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gulaghasi [49]
2 years ago
5

If a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%,

then:_____
a. Treasury bills are offering a 7% yield.
b. The portfolio beta is greater than 1.0.
c. The portfolio beta equals 1.67.
d. The investor's portfolio contains many defensive stocks.
Business
1 answer:
goblinko [34]2 years ago
7 0

Answer:

B

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Market beta is represented by 1. If a portfolio has a beta that is higher than 1, it means that it is more risky than the market portfolio and investors would demand a higher return than the market portfolio

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abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing act
scZoUnD [109]

Answer:

(a) Issued $50,000 par value common stock for cash = Financing Activities

b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 =  Non-cash Investing and Financing Activities

(d) Declared and paid a cash dividend of $18,000 = Financing Activities

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities

(f) Collected $16,000 from sale of goods = Operating Activities

Explanation:

The Cash flows related to raising of capital is known as Cash flow from Financing Activities.

The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.

The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.

7 0
3 years ago
I wanna see how quick ya'll answer. Tell me if your answer quickly only because of the points if not the points give me another
enyata [817]

Answer:

thanks for this

Explanation:

because the points <3

8 0
3 years ago
Read 2 more answers
ECONOMICS, PLEASE HELP.
Nina [5.8K]

Equilibrium is the point where supply meets demand. Look at the table and see where those two columns are the same.

For B. look at the chart and see at 1,50 rent (the first column) the demand is greater than supply or not. If demand is less than supply, there is a surplus. If demand is higher, there is a shortage.

This applies to question C as well. Look at the first column, find the rent, and see if there is more supply or more demand.


3 0
3 years ago
Which one of the following parties can sell shares of ABC stock in the primary market?-ABC company-Any corporation, other than t
horsena [70]

Answer:

ABC company

Explanation:

Basically there are two markets i.e primary market and the secondary market.  

The primary market is the market in which the initial public offer is taking place that means the new security is first offered to the public by the company whereas, in the secondary market, the broker or investor is involved while offering the securities.  

In the given situation, the ABC company itself is involved while selling the shares of ABC stock in the primary market

4 0
3 years ago
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $11,500 price, but financing
aksik [14]

Explanation:

I = Prt

I = (10000)(.11)(4) = $4400

Total Cost = Down Payment + Principal Borrowed + Interest

Total Cost = 2000 + 8000 + 4400

= $14,400

Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments

Monthly Payment = (10,000 + 4400) / 48

= $300

APR= (2 × n × I) / [P × (N + 1)]

APR = (2 × 12 × 4400) / [10,000 × (48+1)]

= 21.55%

3 0
3 years ago
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