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Mars2501 [29]
3 years ago
11

You want to construct a portfolio containing equal amounts of U.S. Treasury bills and two stocks. If the beta of the first stock

is 1.23 and the beta of the portfolio is 1.0, what does the beta of the second stock have to be
Business
1 answer:
Tasya [4]3 years ago
8 0

Answer:

the beta of the second stock is 1.77

Explanation:

The beta of the second stock is shown below;

Investment in each = (1 ÷ 3)

Now as we know that

Portfolio beta = Respective investments × Respective weights

1 = (1 ÷ 3 × 1.23) + (1 ÷ 3 × beta of the second stock) + (1 ÷ 3 × 0)

We assume the Beta of risk-free assets would be zero

1 = 0.41 + (1 ÷ 3 × beta of the second stock)

The beta of the second stock is

= (1 - 0.41) × 3

= 1.77

Hence, the beta of the second stock is 1.77

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Answer:

false

Explanation:

Internal information is the information developed from activities that occur within the organization.

Definition

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3 years ago
According to behavioral​ economics, consumers A. always behave rationally because they take into account monetary costs and nonm
FromTheMoon [43]

Answer:

E. do not always behave rationally because they are overly optimistic about their future behavior.

Explanation:

Behavioral economics is the study of irrational economic decisions from people's behavior.

Behavioral economics includes the people's emotional framework to make choices beyond the rational choice theory, which states that a rational person is not moved by emotions and social factors to choose the option that maximizes their satisfaction.

To be overly optimistic about your future behavior is biased from social factors and it is a behavior that could be understood from the human emotional framework.

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3 years ago
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Unemployment and Labor Force Participation: Work It Out 1 of 3 Suppose the island nation of Freelandia is composed entirely of t
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Answer:

200

Explanation:

The labor force in an economy is composed of all adults able-bodied individuals who are employed or actively seeking employment. Employed people are those engaged in economic or income-generating activities.  Unemployed are jobless individuals who are actively seeking work.

In Freelandia, labor force participation will be composed of the employed and the unemployed people.  As per the definition of the labor force, children will not be included as they are not adults. Students and retired people are not seeking employment; hence should not be in the labor force. Therefore, the labor force will be 190 plus  10, which is 200.

4 0
3 years ago
The unique symbols, personalities, and philosophies that support all corporate activities including strategic planning and marke
anzhelika [568]

Answer:

a) Corporate identify

Explanation:

Corporate identity is related to a set of duties of an organization that differs from others. It's the corporate culture, values, goals, plans and strategies, it's the raison d'être of any company, regardless of its size or area of ​​expertise. Through corporate identity it is possible for stakeholders to identify the company, recognize its posture and values ​​in the market. It is important that the corporate identity is well established and spread by all sectors and employees, because through it, the company proves its relevance, reputation and differentiation in the market.

6 0
3 years ago
Which of the following is an example of structural control? a.Monitoring the administrative ratio to make sure staff expenses do
nirvana33 [79]

Answer: (A) Monitoring the administrative ratio to make sure staff expenses do not become excessive

Explanation:

 The structural control is one of the concept that helps in monitoring the main building block in an organizational structure and managing all the functions such as design of an organization, performance, goals and the requirement within an organizational structure.

According to the question, the structural control is one of the process of monitoring the main administrative ratio so that the staff expenses are not becoming more excessive and serving only on the basis of important purpose and requirement.  

 Therefore, Option (A) is correct answer.    

6 0
3 years ago
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