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
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate, liquidating distribution of $16,000 ca
zavuch27 [327]

Answer:<u><em> The amount and character of Daniela's gain or loss from the distribution will be $0.</em></u>

Explanation:

Given : Daniela is a 25% partner in the JRD Partnership, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000.

<u><em>Here, Daniela will not recognize any gain or loss on the distribution. She will instead reduce the basis of the inventory she receives in complete liquidation of her interest.</em></u>

4 0
3 years ago
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the
Andru [333]

Answer:

The correct answer is: a macro-segment.

Explanation:

The Market Opportunity Analysis or MOA is a tool used to identify market opportunities and measure them to determine if they can be profitable for the company before the firm starts planning to work with it. The MOA implements segmentation to classify as specific as possible the product that is intended to be offered.

Micro-segments refer to products with narrow scopes while macro-segment products have wider reach and variability inherent. Thus, in the example, <em>ales represent the macro-segment since it has varieties such as brown ale, pale ale, golden ale, Scotch ale, and mild ale just to mention a few.</em>

4 0
3 years ago
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components depa
Luba_88 [7]
By supplying the right amount of funds
7 0
3 years ago
Observe any person working in a business endeavor and Identify up to five skills and qualities this person possesses.
yulyashka [42]
Answer: I honestly have no clue man, i honestly think your completely out of luck, sorry i couldn’t help.
5 0
3 years ago
1. What are reserves held by banks?
Paraphin [41]

Answer:

This is what I found!

Explanation:

Bank reserves are the cash minimums that must be kept on hand by financial institutions in order to meet central bank requirements. The bank cannot lend the money but must keep it in the vault, on-site or at the central bank, in order to meet any large and unexpected demand for withdrawals.

7 0
3 years ago
Other questions:
  • What is one reason why a business owner might choose a for-profit business over a nonprofit business?
    10·1 answer
  • Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t
    14·1 answer
  • Which of the following should be filed immediately after bogart
    12·1 answer
  • Level of employment reached when there is no cyclical unemployment.
    7·1 answer
  • Sean has been researching the value of teams and has decided the concept of teams makes sense. He has a group of employees in hi
    14·1 answer
  • Your friend Sam has been asked to prepare appetizers for a university reception during homecoming weekend. She has an unlimited
    7·1 answer
  • There is an old American adage (saying): If you owe the bank a small amount of money, the bank controls you. If you owe the bank
    5·1 answer
  • Carbonale Castings produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an
    13·1 answer
  • the houston metro area represents which problem that exists in creating functional mass transit systems in texas?
    11·1 answer
  • Select the things are considered psychological influences on the purchase decision process? (select all that apply) multiple sel
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!