1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
r-ruslan [8.4K]
3 years ago
8

You own a portfolio that has a total value of $145,000 and a beta of 1.31. You have another $58,000 to invest and you would like

the beta of your portfolio to decrease to 1.19. What does the beta of the new investment have to be in order to accomplish this
Business
1 answer:
oee [108]3 years ago
8 0

Answer: 0.89

Explanation:

The total portfolio beta is a weighted average of the constituent security betas.

145,000 + 58,000 = $203,000

The total portfolio beta of 203,000 should have a beta of 1.19.

Proportion of New investment = 58,000/203,000

= 28.57%

Proportion of old portfolio = 145,000/203,000

= 71.43%

(0.7143 * 1.31) + (0.2857 * x) = 1.19

0.9357 + 0.2857x = 1.19

0.2857x = ‭0.2543‬

x= 0.89

You might be interested in
A problem is listed below. Identify its type. A certain company has purchased new swivel chairs for its employees. The company m
DochEvi [55]

Answer:

it is 12.8%

Explanation:

cause it is

8 0
3 years ago
3. Which of the following is an example of a goodwill message?
Svetllana [295]

Answer:. focus entirely on the candidate with details such as examples of accomplishments, ...

Explanation:

8 0
3 years ago
A certificate of deposit allows deposits and withdrawals at any time without a financial penalty.
iogann1982 [59]

Although there is no question here, I am assuming that this is a True/False question because it is a False statement.

A certificate of deposit is an investment with a fixed interest rate for a fixed period of time. There are nearly always penalties for early withdrawal.

3 0
3 years ago
On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, Whi
Masteriza [31]

Answer:

A

Explanation:

In this question, we are asked at what value should the land be recorded in White Repair services records.

Technically, the value of land is to be recorded as purchase price plus improvements.

Generally, what we mean by improvements include such fees such as attorney fees. Looking at the question, we cannot find any of the entries that speaks about payment yo an attorney or any general land issue. This means that we only record the value of the land as purchase price only.

Looking at the question, the purchase price is the accepted seller’s counter offer. This value is $115,000. Hence, it is the value at which the land would be recorded in White repair service records

8 0
3 years ago
A builder only has a few properties available in a development. He feels that it is no longer necessary to have his onsite sales
USPshnik [31]

Answer:

An open listing

Explanation:

In real estate an open listing is one in which the owner of a property contracts more than one agent to sell the property. The agent with the winning bid will eventually sell the property.

The opposite of this is the exclusive listing where the property owner only engages one agent to sell the property.

In the given scenario the builder feels that it is no longer necessary to have his onsite sales agent market these properties and decides to list the properties with a local brokerage firm. Thereby allowing all of the local firms to market these properties.

This is an open listing

5 0
3 years ago
Other questions:
  • Selling, general, and administrative expenses were $80,000; net sales were $390,000; interest expense was $16,000; research and
    15·1 answer
  • Suppose that you only have liability and comprehensive car insurance and you allow your roommate (who doesn't have car insurance
    9·1 answer
  • A company has a new concept for a lightweight electric scooter that can be easily folded and taken with you inside a building or
    8·2 answers
  • Michele's job as an accounting assistant was recently modified to include reconciling bank accounts and making deposits, two tas
    5·1 answer
  • Portions of the financial statements for Peach Computer are provided below.
    6·1 answer
  • 1. The textbook describes how Political, Economic, and Cultural factors can influence international logistics. In terms of compl
    5·1 answer
  • Under cash-basis accounting, if a company provides services to a customer in the current year but does not collect cash until th
    7·1 answer
  • A deposit would appear as a debit on your bank statement. <br><br> True or False
    10·2 answers
  • What can a cover letter explain that a résumé cannot?
    9·2 answers
  • Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freig
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!