A stock portfolio's overall beta is found by multiplying each stock's beta times the percentage of the overall portfolio it makes up and adding these terms together. Since the current portfolio's beta is known, we can treat all the stocks in the portfolio as a single stock for calculating its weight in the new portfolio. Thus, our new portfolio will have a value of $150,000, $100,000, or 2/3, of which has a beta of 1.5 and $50,000, or 1/3, of which has a beta of 3. Then the beta of the new portfolio will be 1.5*(2/3) + 3*(1/3) = 2.
Answer:
-21.6
Step-by-step explanation:
-5.4
x 4 4x 4=16 so you carry the one to 5x4= 20 + 1 that was carried
-------- keep it negative
-21.6
Answer:
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Step-by-step explanation:
Given
In 1990; Income= $39000
In 2010; Income= $70768
Solving (a): An equation in form of f(x) = ax + b
First, we need to determine the slope, a

Taking y as income and x as year index.
When x = 0; y = 39000
When x = 20; y = 70768
Substitute these values in the above formula



Next, is to determine the formula using:

<em>Considering :When x = 0; y = 39000, we have</em>
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<em>Make y the subject of formula</em>
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<em>Express y as a function of x</em>
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Solving (b): Income in 2005
<em>In 2005, x = 15</em>
So:
becomes


Answer:
option D is the right answer