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Alex
4 years ago
14

Your portfolio has a beta of 1.28. The portfolio consists of 35 percent U.S. Treasury bills, 31 percent Stock A, and 34 percent

Stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of Stock B?
Business
1 answer:
Zarrin [17]4 years ago
6 0

Answer:

2.85

Explanation:

U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:

1.28=0.35\beta_{T}+0.31\beta_{A}+0.34\beta_{B}\\1.28 = 0.35*0+0.31*1+0.34\beta_{B}\\\beta_{B}=\frac{1.28-0.31}{0.34}\\ \beta_{B}=2.85

The beta of Stock B is 2.85.

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Suppose one of your friends offered the following argument: Market for Widgets A rightward shift in demand will cause an increas
grigory [225]

Answer:

C. No, the increase in price will not cause a shift of the supply curve

<u><em>Attached graph</em></u>

Explanation:

The demand curve will move to the right, and the equilibrium price adn quantity will increase as a result of this event. But, the supply curve will not move the new equilibrium will be along the original supply line.

The supply curve will move affectd by technology, input prices, taxation, interest rates changes, the price is not what determinates the supply curve. The price is the result of how supply and demand interact.

4 0
3 years ago
Consignment goods are:
Nady [450]

Answer:

Goods shipped by the owner to the consignee who sells the goods for the owner.

Explanation:

Consignment goods -

It refers to the goods holded by the consignee which is responsible for selling the goods , is referred to as consignment goods .

The consignee receives certain amount of money as commision for the goods .

This method is used by many manufacturing firm , to have a smooth and proper distribution of goods and services .

Hence , from the given question ,

The correct option is first one .

8 0
3 years ago
A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project ha
givi [52]

Answer:

$163,100

Explanation:

First find the present value of cashflows at year 1 and 2

<u>PV of  $82,400;</u>

PV = FV/(1+r)^n

PV = 82,400/(1.1275)^1

PV = $73082.0399

<u>PV of  $148,600;</u>

PV = FV/(1+r)^n

PV = 148,600 /(1.1275)^2

PV = $116,892.2473

From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;

PV of cashflow yr3 = $303,764.34 -$73082.0399 -$116,892.2473

PV of cashflow yr3 = $113,790.053

Next, calculate year 3's cashflow;

Year 3 cashflow = 113790.053(1.1275)^3

Year 3 cashflow = $163,099.996

Expected cashflow in third year is approximately $163,100

3 0
3 years ago
The formal written document identifying the criminal charge, the date and place where the crime occurred, and the circumstances
g100num [7]
The complaint<span>
Hope this helped</span>
3 0
4 years ago
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-d
djverab [1.8K]

Answer:

The spending variance for food and supplies in March would be closest to $122 U

Explanation:

In order to calculate the spending variance for food and supplies in March we would have to use the following formula:

Spending variance = Budgeted cost - Actual cost

Budgeted facility expenses for actual tenant days = $7,500 + (4780*$4.10) Budgeted facility expenses for actual tenant days =$27,098

Actual facility expenses = $27,220

Therefore, Spending variance = $27,098 - $27,220 = $122 U

Spending variance = $122 U

The spending variance for food and supplies in March would be closest to $122 U

4 0
4 years ago
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