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Sati [7]
2 years ago
12

Question 2 of 10

Business
1 answer:
Debora [2.8K]2 years ago
8 0
B is going to be your answer
You might be interested in
You have been managing a $3 million portfolio. The portfolio has a beta of 1.10 and a required rate of return of 10%. The curren
riadik2000 [5.3K]

Answer:

The Required rate of return on Portfolio is 9.67%

Explanation:

In order to get the answer first we need to calculate the new beta of portfolio.  The weight of portfolio and new stock is calculated using total value of investment in portfolio and multiplying by the total investment we get new beta.  

(3M / 3.6M) x 1.10 + (0.6M / 3.6M) x 0.60 = 1.01667

Through using the CAPM Model we get risk premium of Existing Portfolio:

Required rate of return of portfolio = RF + ( Rm - RF ) x beta

10% = 5.6% + (Rm -RF) x 1.10

10% - 5.6% = (Rm - RF) x 1.10

4.4% / 1.10 = (Rm - RF)

(Rm - RF) = 4%

After getting the Risk Premium we can CAPM model equation to get New Required rate of return.

Required rate of return of portfolio = RF + ( Rm - RF ) x beta

Required rate of return of portfolio = 5.6% + 4% x 1.01667

Required Rate of Return of Portfolio = 9.67%

8 0
3 years ago
This week you’re learning some of the characteristics that will help you practice your relationship building skill (trust, mutua
Romashka [77]

This is a personal question that should be based on your own experience. To create a discussion prompt about how some characteristics help to build relationships, you can structure the paragraphs with situations where you felt part of a group, like building friendships at school for example.

Mutual respect is a characteristic that must be applied in the social life of individuals to increase security, order, ethics and maintenance of a positive society, and must be shared in all social institutions.

<h3>How important is ethics to building relationships?</h3>

Ethics corresponds to the practice of moral values ​​in a society, that is, it is the set of actions that individuals practice in accordance with respect, empathy, the individual values ​​of others, making society a more just and egalitarian place.

Some ideas to increase the practice of mutual respect and ethics is to be cordial and empathetic to individuals, promoting good social and environmental actions for social well-being.

Therefore, ethics must be promoted in all social spheres to generate greater security, compliance and protection of the natural rights of each individual.

Find out more about ethics here:

brainly.com/question/13969108

#SPJ1

5 0
1 year ago
What does the quantity theory speculate about the cause of inflation?
Gala2k [10]
Well the quantity theory is "The hypothesis that changes in prices correspond to changes in the monetary supply" so when inflation happens the price will increase but when that happens the purchases and the value of money will decrease so will its demand. That's the speculation that the prices will not correspond to the monetary supply  
5 0
3 years ago
Which of the following is not an example of how you can reduce the full
andrezito [222]

To reduce the cost of higher education, what should not be done is to get low grades, because they can sanction you and you will have to repeat some subjects.

<h3>What is higher education?</h3>

Higher education is the education that a person accesses to specialize professionally in an area of ​​knowledge. Higher education is found in universities and there different specialized subjects are taken around a profession.

<h3>What to do to reduce the value of higher education?</h3>

To reduce the value of higher education, some students access scholarships that allow them to reduce these costs. However, scholarships generally require them to have high grades and maintain a high level of academic performance.

Therefore, if we want to reduce these costs we must get high grades and maintain a high average. On the other hand, if our grades are low, we are going to increase costs because we are going to have to pay for additional classes or repeat some of them.

Learn more about higher education in: brainly.com/question/2500637

#SPJ1

7 0
2 years ago
Schager Company purchased a computer system at a cost of $40,000. The estimated useful life is 10 years, and the estimated resid
Elodia [21]

Answer:

The correct answer is B: $5,600

Explanation:

Giving the following information:

Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.

Double-declining balance method= Netbook value* (2/useful life in years)

Year 1:

Double-declining balance method= (40000-5000)*(2/10)= $7000

Year 2:

Double-declining balance method= (35000-7000)*0.20= $5,600

7 0
3 years ago
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