1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bonufazy [111]
3 years ago
10

The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stock D, which has

a beta of 1.0, to his portfolio. If the investor wants his portfolio to have a beta of 1.72, how much stock C must he replace with stock D
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer: $36,000

Explanation:

First calculate the individual weights for the different stocks as this will help with the calculation of beta.

Total amount invested = 16,000 + 48,000 + 96,000 = $160,000

Stock A weight = 16,000/160,000 = 10%

Stock B weight = 48,000/160,000 = 30%

Stock C weight = 96,000/160,000 = 60%

Stock D is to be bought by replacing some of stock C which means that the weight of stock C in the new beta calculation will be exactly less than 60% by the weight of D.

Assuming the weight of d is x, beta is;

Portfolio beta = ∑(weight of stock * beta)

1.72 = (10% * 1.3) + (30% * 1.8) + ((60% - x) * 2.2) + ( x * 1)

1.72 = 0.13 + 0.54 + 1.32 - 2.2x + x

1.72 = 1.99 - 1.2x

1.2x = 1.99 - 1.72

x = (1.99 - 1.72) / 1.2

x = 0.225

Weight of stock D will be 0.225 which is how much of stock C will have to be sold.

The amount of stock C that should be replaced by D is therefore;

= 160,000 * 0.225

= $36,000

You might be interested in
You work for a company where the HR director has been involved in unethical activities. You know that others are also aware of t
lions [1.4K]

Answer:

Personal Pros & Cons

Explanation:

To become a whistleblower in this situation, you might want to stay anonymous when reporting the situation. By staying anonymous you can report this situation without being worried that this HR director will know. But, if you don't want to become the whistleblower someone else might report them and you'll be out scot-free. But in the chance, someone doesn't, then you might feel guilty for not reporting this issue.

4 0
3 years ago
Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each c
yulyashka [42]

Answer: $6

Explanation:

Total production of oranges= 4

Total production of candy bars=10

Each orange sells for=$0.25

Total market value of orange production=price × quantity

=$0.25×4

=$1

Each candy bar sells for= $0.50

Total market value of candy bar production=price of candy bar × quantity of candy bar

=$0.50 × 10

=$5

The economy produces oranges and candy bars.

The total market value of production in the economy= Total market value of Orange production + Total market value of candy bar production

=$1 + $5

=$6

5 0
3 years ago
Write a 700- to 1,050-word paper that evaluates the impact of implementing triple aim goals nationally.
Luba_88 [7]

Answer:

These were the "Tripple aim goals"

  • Improving quality and satisfaction
  • Improving the health
  • Reducing the per capita cost of health care

Explanation:

The United States has the most expensive healthcare in the world. It also has the best healthcare in the world. This may contend from a different perspective, but one point of view outplays them all and that is the freedom of choice to choose our healthcare benefactors. There’s enormous flexibility in the American system that other countries can only dream of. Its system could be better, and to do that we have to look at what would make it better. There are different phases of our healthcare that are not practicing what we would want them to be and when we look to people for answers we turn up with a three-pronged approach to making our healthcare live up to everybody’s expectations. If we look at the three aims:

• Improving quality and satisfaction for the patient experience of care,

• Improving the health of populations,

• Reducing the per capita cost of health care.

It doesn’t take long to realize that the three are closely interwoven. For example, if we asked 50 people about a particular list of complaints about their healthcare, I would stake good money that every single one had a high cost on it. The high cost of healthcare has been a favorite whipping boy in this country for some time now, and it doesn’t look like that is going to transform, the question is can it?

Genuinely, we need to lower costs is civilizing the health of the individual populations, and patient satisfaction. Healthy individuals don’t go to the doctor as much and lower their costs, satisfied people do the same, they are happy with the cure they got and don’t unnecessarily spend money on going to another doctor. So the Problem statement becomes how do we tackle the issue and what will it bring?

If we take a small group of people perhaps 50 and we just automatically lower their costs so that they pay thirty-five cents on the dollar, then we have accomplished two of the objectives. Apparently, we can’t just do that in real life we would have to take many steps to be able to do this, among them would be to advance the quality of their care. But, once we got started on each of the three goals, then we would see a synergistic effect in the other areas, and soon it would feed on itself.

At the beginning of the last century, Henry Kaiser had combined wealth as well as several companies, not to mention about 60,000 employees. He struggled with every aspect of a dissatisfied customer when the time came for his employees and their healthcare. Nothing seemed to get it to where he wanted it to be cost-wise and satisfaction-wise. Not to mention the overall health of his employees. With the issue of putting many times the effort into healthcare that other companies did, none of them were better-off, and none of them were any healthier than anybody else in the country. Until he took the bold step of bringing healthcare “in-house”. He formed his private clinic and hospital medical staff, and to this day it stands as a paragon of medical service and still outperforms all other healthcare in the country.

Noticeably, taking the same approach as Henry Kaiser would result in the same results, although it would be many times more difficult and would require that we vote on it as a nation.

If the President of The United States could take one-sided action much as Henry Kaiser did, and treat our people as a father would his children, then we could accomplish this goal quickly. Since that is not possible, let us assume that we have spent 50 years taking baby steps and finally we have achieved our goal and every one is 100 percent happy with how their healthcare works and what happens, and we have reduced diseases as we know them and there is a sense of prosperity over the country.

First, the impact would allow us more free time, since we would not be spending it being sick or catching up on school or work from being sick.

Second, there would be free money in that there would be so much of our finances freed up, some estimate as much as a 30-32% increase in our income, then would be the increased maturity, some estimates are as high as 150. There would be decreased traffic, decreased crime, etc... When all is said and done, we would marshal in a golden age for mankind and there are penalties and benefits that we could debate about for years, and would never even guess at until it happens. There are many things that we simply would not expect until we actually consummate the goal.

For more content like this visit Brainly;

brainly.com/question/28179570

#SPJ4

6 0
2 years ago
An organizational structure that is common among companies pursuing some form of diversification strategy or global strategy is
tatuchka [14]

Answer:

multidivisional structure

Explanation:

Multidivisional structure is a systematic division of an organizational structure where each divisions work autonomously to maintain it's own operations based on geographic locations, products or services and target customers . At the same time each of these divisions work together to achieve the mission of the organization at large.

7 0
4 years ago
Which best describes the barrier to trade known as dumping? Destroying shipments of imports to force consumers into purchasing d
Lana71 [14]

Answer: Selling exports abroad at a lower price than the domestic price.

Explanation:

Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.

This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.

An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.

7 0
3 years ago
Other questions:
  • The objective of causal research is to ________. A. predict the effect of a random event on unrelated entities B. describe thing
    7·1 answer
  • ​Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza cheese​ increases, ceteris
    12·1 answer
  • As of july 2017, what movie is listed as number 1 on the american film institute's list of the "100 funniest movies of all time
    9·2 answers
  • How does your income affect other aspects of your lifestyle?
    9·1 answer
  • Bonita Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item N
    15·1 answer
  • Problems and Applications
    11·1 answer
  • Fess Hardware Store had net credit sales of $8,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivabl
    12·1 answer
  • Angle B has a measure between 0 and 360 and is coterminal with a –865° angle. What is the measure of angle B?
    6·2 answers
  • Is anyone else bored? or is it just me?
    14·2 answers
  • On January 1, Year 4, Jaffe Co. leased a machine to Pender Co. for 10 years, with $10,000 payments due at the beginning of each
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!