Answer:
Portfolio Beta = 1.333
Explanation:
The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The beta is the measure of the responsiveness of the stock in comparison with the market for any change happening in the market or due to systematic risk. We can calculate the portfolio beta as follows,
Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w refers to the weight of each stock in the portfolio
Portfolio Beta = 0.2 * 0.75 + 0.3 * 1.9 + 0.15 * 1.38 + 0.35 * 1.16
Portfolio Beta = 1.333
Answer:
Probable cause.
Explanation:
Probable cause by definition is reasonable grounds to believe that a particular person has committed a crime, especially to justify making a search or preferring a charge.
Answer:
The answer is: B.) XYZ's product is a close substitute for the locally available goods.
Explanation:
A substitute product can be defined as a good a consumer perceives as similar or comparable to another good (e.g. cow and chicken meat). Generally speaking, when the price of one of these goods increases, the demand for its substitute good increases.
In this case, Darren believes that since XYZ´s product is cheaper it should sell better than its competition (close substitute goods).
Answer:
The firm's contribution margin ratio is 62.5%
Explanation:
Contribution margin is the net of selling price and variable cost. It is the net return available to cover the fixed cost and make profit. Contribution margin ratio is the ratio of contribution margin to sale price.
According to given data
Price = $6
Variable cost = $2.25
Contribution margin = Price - variable cost = $6 - $2.25 = $3.75
Contribution margin ratio = 3.75 / 6 = 0.625 = 62.5%
Answer:
The Journal entry is as follows:
Cash Account Dr. $32,500
To common stock account $12,500
To Paid in capital in excess of common stock $20,000
(To record the issuance of the stock)
Workings:
Cash = 2,500 shares × $13 per share
= $32,500
Common stock = 2,500 × $5 per share
= $12,500
Paid in capital in excess of common stock:
= 2,500 × $8 per share
= $20,000
