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Y_Kistochka [10]
3 years ago
12

You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 15 percent in Stock S, and 35 percent in Stock

T. The betas for these four stocks are 0.75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?
Business
1 answer:
PilotLPTM [1.2K]3 years ago
7 0

Answer:

Portfolio Beta = 1.333

Explanation:

The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The beta is the measure of the responsiveness of the stock in comparison  with the market for any change happening in the market or due to systematic risk. We can calculate the portfolio beta as follows,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B + ... + wN * Beta of N

Where,

  • w refers to the weight of each stock in the portfolio

Portfolio Beta = 0.2 * 0.75  +  0.3 * 1.9  +  0.15 * 1.38  +  0.35 * 1.16

Portfolio Beta = 1.333

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Answer:

increased production of studs and spikes around the world

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The production of hese new designs have a direct correlation with the production of studs and spikes around the world

7 0
3 years ago
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Pete and Shirley are filing a joint return. They have two dependent children. What is the total amount of their exemptions for t
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Answer:

A. $0

Explanation:

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3 years ago
The accounts payable ledger has postings from which of the following sets of journals? a.Purchases, cash payments, and general b
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Answer: a. Purchases, cash payments, and general

Explanation:

The accounts payable ledger has postings from the purchases journal, cash payments journal and the general journal.

The accounts payable ledger is also referred to as the creditors ledger because it shows the amount that a company owes its suppliers.

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Therefore, the correct option is A.

3 0
3 years ago
Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi
DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

  • accounting profit = $12,000
  • opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0
2 years ago
Which of the following perspectives of quality judges a product on the basis of how well the product performs its intended funct
Elis [28]

Answer:

The correct option is A

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