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Sliva [168]
3 years ago
9

Suppose you put half of your money in Monster Beverage and half in IBM. What would the beta of this combination be if Monster Be

verage has a beta of 1.52 and Pepsi has a beta of .55?
A. 0.75
B. 1.00
C. 1.04
D. 0.55
E. 0.35
Business
1 answer:
Artemon [7]3 years ago
7 0

Answer:

C. 1.04

Explanation:

The computation of the portfolio beta is as follows:

Portfolio beta = respective beta × respective weight

= (1.52 × 0.5) + (0.55 × 0.5)

= 1.04

hence, the portfolio beta is 1.04

Therefore the correct option is C.

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

And, the same is to be considered

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A summary measure that is computed to describe a characteristic from only a sample of the population is called
Dmitriy789 [7]

Answer:

D. a statistic.

Explanation:

A statistic is a single quantity contained in or computed from a set of data. Unlike a parameter (a characteristic of a population) a statistic is a characteristic or measure of a sample.

A statistic is a characteristic of a sample. Generally, a statistic is used to estimate the value of a population parameter.

4 0
3 years ago
Sheria has to evaluate whether she has enough in-house staff working on her project. What steps should she go through to compute
Sergio039 [100]
The answer is going to be A
6 0
3 years ago
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the company maintains a 40% dividend payout ratio. The net income is $12,493. The total on the balance sheet is $106,900. What i
PilotLPTM [1.2K]

Internal growth rate is calculated by dividing retained earnings by total assets.

Retained earnings is calculated by subtracting dividends from net income

So: Retained earnings would be 12,493 - (12,493 X .4)

Then to find internal growth rate take your retained earning from above and divide by total assets (the total on the balance sheet : 106,900).

4 0
3 years ago
Quinn contracts to provide ten tons of scrap steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage of scrap s
solong [7]

Answer:

C) ​performance of the contract is commercially impracticable.

Explanation:

Contract law contemplates certain situations where performing the contract is either difficult or impossible and therefore the party is not liable for breaching the contract.

Commercial impracticability applies to contracts where the performance of at least one party is impracticable and cannot be accomplished.

In this case, Quinn cannot perform his duty since the price of scrap steel increased beyond any reasonable price contemplated in the contract. Since Quinn is not responsible for setting the price of scrap steel, he is not liable for breaching the contract.

7 0
3 years ago
Middlefield Motors is evaluating project A, which would require the purchase of a piece of equipment for 393,000 dollars. During
Firdavs [7]

Answer:

0.2273

Explanation:

The computation of the tax rate expected to be in year 1 is shown below:-

Depreciation = Operating cash flow - Net income - Interest

= $73,000 - $17,000 - $23,580

= $32,420

Earning before interest and tax = Revenue - Cost - Depreciation

= $157,000 - $79,000 - $32,420 -

= $45,580

Earning before tax = Earning before interest and tax - Interest

= $45,580 - $23,580

= $22,000

Tax rate = Earning before tax - Net income

= $22,000 - $17,000

= $5,000

Tax rate = Tax ÷ EBT

= $5,000 ÷ $22,000

= 0.2273

3 0
3 years ago
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