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IgorC [24]
3 years ago
14

What are the portfolio weights for a portfolio that has 122 shares of Stock A that sell for $32 per share and 102 shares of Stoc

k B that sell for $22 per share
Business
1 answer:
goblinko [34]3 years ago
6 0

Answer and Explanation:

The computation of the portfolio weights is shown below:

But before that first we need to determine the total value  of Stock A and Stock B which is

For STock A

= 122 × $32

= $3,904

For STock B

= 102 × $22

= $2,244

Now

Total value is

=  $3,904 + $2,244

= $6,148

And, finally weights are

For STock A

= $3,904 ÷ $6,148

= 0.6350

For Stock B

= $2,244 ÷ $6,148

= 0.365

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2 years ago
People who have a negative digestive response to milk or milk products are experiencing
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3 years ago
Jim had a beginning inventory of $5,500. During the month of April, he purchased $4,000 of food and had an ending inventory of $
Likurg_2 [28]

Answer:

1.23

Explanation:

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period.

Cost of Sales=Opening Inventory+Purchases-Closing Inventory

                      =5,500+4,000-3,800= 5,700

Average Inventory= Opening + Closing/2

                              = 5,500+3,800/2= 4,650

Inventory Turnover Ratio= <u>Cost of Sales</u>

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8 0
3 years ago
National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6
Temka [501]

Answer:

$8.78

Explanation:

National advertising made dividend payment of $0.75 per share

The dividend is expected to grow at a constant rate of 6.50%

= 6.50/100

= 0.065

The company beta is 1.85

The required return on the market is 10.50%

The risk free rate is 4.50%

The first step is to calculate the rate of return using the CAMP model

R = Risk free rate+beta(market return-risk free rate)

= 4.50%+1.85(10.50%-4.50%)

= 4.50%+1.85×6%

= 4.50%+11.1

= 15.6

Required rate of return= 15.6

Therefore the current stock price can be calculated as follows

Po= Do(1+g)/(r-g)

Where Do= 0.75, g= 0.065, r= 15.6

Po= 0.75(1+0.065)/(0.156-0.065)

Po= 0.75(1.065)/0.091

Po= 0.7987/0.091

Po= $8.78

Hence the company current stock price is $8.78

3 0
3 years ago
Rocco earns​ $19.00 per hour for straight time​ (40 hours), and the company pays him​ time-and-a-half for overtime. he worked 49
hram777 [196]
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4 0
3 years ago
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