculation for Below what stock price level would you get a margin call

First step is to calculate the Loan amount

Loan amount=(100 shares × $130 × 0.5

Loan amount= $6,500 × 0.5 = $3,250

Now let calculate Stock price level

0.30 = (100P $3,250)/100P

30 - P = 100P - $3,250

30-100P= - $3,250

-70P = -$3,250

P=$3,250/70

P = $46.43

Therefore Below what stock price level would you get a margin call will be $46.43

7 0

3 years ago

Please explain why you are a great candidate for Panera

Vsevolod [243]

Well, the smiles customers are greeted with at Panera help to give the brand a good name, and I have a welcoming smile. on top of that im very patient and reliable, great at being on time and helping as much as I can! I also am a big fan of bread and pasteries, so id be quick to know exactly wha folks are asking for at the register

4 0

3 years ago