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tekilochka [14]
3 years ago
7

Joel owns the following portfolio of securities. What is the beta for the portfolio?Company Beta Percent of PortfolioExxon-Mobil

.95 40%Pacific Industries 1.20 35%Payson Restaurants 1.35 25%A) 1.0000B) 0.9500C) 1.1375D) 1.1705
Business
1 answer:
alex41 [277]3 years ago
7 0

Answer:

the beta of the portfolio is 1.1375

Explanation:

The computation of the beta of the portfolio is as follows:

= Company beta × portfolio percentage

= 0.95 × 0.40 + 1.20 × 0.35 + 1.35 × 0.25

= 0.38 + 0.42 + 0.3375

= 1.1375

Hence the beta of the portfolio is 1.1375

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

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Crane Company has the following sales data: August September October November December Cash Sales $4000 $5000 $6000 $7000 $16000
umka21 [38]

Answer:

<em>Collections for September is $ 57,100</em>

Explanation:

Computation of cash receipts for September

Collections from cash sales of September                                       $   5,000

Collections from credit sales of August - 57 % of $ 50,000           $  28,500

Collections from credit sales of September 40 % of $ 59,001       <u>$  23,600 </u>  

Total collections for September                                                        $  57,100

5 0
3 years ago
The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the
mr_godi [17]

The question is incomplete. Here is the complete question:

The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s expected return and standard deviation of returns? E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50

State              Prob     E(R)

Boom             10%     40%

Normal           60%     20%

Recession       30%   - 25%

Answer:

The expected return of the stock E(R) is 8.5%.

The standard deviation of the returns is 22.7%

Explanation:

<u>Expected return</u>

The expected return of the stock can be calculated by multiplying the stock's expected return E(R) in each state of economy by the probability of that state.

The expected return E(R) = (0.4 * 0.1)  +  (0.2 * 0.6)  +  (-0.25 * 0.3)

The expected return E(R) = 0.04 + 0.12 -0.075 = 0.085 or 8.5%

<u>Standard Deviation of returns</u>

The standard deviation is a measure of total risk. It measures the volatility of the stock's expected return. The standard deviation (SD) of a stock's return can be calculated by using the following formula:

SD = √(rA - E(R))² * (pA) + (rB - E(R))² * (pB) + ... + (rN - E(R))² * (pN)

Where,

  • rA, rB to rN is the return under event A, B to N.
  • pA, pB to pN is the probability of these events to occur
  • E(R) is the expected return of the stock

Here, the events are the state of economy.

So, SD = √(0.4 - 0.085)² * (0.1) + (0.2 - 0.085)² * (0.6) + (-0.25 - 0.085)² * (0.3)

SD = 0.22699 or 22.699% rounded off to 22.70%

7 0
3 years ago
What role do individuals play in a capitalist system?
VMariaS [17]

Answer:

Explanation:

INCAPITALIST SYSTEM ,INDIVIDUALS ARE KEY BECAUSE THE GOVERMENT DOES NOT CONTROL ECONOMY .ALL ECONOMIC DECISIONS AND ACTIONS ARE CONTROLLED.......

3 0
3 years ago
According to the literature on organizational conflict, constructive conflict Question 1 options: tends to produce beneficial ou
Tom [10]

Answer:

tends to produce beneficial outcomes, particularly better decision making.

Explanation:

Constructive conflict occurs when there are problems that need to be solved by a team in the organization, and thus influence people to cooperate with creative and innovative ideas for solving the problem that can help to produce beneficial results, especially better decisions.

Constructive conflict helps the organization to be more productive by aggregating different ideas about the same problem and focusing on the solution to the resolution, which increases the sense of team integration, participation and understanding of different alternatives that will be improved so that the organization has the best decision making for such a problem.

8 0
3 years ago
What is the pattern of 0.03 , 0.3 , 3 , 30
scoundrel [369]
The answer would be 300
4 0
3 years ago
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