The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.
Answer:
1) Expected return is 12.12%
2) Portfolio beta is 1.2932
Explanation:
1)
The expected return can be calculated by multiplying the return in a particular state of economy by the probability of that state occuring.
The expected return = (0.32 * -0.11) + 0.68 * 0.23
Expected return = 0.1212 or 12.12%
b)
The portfolio beta is the the systematic riskiness of the portfolio that is unavoidable. The portfolio beta is the weighted average of the individual stock betas that form up the portfolio.
Thus the portfolio beta will be,
Portfolio beta = 0.33 * 1.02 + 0.2 * 1.08 + 0.37 * 1.48 + 0.1 * 1.93
Portfolio beta = 1.2932
Currency I think. It's given in exchange for an item.
<span>When buying any item in most stores, you are charged sales tax. Retailers, even smaller businesses are charged taxes for running their business. Businesses are able to pass on part of the burden to their paying customers in way of sales tax. So when you see an item marked as 99 cents, you will be paying slightly more than a dollar in almost all cases.</span>
