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ANEK [815]
2 years ago
13

According to the CME Group, the market price of the E-mini futures is $2,939.25. Each futures contract delivers 50 times the ind

ex. A long-only equity portfolio with market value of USD $10,000,000 has a beta of 1.5. The portfolio manager is planning to increase market exposure such that the portfolio beta becomes 2. How many futures contracts should the manager long/short
Business
1 answer:
KatRina [158]2 years ago
3 0

Answer:

E-Mini futures = $2,939.25

Contract Size = 50

Portfolio Value = $10,000,000, Beta 1.5

Target Beta 2, Planning to increase the exposure

Calculation of Number of contracts needed = [Portfolio Size x (Target Beta - Actual beta)] / Contracts Size x Future Price

= (10,000,000 x (2 - 1.5) ] / 50 x 2939.25

= (10,000,000 x 0.5) / 146962.5

= 5,000,000 / 146962.5

= 34.02228459641065

= 34

So, you need to go Long 34 contracts to Increase the exposure.

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A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace
Mekhanik [1.2K]

Answer:

a. 2560 checkout

b. 3072 checkout

c. Old system = 3.85 checkout/$

New system = 5.56 checkout/$

Explanation:

Given:

Checkout lanes = 4

a.

How many checkouts did the old system provide in a shift?

Given

Lanes = 2

Time in use = 16 hours --- Convert to seconds

Time = 16 * 3600 = 57600 seconds

Checkout = 1 per 45 seconds

Number of check outs is calculated as:

2 lanes * 57600 seconds * 1 checkout / 45 seconds

Number of checkout = 2560 checkouts

b.

How many checkouts does the new system provide?

Lanes = 4

TimeTime in use = 16 hours --- Convert to minutes

Time = 16 * 60 = 960 minutes

Number of check outs is calculated as:

4 lanes * 960 minutes * 1 checkout / 1.25 minutes

Number of checkout = 3072 checkouts

c.

Given

Electricity costs for both setups are $0.06 per checkout

Bagging (material) costs are $0.12 per checkout with the old system

Bagging (material) costs are $0.20 per checkout with the old system

Cost for the old system is calculated by:

$0.06 * 2560 + $0.12 * 2560

= $153.6 + $307.2

= $460.3

Multifactor = 2560 checkout/$460.3

Multifactor = 5.56 checkout/$

Cost for the new system is calculated by:

0.06 * $3072 + 0.20 * $3072

= $184.32 + $614.4

= $798.72

Multifactor = 3072 checkout/$798.72

Multifactor = 3.85 checkout/$

6 0
3 years ago
A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory
ohaa [14]
Purchases = Sales units + Closing inventory - Beginning Inventory
                  = 6,000 + (1,000 * 115%) - 1,000
                  = 6,150 units
7 0
3 years ago
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. I am buying a firm with a
algol [13]
This wouldn’t by chance have multiple choice options would it?
5 0
3 years ago
Regarding the results of a SWOT analysis, organizational weaknesses are ___________. (a) internal factors that the organization
xxMikexx [17]

Answer:

Regarding the results of a SWOT analysis, organizational weaknesses are

skills and capabilities that give an industry advantages problems that a specific industry needs to correct (d).

4 0
3 years ago
Which approach was the first to emphasize informal work relationships and worker satisfaction and emerged from a scientific mana
True [87]

Answer:

Human relations.

Explanation:

<u>Human relations</u> is a passageway that beamed at the perception of how psychological, as well as social processes, communicate with the work position to affect execution. Human relations was the primary significant approach to maintain informal work relations as well as workmen fulfillment. In fact, human relations appeared in a study analysis that essentially became a scientific management study that emerged in the exploration of the Hawthorne effect.

6 0
3 years ago
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