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professor190 [17]
3 years ago
14

Your portfolio has a beta of 1.28. The portfolio consists of 25 percent U.S. Treasury bills, 31 percent Stock A, and 44 percent

Stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of Stock B
Business
1 answer:
Ivanshal [37]3 years ago
7 0

Answer:

2.21

Explanation:

Portfolio beta = Respective beta*Respective weight

<em>Beta of market=1;Beta of risk-free assets=0</em>

1.28 = (0.25*0) + (0.31*1) + (0.44*Beta of Stock B)

1.28 = 0 + 0.31 + 0.44*Beta of Stock B

1.28 - 0.31 = 0.44*Beta of Stock B

Beta of Stock B = 0.97/0.44

Beta of Stock B = 2.204545454545455

Beta of Stock B = 2.21

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1 year ago
On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t
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Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

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Compensation expense per year 1                       53333

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True or False: The term “academic training” refers primarily to formal classes taken in school.
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Answer:

False

Explanation:

4 0
3 years ago
Read 2 more answers
Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth. For the month of July, t
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Answer:

Spending variance will be equal to -729

Explanation:

We have given wages and salary is $2060 per month plus $442 per birth

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We have to find the spending variance

Spending variance is given by

Spending variance = Standard cost - actual cost = $53774 - $54500 = -729

So spending variance will be equal to -729

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