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Flauer [41]
3 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]3 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

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Zielflug [23.3K]
The answer to this question is 30 days
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6 0
3 years ago
Eric is an hr manager at communication connections. which task would he perform as a part of the human resource planning process
artcher [175]

Forecasting future human resource requirements for his company is a part of the human resource planning process.

Forecasting is the method of making predictions based totally on past and present statistics. Later those can be compared to what takes place. For example, an agency may estimate its sales within the next year, then examine it against the actual consequences. Prediction is similar, but the extra preferred time period.

Forecasting is a way that uses historic statistics as inputs to make informed estimates which can be predictive in determining the course of destiny traits. Businesses utilize forecasting to decide on a way to allocate their budgets or plan for expected expenses for an upcoming time frame.

There are 4 trendy steps in the Human Resource Planning process: identifying the modern supply of personnel, determining the future of the body of workers, balancing between labor supply and demand, and developing plans that help the employer's goals.

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7 0
2 years ago
A u.s. firm sells merchandise today to a british company for £100,000. the current exchange rate is $2.03/£, the account is paya
Arturiano [62]
The answer to this question is "GAIN: $2,000". Hence when a United States<span> firm sells merchandise today to a British company for £100,000. the current exchange rate is $2.03/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. if the exchange rate changes to $2.01/£ United States firm will realize a GAIN of $2,000.</span>
5 0
3 years ago
John Reynolds established a $500,000 trust, the income from which is to be paid to Mansfield University for general operating pu
zubka84 [21]

Based on the trust amount and the present value of income, the journal entry in Mansfield's books is:

Date          Account title                                   Debit              Credit

                 Beneficiary Interest in Trust       $500,000

                 Contributions with Donor                                      $500,000.

                  Imposed Restrictions

<h3>What journal entry would record the transaction?</h3>

The beneficiary interest account should be debited with the $500,000 that was used to establish the trust.

It should be credited to the Contributions account but only an account that accounts for the restrictions on usage.

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6 0
2 years ago
The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows: Maturity ​(years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5
kondor19780726 [428]

Answer:

The answer is $79.42

Explanation:

Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.

N(Number of periods) = 4 years

I/Y(Yield to maturity) = 5.93 percent

PV(present value or market price) = ?

PMT( coupon payment) = 0

FV( Future value or par value) = $100

We are using a Financial calculator for this.

N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42

Therefore, the market price of the bond is $79.42

7 0
3 years ago
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