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jenyasd209 [6]
2 years ago
15

You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc

k A is 1.46 and the beta of the portfolio is 0.93, what does the beta of stock B have to be
Business
1 answer:
7nadin3 [17]2 years ago
4 0

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

0.93 = 0 + 0.4867 + 0.333B

0.93 = 0.4867 + 0.333B

0.4433 = 0.333B

B = 0.4433 / 0.333 = 1.33

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Answer:

All accounting process are important.

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All the recording of facts are important because the recording of facts enables the company to look the company with a financial perspective. In this scenario the accounting system can be used to see which store has generated more than the rest of the stores and will help CFO to reward the staff and use their tactics to implement in the other stores to increase the efficiencies of other stores.

7 0
2 years ago
The final step in active listening involves
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The final step is responding.

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A company purchased a piece of equipment for $350,000 in 2008. As of 12/31/2015, $215,000 of depreciation expense had been recog
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Answer:

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Net book value of the equipment on 12/31/2015 is given by:

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7 0
3 years ago
In the aggregate expenditures model, it is assumed that: a.gross investment (I), government purchases (G), and net exports (NX)
tiny-mole [99]

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The Correct Option is "B"

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3 0
3 years ago
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240,000,000

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