The portfolio beta would simply be the summation of the
weighted average of each beta.
Where weighted average of each beta is calculated as:
Stock weighted average = Stock proportion * Individual
beta
Therefore,
Stock A beta weighted average = 0.2 * 0.4 = 0.08
Stock B beta weighted average = 0.3 * 1.2 = 0.36
Stock C beta weighted average = 0.25 * 2.5 = 0.625
Stock D beta weighted average = 0.25 * 1.75 = 0.4375
The summation of all betas yield the overall portfolio
beta:
Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375
<span>Portfolio beta = 1.5025 ~ 1.5</span>
The increase in government spending will have a larger effect on aggregate demand and would be larger if the Fed were committed to maintaining the fixed interest rate since in this case the negative crowding out effect would be compensated for.
A fixed interest rate is an unchanging fee charged on legal responsibility, such as a loan or mortgage. it might follow during the complete time period of the mortgage or for simply a part of the term, however, it stays the same in the course of a set period.
A fixed interest rate mortgage is a mortgage in which the interest price would not differ all through the constant charge period of the mortgage. This lets the borrower to as it should be are expecting their future payments. Variable fee loans, by way of comparison, are anchored to the prevailing bargain fee.
A set interest price is a price that doesn't alternate at some stage in your mortgage, or at least for a particular length. united kingdom banks frequently appoint fixed interest costs for mortgages and financial savings money owed. as an example, banks will provide a 5% constant hobby charge in your savings for 365 days, which then drops to at least one% or much less.
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Answer and Explanation:
The journal entry is as follows;
Cash ($5,400,000 × 102%) $5,508,000
To Bonds Payable $5,400,000
To Premium on Bonds Payable $108,000
(Being issuance of the bond payable is recorded)
Here the cash is debited as it increased the assets and credited the bond payable and premium on bond payable as it increased the liabilities
A located strategy called a market positioned strategy would be the most likely warehouse location strategy to be used if a company has many more suppliers than customers.
<h3>What is a
market positioned strategy?</h3>
This strategy involves that determination of ideal number and the best location of warehouses to locate to allow the firm to best serve the organization's customers.
Hence, it is very important that the firm locates its warehouses where it will ensure an efficient operation and ultimately business success.
In conclusion, the market positioned strategy is the best location stragegy because it will allows to the firm to contact the supplier and consumer at ease.
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