Answer:
Student responses will vary, but should include: A young investor has years of earning power and can take greater risks because he/she has time to make-up for losses. An older investor needs more security and current income from their investments because they are using it to retire on or they need it to continually grow so that they can retire.
Explanation:
B
Explanation:
An hourly wage is unfixed and can change depending on your ability but a salary doesn't change and ensures a continuous income
the answer is true because of the competition
Part of question attached
Answer and Explanation:
Please find answer and explanation attached
Answer:
1.29375
Explanation:
Data provided in the question:
Total investment = $10,000
Number of different common stock = 8
Portfolio's beta = 1.25
Beta of a stock sold = 1.00
Beta of the replacement stock = 1.35
Now,
Change in portfolio beta = weight × (change in security beta)
also,
change in security beta
= Beta of the replacement stock - Beta of a stock sold
= 1.35 - 1
= 0.35
and,
Weight = Beta ÷ Number of different common stock
= 1 ÷ 8 = 0.125
Therefore,
Change in portfolio beta = 0.125 × 0.35
= 0.04375
thus,
New portfolio beta = Portfolio's beta + Change in portfolio beta
= 1.25 + 0.04375
= 1.29375
