The portfolio beta would simply be the summation of the
weighted average of each beta.
Where weighted average of each beta is calculated as:
Stock weighted average = Stock proportion * Individual
beta
Therefore,
Stock A beta weighted average = 0.2 * 0.4 = 0.08
Stock B beta weighted average = 0.3 * 1.2 = 0.36
Stock C beta weighted average = 0.25 * 2.5 = 0.625
Stock D beta weighted average = 0.25 * 1.75 = 0.4375
The summation of all betas yield the overall portfolio
beta:
Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375
<span>Portfolio beta = 1.5025 ~ 1.5</span>
If they must pay for property's real estate taxes and premiums for insuring the building. The type of lease xyz company sign is:<u> Double net lease.</u>
<h3>What is Double net lease?</h3>
Double net lease can be defined as form of agreement that occur between a tenant and a landlord were the tenant agrees to pay for the cost of rent while the landlord on the other hand agrees to pay for operating expenses incurred by the tenant.
Based on the given scenario the type of the lease xyz company sign is called double net lease as they have to pay for property's real estate taxes as well premiums for insuring the building.
Therefore the type of lease xyz company sign is:<u> Double net lease.</u>
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Answer:
B. the passage of time.
Explanation:
Price elasticity of supply measures how sensitive quantity supplied are to changes in price.
Price elasticity of supply is determined by the passage of time.
Typically, in the short run, the elasticity of supply is usually inelastic. Prices do not usually impact quantity supplied because in the short run, some of the factors of production are fixed. But in the long run, the price elasticity of supply are more elastic.
The other factors listed above in the options affect the price elasticity of demand.
