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
lakkis [162]
3 years ago
7

You invest $650 in security A with a beta of 1.2 and $450 in security B with a beta of 0.7. The beta of this portfolio is ______

___.
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

Beta of this portfolio = 0.9953

Explanation:

Given:

Investment in security A = $650 beta 1.2

Investment in security B = $450 beta 0.7

Find:

Beta of this portfolio

Computation:

Beta of this portfolio = [650 / (650+450)]1.2 + [450 / (650+450)]0.7

Beta of this portfolio = [650 / (1,100)]1.2 + [450 / (1,100)]0.7

Beta of this portfolio = 0.7090 + 0.2863

Beta of this portfolio = 0.9953

You might be interested in
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the por
Deffense [45]

Answer:

33.33%

Explanation:

Let weight of T-bill be x, therefore weight of stock will be 1-x

Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills

1 = (1-x)*1.5 + x*0

1 = 1.5 - 1.5x

x = 0.5/1.5

x = 0.3333

x = 33.33%

Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.

5 0
3 years ago
Why would a small business conduct less marketing research than a larger, established firm?
labwork [276]
The reason is <span>Marketing research is expensive.
</span>The established firm usually has a large amount of capital at its disposal, so they could do market research in order to strengthen their position.
Small business on the other hand, usually struggle to even barely continuing their operation for the next month.
8 0
3 years ago
Read 2 more answers
Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pay
Vikki [24]

Answer:

The Ariana's accounting profit for the year was $6,000

Explanation:  

Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.

Where,

Total revenues includes sales revenues

And total cost includes monetary cost, etc.

So,

Accounting profit = Total revenues - Total cost

where

Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000

Monetary cost = $9,000

So,

Accounting profit = $15000 - $9000 = $6,000

Hence, the Ariana's accounting profit for the year was $6,000

7 0
3 years ago
The fasb's conceptual framework classifies gains and losses based on whether they are related to an entity's major ongoing or ce
andre [41]

These gains and losses may be described or classified as either operating or nonoperating, depending on their relation to an entity's major ongoing or central operations.

<h3>What does Conceptual Framework say about profit and loss?</h3>
  • The Exposure Draft proposed that, because profit or loss is the primary source of information about an entity's financial performance for the period, the framework should include a presumption that all income and all expenses will be included in that statement.
  • The FASB's conceptual framework classifies gains and losses based on whether they are related to an entity's major ongoing or central operations.
  • Nonoperating are “other” gains and losses.

To learn more about Fasb gain and loss, refer

to brainly.com/question/24448358

#SPJ4

7 0
1 year ago
Favorita candy's stock is expected to earn $2.40 per share this year. its p/e ratio is 18. what is the stock price?
MatroZZZ [7]
The formula to calculate p/e ratio is: price/earnings.

So, the price of the stock would be

p/e ratio = price/earnings

18 = price / 2.4

Price= 2.4 x 18

Price = 43.2 


3 0
3 years ago
Other questions:
  • Peter Ittig's department store, Ittig Brothers, is Amherst's largest independent clothier. The store receives an average of 8 re
    15·1 answer
  • Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by
    11·1 answer
  • When you encounter an organization where employees are quite intense, focused, and determined to win, you have encountered an or
    12·1 answer
  • A sales receipt is Group of answer choices used when recording a sale on account used to track cash receipts received from a sal
    12·2 answers
  • When firms purchase new capital we call this _____
    5·2 answers
  • Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of f
    12·1 answer
  • Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2018.
    14·1 answer
  • Fabtabtix, a designer clothing brand, has been selling clothes in the country of Grolania for over 30 years. With more number of
    10·1 answer
  • French mining engineer Henri Fayol defined management as a process involving which of the following?
    10·2 answers
  • If ece's stock is currently trading at $24.00 and ece has 25 million shares outstanding, then ece's market-to-book ratio is clos
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!