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Klio2033 [76]
3 years ago
9

Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875. Stock Investment Bet

a A $50,000 0.50 B 50,000 0.80 C 50,000 1.00 D 50,000 1.20 Total $200,000 If Sherrie replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be
Business
1 answer:
yuradex [85]3 years ago
8 0

Answer:

The portfolio’s new beta will be 1.125

Explanation:

In this question, we are interested in calculating the portfolio’s new beta given the value of the beta of the stock which is used in replacing it.

We apply a mathematical approach here.

Mathematically;

Portfolio beta=Respective beta * Respective investment weight

=(50,000/200,000*1.5)+(50,000/200,000*0.8)+(50,000/200,000*1)+(50,000/200,000*1.2)

= 0.375 + 0.2 + 0.25 + 0.3 = 1.125

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Ron is the it director at a medium-sized company and is constantly bombarded by requests from users who want to select customize
fgiga [73]

The answer is <u>"Bring Your Own Device (BYOD)".</u>


BYOD (bring your own device) is the expanding pattern toward representative claimed gadgets inside a business. Cell phones are the most well-known case yet representatives likewise take their own particular tablets, PCs and USB crashes into the working environment.  

BYOD is a piece of the bigger pattern of IT consumerization, in which customer programming and equipment are being brought into the venture. BYOT (bring your own technology) alludes to the utilization of customer gadgets and applications in the working environment.

8 0
4 years ago
A monopolist is forced to lower its price in order to sell another unit of its product. this describes the problem of:________
Alborosie

A monopolist is forced to lower its price in order to sell another unit of its product. this describes the problem of marginal revenue is less than price.

A monopoly is a market structure in which  a single seller or a producer assumes that he has  a dominant position in an industry or any sector. Monopolies are discouraged in the  free-market economies as they try to  stifle the competition and limit different substitutes for consumers.

In the United States, antitrust legislation restricts monopolies which  ensures that one business cannot control a market and use that control to exploit its customers.

To know more about monopoly here:

brainly.com/question/10441375

#SPJ4

4 0
1 year ago
Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain su
Kamila [148]

Answer: False

Explanation:

Price discrimination refers to offering the same goods or services to people at a different price and it is illegal. By offering discounts to larger stores and not smaller stores, you would be practising price discrimination.

There are ways you could offer less prices to smaller stores such as through Volume discounts. This means that the more the stores purchase, the more discount they get. The larger stores buy more of the salsa and so for every additional batch purchased you could discount an extra 1%.

With the smaller stores unable to buy such large quantities they would not qualify for discounts.

7 0
3 years ago
If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF
ddd [48]

Answer:

    Variance = 5.44

Explanation:

The variance of a portfolio is a measure of the deviation of the returns of the assets making up the portfolio. Using the standard deviation, the variance can be worked out.

<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.</em>

<em>Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company . </em>

<em>The variance would be determined as follows:</em>

Variance = Sum of  P×(R- r )^2  

P- probality

R- return on each asset

r- Expected return on portfolio

r =( Wa*Ra) + (Wb*Rb)

Expected return (r) = (9% × 0.68 ) + (4% × 0.32) = 7.4 %

Outcome                 R          (R- r )^2             P×(R- r )^2  

Recession              9              2.56                1.74

Boom                     4             11.56               <u>  3.70 </u>

Total                                                           <u>  5.44 </u>

Variance = Sum of  P×(R- r )^2  

    Variance = 5.44

8 0
3 years ago
Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10
andrey2020 [161]

Answer:

loanable amount after Fed operation = $950 M

Securities after fed operation = $50 M

attached below is the T-account table

Explanation:

Given data:

For assets : securities = $100 M ,  Loans = $800 M

For Liabilities :  Constant demand deposit = $1000 M

difference between the assets and liability = $100 M  and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action

How with the reserve ratio reduced to: 0.05

hence required  Minimum required securities after operation = 0.05 * 1000 M = 50 M

Note : Total demand deposits = securities + loanable amount

therefore loanable amount after Fed operation = $1000 M - $50 M = $950

Attached below is the T-table

When both tables are compared it can be seen that there is a significant increase  in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base

5 0
4 years ago
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