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
Flauer [41]
2 years ago
12

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total

portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio
Business
1 answer:
andriy [413]2 years ago
3 0

Answer:

the beta be for the other stock in your portfolio is 1.73

Explanation:

The computation of the beta be for the other stock in your portfolio is shown below:

Given that

risk free asset contains the beta of 0

And,  

market beta = 1

Now  

1 = 1 ÷ 3 × 0 + 1 ÷ 3 × 1.27 + 1 ÷ 3 × beta

The beta of other stock = 1.73

hence, the beta be for the other stock in your portfolio is 1.73

Here we assume that one-third should be invested in all 3 things each

You might be interested in
Bonnie is writing a cover letter for a job application.She has written the introduction describing her strengths.However,she is
murzikaleks [220]

In the body of her letter I think she should start talking about her past experience with jobs and her experience with whatever jobs she's worked for before,

7 0
3 years ago
Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p
amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed  = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

5 0
3 years ago
The chief executive of a large telecommunications company wanted to restructure the organization so product leaders would have m
katen-ka-za [31]

This kind of resistance from the product leaders is an example of resistance due to breaking routines. Furthermore, there are more types of resistance to change in an organization's culture & structure.

 

EXPLANATION:

Here is the list of types of resistance to change in an organization’s culture and structure:

• Fear of Failure

Intimidating cultural and structural alterations on the employee can make them doubt their competences. This self-doubt decreases self-confidence and weakens personal development and growth. The workers may resist such alterations without bearing in mind the potential profits of the proposed alterations, as a consequence. The low output might be understood before the workers finally learn and adjust to life with the alterations.

• Loss of Status

Cultural and structural alterations that intimidate to change dominant positions or remove jobs commonly cause strong resistance. Restructuring and reorganization of corporate may include managerial jobs elimination. Middle managers will oppose restructuring and any other agenda that decreases their power and the status they already possess in the organization.

• Non-Reinforcing Reward System

People resist when they do not predict positive prizes for altering their work routines. Workers presume a positive development in their work to voluntarily accept the alteration. A worker is unlikely to help an alteration that is recognized as longer work hours and enlarged pressure to perform.

• Incongruent Group Dynamics

Groups grow and apply conformity to a series of norms that lead the members' behavior. However, conformity to prevailing group norms may deject workers from receiving organizational change. Group norms that disagree with the desired changes need alteration, while the cultural and structural norms that succeed to enhance the organization need promotion.

• Breaking Routines

Individuals are creatures of habit and see it difficult to abort behavioral customs that the organization think through no longer suitable. They prefer comfort zones by remaining routine role patterns. Hence, people oppose cultural and structural changes that push them out of their comfort zones and need devoting more energy and time acquiring new role patterns.

 

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• When involving entry employers, joint entries must be? brainly.com/question/4933698

• A company provides wages to its employees based on the amount workers produce. the more employees produce, the more they earn. this type of plan is called? brainly.com/question/6382273

KEYWORDS : Resistance to change, organization’s culture and structure

Subject  : Business

Class  : 10-12

Sub-Chapter : Organizational Behavior

8 0
3 years ago
Why are some industries regulated?
muminat
Uk ​ us ​ GOVERNMENT, LAW. a type of business that is controlled by government rules: This applies to workers in regulated industries, such as teaching or financial services. The nuclear industry is the most highly regulated industry in the world.
5 0
3 years ago
Stephanie manages a team that has gone through a tremendous amount of transition over the last year. There have been multiple re
fiasKO [112]

Answer:

a Disturbance Handle

Explanation:

7 0
2 years ago
Other questions:
  • A joint production process at Berry Lane Farm results in two​ products, blackberry syrup and blackberry jam. The following cost
    12·1 answer
  • What do geographers call the unequal distribution of wealth and resources in a specific geographic area?
    15·2 answers
  • The Turtle Society, a nongovernmental not-for-profit organization, receives numerous contributed hours from volunteers during it
    8·1 answer
  • Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm perfo
    14·1 answer
  • BUSINESS LAW
    11·1 answer
  • Shen and Valerie are building their portfolios. Shen purchases shares in a mutual fund and pays fees to a manager who actively m
    12·1 answer
  • Some countries are considering putting what in explosive materials to help track them?gps devicescomputer chipscolor coded chips
    6·2 answers
  • C
    13·2 answers
  • A product's target market is part of which of the 4 P's of marketing?​
    5·1 answer
  • A loss is when: (choose a, b, c, or d)
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!