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jenyasd209 [6]
3 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]3 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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Daniel believes that a chemical company is responsible for contaminating some land that he owns. He files suit against the chemi
Tresset [83]

Answer:

Arbitration can work instead of the suit filed by Daniel against a chemical company is responsible for contaminating some land that he owns if they give him a worthy compensation.

Explanation:

Arbitration means to settle out of court.

This method is used in resolving disputes outside of court to avoid certain legal documents that might haunt the company in future.

During Arbitration, parties refer their disputes to an arbitrator who reviews the evidence, listens to the parties, and then makes a decision that is favorable to both parties. More like a win-win.

Arbitration clauses can be mandatory or voluntary, and the arbitrator's decision may be binding or nonbinding but for arbitration to work, the parties must arrive at a mutual compromise.

7 0
3 years ago
Which of the following management orientations accurately characterizes a company that bases its decisions primarily on market r
Aleonysh [2.5K]

Answer: Geocentric orientation

Explanation:

The management orientation that accurately characterizes a company that bases its decisions primarily on market research is the geocentric orientation.

A company that uses a geocentric orientation sees the whole world as a global market. We should note that a geocentric company makes its products and develops a marketing mix that's standardized for the global market.

7 0
2 years ago
Mills Corporation acquired as an investment $260 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holdi
aleksandrvk [35]

Answer:

1.

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

Cr Cash $300

2.

Dr Cash$7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue $6

3.

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

4.

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

Explanation:

Mills Corporation Journal Entry ( $ million)

1.

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

(300 -260)

Cr Cash $300

2.

Dr Cash

($260 million X 6% / 2) $7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue

($300 million X 4% / 2) $6

3.

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

($260+$40-$1.8

4.

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

8 0
3 years ago
"The user test and acceptance procedure is the last point at which the user can determine the system’s acceptability prior to it
tatyana61 [14]

Answer:

True

Explanation:

Assuming it to be true false question the given statement is true.

The given statement is absolutely correct that the user test and acceptance procedure is the last point at which the user can determine the system’s acceptability prior to it going into service.

4 0
3 years ago
Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three m
ASHA 777 [7]

Answer:

Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses so will have to be removed to find out how much is due in the month.

                                                                          March           April           May

March Expenses :  

Paid in March                                                   $73,112

Paid in April                                                                          $25,688

April Expenses :  

Paid in April                                                                     $66, 600

Paid in May                                                                                            $23,400

May Expenses :  

Paid in May                                                                                            $‭58,830‬

Total Cash Payment                                        $73,112      $92,288   $82,230

<h2>Working </h2>

March Expenses

Paid in March ((125,800 - 27,000)* 74%) = $73,112

Paid in April ((125,800 - 27,000)*26%) = $25,688.

April Expenses

Paid in April ((117,000 - 27,000)*74%) =  $66, 600

Paid in May ((117,000 - 27,000)*26%) = $23,400

May Expenses

Paid in May ((106,500 - 27,000)*74%) = $‭58,830‬

4 0
3 years ago
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