If you keep 10% of your cash in the previous portfolio and invest 90% in a stock with such a beta of 2.69, the new portfolio's beta will be 2.67.
<h3>Portfolio beta – what is?</h3>
According to the selected stocks betas of the securities that make up a portfolio, portfolio beta describes the relative volatility of a portfolio of individual securities when viewed as a whole.
<h3>What makes a portfolio beta good?</h3>
A gauge for a currency's risk level or volatility in relation to the whole market is its beta value. Therefore, a suitable beta will depend on your objectives and risk tolerance. A beta of 1.0 would've been perfect if you wanted to imitate the larger market within your portfolio, perhaps through an index ETF.
<h3>Briefing:</h3>
New portfolio beta = (0.10 × 2.44) + (0.90× 2.69)
= (0.244 + 2.421)
= 2.67
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Answer:
Unilateral Mistake
Explanation:
In a contract between two parties, a unilateral mistake occurs when one party in the contract makes a mistake regarding cost, the definition of a term or word, or measurement. The outcome of such a mistake is usually a conflict between the two parties. To resolve this problem, the contract could be canceled (if the other party becomes aware of the mistake), or reformed (if only one party is aware of the mistake).
When Mark made a mistake about the cost of building the house for David, he made a unilateral mistake as the mistake was committed by him alone. David's refusal of the amended cost is resulting in a conflict that would likely lead to the cancellation of the contract.
The reason why commodity futures contracts are transferable is: <span>They can be bought and sold but the obligation in the contract remains valid.
Commodity futures contract is an agreement to buy or sell a specific asset at a specific price somewhere in the future.
This contract does not specify the name of the person who should buys the asset, so it could be transferable as long as the exchange is still fuiflled.
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Answer:
c. 10%
Explanation:
Law Imposes additional 10% tax on early distribution of 401 (k) retirement plan. This law is to discourage the use of retirement fund for other purposes than the retirement plan. Evie want early distribution of her funds so she must pay 10% additional tax on these funds. So option c. 10% is correct for 401(k) retirement plan.
Unemployment willl cause the production possibilities to shift inwards, so I the answer would be option A.
During massive unemployment period, production possibilities will heavily decrease due to the lower amount of capital and the lower amount of consumers for that potential product (which happen because the consumers lose a lot of its purchasing power). This situation will cause the curve to move inwards.
