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Rufina [12.5K]
3 years ago
14

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%

.
a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
b. Calculate the total variance for an increase of 2.62% in its residual standard deviation?

Business
1 answer:
denpristay [2]3 years ago
5 0

Answer:

a). 0.2664 or 26.6400%

b). 0.266406 or 26.6406%

Explanation:

calculation and full explanation is in the attached picture below

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Short Answer 7: If the government announced that they were going to reduce the income tax next year, financed by finding a large
GalinKa [24]

Answer:

The labor would increase

Explanation:

When the government decides to lower the income tax in the coming year, which is financed by the findings of a large as well as a previously unknown warehouse for real goods, then there would be an increase in the labor as the reduction in the income tax would cause more and more investment. And thus organizations and firms increase their efficiencies and create more and more output by increasing the labor.

7 0
2 years ago
At the beginning of November, Watson Industries has a cash balance of $3,461,000. They have expected cash receipts of $712,000 a
Ahat [919]

Answer:

$224,000

Explanation:

The computation of the borrowed cash amount is shown below:

= Cash balance + expected cash receipts - expected cash disbursements - minimum monthly balance

= $3,461,000 + $712,000 - $1,397,000 - $3,000,000

= $224,000

Simply we add the expected cash receipts and less the expected cash disbursements and minimum monthly balance to the cash balance so that accurate value can come.

4 0
3 years ago
Which sequence describes the long-run adjustment process in a competitive market when firms are experiencing short-run economic
dedylja [7]

Answer:

b. some firms exit, industry supply decreases, market price rises.

Explanation:

A perfect competitive industry is characterised by many buyers and sellers of homogenous goods and services. There are no barriers to entry or exit of firms.

If firms are making economic loss is the short run, in the long run, firms leave the industry. This leads to a fall in supply and prices rise as a result. In the long run, firms in a competitive industry earn zero economic profit.

I hope my answer helps you

7 0
3 years ago
ABC C.o just completed an IPO with an investment bank on a firm-commitment basis. The firm issues 3 million shares of common sto
Brut [27]

Answer: $150,000,000

Explanation:

Question is:

What were the total proceeds from the common stock sale?

Total proceeds refer to the total amount that the sale of the stock generated. This means that you should not account for the underwriting fees as of yet but just the amount that came in.

= Number of shares sold * price per share

= 3,000,000 * 30

= $150,000,000

3 0
3 years ago
Which of the following is NOT a strategy stores use to discourage shoplifting?
Crazy boy [7]
The answer is frequent sales:
This is because all the other answers would make the shop lifter feel discouraged as there is a lot of security, when more sales would most likely have no affect
4 0
3 years ago
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