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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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Answer:

multiple product order

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3 years ago
Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $58,523 on January 1, 2018. The market interest r
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Answer:

Please refer to the below for Journal entries

Explanation:

The journal entries are seen below

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Discount on bond payable A/c Cr $4,477

To bonds payable A/c Cr $63,000

(Being the issuance of bond that is recorded)

2. Interest expense A/c Dr $2,048

To discount payable A/c Cr $158

To cash A/c Cr $1,890

(Being the first interest payment that is recorded)

Note:

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4 0
3 years ago
Roberto and Maria Martinez have a new loan in the amount of $80,000. The interest rate is 10%. The monthly payments are $710, pr
OverLord2011 [107]

Answer:

$79,913

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Hence, the loan balance after two months is $79,913

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