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gulaghasi [49]
3 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]3 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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-Dominant- [34]

Answer:

Yes, it does, though one might question if the underlying process is really better.

Explanation:

Process capability index is a statistical measure which determine the output with specification limits, in the above case increasing the increasing the upper specification limit reduces the lower specification limit as it produces the ability of output.

4 0
3 years ago
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES
Strike441 [17]

Answer:

Net Income                              $

Income before income taxes 3,860

Income tax expense                <u>1,544</u>

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Explanation:

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3 years ago
Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio
gtnhenbr [62]

Answer:

$20,000

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5 0
3 years ago
how a teacher can use motivational strategies to control problem behavior in classroom give an example
noname [10]
<h3><u>Answer</u></h3>

The Earth’s mantle is made up of Tectonic plates that are forever moving as the Earth cools down. This happens over billions of years, and one of the most notable ones is around the Pacific rim where Earthquakes, (seismic activity) happens quite often

The Rift Valley in Ethiopia lies along the edge of the African Tectonic Plate, and continues down through parts of Somalia and into Kenya.

Just recently a rift opened up in Kenya, which seismologists seem to think is the pre-cursor of a major tectonic plate movement, splitting apart a part of Africa, which could include Ethiopia

Here are some strategies that can be used in the classroom to help motivate students:

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5 0
3 years ago
Convertible bonds:_________
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Answer:

c) Provide potential benefits to both the issuer and the investor.

Explanation:

Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.

They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.

They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.

5 0
3 years ago
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