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
erma4kov [3.2K]
3 years ago
6

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 18%. The standard deviation on

the factor portfolio is 16%. The beta of the well-diversified portfolio is approximately:_________
Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of:__________
Business
1 answer:
Luden [163]3 years ago
5 0

Answer and Explanation:

The computation is shown below:

1. For Beta^2

= Standard Deviation of Well Diversified Portfolio^2 ÷ Standard Deviation of factor Portfolio^2

= (18%^2 ÷ 16%^2)^0.5

= 18 ÷ 16

= 1.125 or 1.13

And,

2. Expected Return = Risk free rate + Beta ×Factor

18% = 6% + 1 × F

F = 12%

The Beta of A is

= (15% -  6%) ÷ 12%

= 0.75

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

And, the same is to be considered

You might be interested in
Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable                                      $2,000,000

      To common stock                          $1,000,000

      To Discount on common stock     $30,000

      To Paid in capital                            $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable            

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0
3 years ago
A brief overview of your company's strengths, weaknesses, opportunities, and threats is called a
Leni [432]

A brief overview of your company's strengths, weaknesses, opportunities, and threats is called a SWOT analysis.

What is meant by SWOT analysis?

A framework known as a SWOT analysis is used to identify and evaluate an organization's strengths, weaknesses, opportunities, and threats. The acronym SWOT is composed of these words. SWOT analysis's main objective is to raise awareness of the elements that influence business decisions and the formulation of business strategies.

How important is SWOT analysis in strategic planning?

A SWOT analysis will put you in a position to take advantage of possibilities and develop winning plans. Understanding your internal environment clearly and realistically will help you find strategies to improve client satisfaction, accomplish your goals, and reinforce vulnerable areas that affect your performance.

Learn more about SWOT analysis: brainly.com/question/19626045

#SPJ4

3 0
1 year ago
Many writers have stated that for strategic objectives to be effective, they should be: ​ a. broad - to cover many dimensions of
likoan [24]

Answer:

The answer is option C) Many writers have stated that for strategic objectives to be effective, they should be measurable - to track progress

Explanation:

Many writers have emphasized the need to make SMART strategies.

In other words, there’s a need for specific, measurable, achievable, realistic and timely.

Therefore, developing a prioritization of projects to ensure the high priority ones have the proper resourcing to ensure success requires a high involvement and commitment to track progress.

The high level of involvement of employees ensures that they understand the strategic plan. It increases their level of commitment to ensure the strategy is successfully executed because they understand how their work and the work they’re completing on the project helps the organization to realize some or all of one of their key strategies.

6 0
4 years ago
A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the custome
lapo4ka [179]

A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the customer may sell these shares Over a 90-day period.

The stock exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded. The central function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information regarding securities trading on that exchange.

The exchange enables businesses to raise capital and investors to make informed decisions based on real-time pricing information. An exchange can be a physical location or an electronic trading platform. Bitcoin He is like one stock and advisers do not recommend investing the majority of his portfolio in one company. Planners suggest that if you're passionate about Bitcoin, don't invest more than 1% to 10% in it at most.

Learn more about stock here

brainly.com/question/25818989

#SPJ4

6 0
2 years ago
A firm decides to scale back its operations due to projections of slower demand. It will move from a large building to a smaller
Natasha_Volkova [10]

Question Options:

constant returns to scale.

diseconomies of scale.

rising fixed costs.

economies of scale.

Answer: ECONOMIES OF SCALE.

Explanation: Economies of scale in business refers to the characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. Here, production is efficient and the best value is received from the resources available thereby making costs per unit of output will be larger.

7 0
3 years ago
Read 2 more answers
Other questions:
  • It is simplest for plumbers to wait until after construction on a floor is complete to begin work.
    12·1 answer
  • You purchase a share of Boeing stock for $90. One year later, after receiving a dividend of $3, you sell the stock for $92. What
    9·1 answer
  • Today, _______________ dominate their supply chains.
    7·1 answer
  • List three signature cooking methods in french cuisine
    8·1 answer
  • Which of the following best describes ethics?
    14·2 answers
  • A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $1
    11·1 answer
  • Firms and brands that continually attempt to operate in the
    15·1 answer
  • Fellingham Corporation purchased equipment on January 1, 2019, for $240,000. The company estimated the equipment would have a us
    14·1 answer
  • Gillian's manager retired recently, so now she has a new manager to report to, Anne. Gillian notices that Anne tries to ensure t
    8·1 answer
  • Issuing bonds to obtain long-term funds legally compels a firm to pay regular ________ payments and repay the ________ at the ma
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!