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PilotLPTM [1.2K]
3 years ago
5

Mike Flannery holds the following portfolio: Stock Investment Beta A $150,000 1.40 B $10,000 0.80 C $140,000 1.00 D $75,000 1.20

Total $375,000 What is the portfolio's beta? Do not round your intermediate calculations.
Business
1 answer:
Nonamiya [84]3 years ago
7 0

Answer:

Beta= 1.195

Explanation:

Giving the following information:

Stock Investment Beta

A $150,000 1.40

B $10,000 0.80

C $140,000 1.00

D $75,000 1.20

Total $375,000

<u>First, we need to calculate the proportion of investment of each stock:</u>

A= 150,000/375,000= 0.40

B= 10,000/375,000= 0.027

C= 140,000/375,000= 0.373

D= 75,000/375,000= 0.2

<u>Now, to calculate the beta of the portfolio, we need to use the following formula:</u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)... etc

Beta= (0.4*1.4) + (0.027*0.8) + (0.373*1) + (0.2*1.2)

Beta= 1.195

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Answer:

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2) A student loan is usually alot. You should use credit becuase sometimes you don’t have the cash right away. If you graduate college with a degree, you cold get a job in the area you got a degree from. If successful and your careful about your spending, you should be able to pay back your student loan. Going to college and using credit is definitely the better answer here since a lot of jobs that can make you a living and could be used to pay back the student loan require a college degree. If you don;t go to college, sure you don’t have to pay back anything but you would be stuck with a very low income job and sometimes you would be barley making a living. The chances of a better job decreases if you don’t go to college since most jobs are looking for a special degree or at least a college degree.

3) Renting would be the best choice using cash. If your gonna get a house, you have to consider your income. If your income is low, a house is not a old choice. If a house is more expensive, a mortgage would be better since the interest is a one way (most of the time) but a credit has monthly intresest so the interest totaled up on an expensive house would be a lot. On a cheaper house its vice versa. If you have a low income job just rent with cash, renting would be best. Your most likely gonna live in a house forever but if you have to move somewhere, you’d have to sell it and do a bunch of confusing stuff and maybe get in even more debt, if you rent, you can move easily if you have to move somewhere closre to your work.

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Answer:

$455,000

Explanation:

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Foundation work =  $8,000

additional water line = $3,000

Labor and testing costs = $6,000

Materials used up in testing = $3,000

Total Costs to be capitalized:

= High-speed industrial centrifuge + Shipping costs + Foundation Work + Additional Water Line + Labor and testing costs + Materials used in testing

=  $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000

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3 years ago
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ipn [44]

Answer:

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Risks:

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Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.

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ratelena [41]
The answer to this question is Elastic
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3 years ago
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Answer:

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Explanation:

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3 years ago
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