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viva [34]
3 years ago
15

Portfolio Beta (LG10-3) You have a portfolio with a beta of 1.16. What will be the new portfolio beta if you keep 90 percent of

your money in the old portfolio and 10 percent in a stock with a beta of 0.69?
Business
1 answer:
makvit [3.9K]3 years ago
7 0

Answer:

the new portfolio beta is 1.11

Explanation:

The computation of the new portfolio beta is as follows;

The Beta of the new portfolio is

= (Portfolio beta × given percenatge) + (beta of the stock  × given percentage)

= (1.16 × 0.9) + (0.69 × 0.1)

= 1.11

hence, the new portfolio beta is 1.11

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Which process involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and ev
GarryVolchara [31]

Answer: Controlling risk

Explanation:

A risk event is an uncertain event or occurrence that can affect the achievement of the objectives of a project.

Controlling risk involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.

3 0
3 years ago
b. ​rational, self-interested government officials seeking more funding for mass transit through higher taxes should consider
Marysya12 [62]

Higher taxes is very unpopular and may result in losing the future elections.

Higher tax rate means decrease in the real income of the people. This will results in rising of the inflation as higher the tax rate the more will be the cost of production.

There will be many other consequences for the implication of higher tax rates such as people will not like that government anymore because very few people if comfortable in paying more taxes.

It will increase the gap between the rich and poor.

It may be possible that in future people will not prefer this government again for charging higher tax rates.

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6 0
2 years ago
Past performance review shows that vanessa is a good employee
aliina [53]

Answer: True, if the employee provides good work history

Explanation:

5 0
3 years ago
Read 2 more answers
Tom buys a shirt for $22.00 plus 7% sales tax. His cousin buys a shirt for $18.00 plus 4% sales tax.How much do Tom and his cous
astra-53 [7]

Answer:

Tom paid $23.54 while his cousin spent $18.72. Tom spent more on tax $.082 more than his cousin.

Explanation:

Tom

Cost of shirt = $22

Sales tax = 7%

Total amount paid = 22 + (7% × 22)

                               = 22 + 1.54

                               = $23.54

Tom's cousin

Cost of shirt = $18

Sales tax = 4%

Total amount paid = 18 + (4% × 18)

                               = 18 + 0.72

                               = $18.72

Tom spent more on tax as he spent $1.54 as against his cousin's $0.72.

3 0
3 years ago
McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2019, 100,000 shares we
Solnce55 [7]

Answer:

100,000 shares and 80,000 shares

Explanation:

Calculation to determine how many shares were issued and outstanding, respectively

The shares that were issued will be 100,000 shares that were sold to the company's founders while the shares outstanding will be 80,000 shares Calculated as :

Shares outstanding=Shares issued -Shares repurchased

Shares outstanding=100,000 shares-80,000 shares

Shares outstanding =80,000 shares

Therefore the Number of shares that were issued and outstanding, respectively are:100,000 shares and 80,000 shares

6 0
3 years ago
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