Answer: b. The beta of the portfolio is higher than the highest of the three betas
Explanation:
The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.
For instance.
3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.
A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.
The portfolio beta will be;
= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)
= 1.98
Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.
City ledger.
<h3>What is a city ledger?</h3>
- The collection of accounts that belong to unregistered guests is known in hotel accounting as the city ledger. Unlike the temporary ledger, which is made up of the accounts receivable for visitors who are currently registered, this is not the same thing.
- One account payable that can be found in the city ledger is advance deposits. When a guest makes a deposit before registering, the hotel creates an account receivable to the guest for future services.
- City ledgers often have four accounts or more. The first sort of account is set up for people and organizations using the hotel for meetings and events. Instead of the front desk, the hotel's accounting staff handles the money it receives from these guests.
- A hotel's accounting procedure for keeping track of non-guest transactions is known as a city ledger or a house ledger. It is a group of related accounts that keeps track of a hotel's money that is not related to a transaction with an active guest.
Special hotel accounts for a company that has established credit with a hotel are called City ledger.
To learn more about the City ledger, refer to:
brainly.com/question/28149071
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Answer:
Explanation:
America has an absolute advantage in selling everything, a comparative advantage in selling mobile phones, a comparative advantage in selling tablets in Brazil
so we choose D
Here are the answers: Ceteris Paribus, we would expect the following to be the cause of a decrease in the demand for the automobiles and these are: Increased gasoline prices, the expectations of the consumers that the prices of the automobiles will depreciate the following year and that the significant recession will develop and will last for a year. (Answers are based from the actual options attached to this question.)
Answer:
$29.17
Explanation:
Calculation for how much would you be willing to pay for one share of the preferred stock
Using this formula
Amount willing to pay=Preferred stock annual dividend/Required rate of return on preferred stock
Let plug in the formula
Amount willing to pay=$3.50 per share/0.12
Amount willing to pay=$29.166
Amount willing to pay=$29.17 (Approximately)
Therefore how much would you be willing to pay for one share of the preferred stock is $29.17