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
deff fn [24]
3 years ago
12

Isabel invested in four-stock portfolio; she invested 20 percent of her money in Stock A, 30 percent of her money in Stock B, 25

percent of her money in Stock C, and 25 percent of her money in Stock D. The betas for Stock A, B, C, and D are 0.4, 1.2, 2.5, and 1.75, respectively, and their expected returns are 12 percent, 24 percent, 30 percent, and 28 percent, respectively. What is the beta of Isabel's portfolio
Business
1 answer:
expeople1 [14]3 years ago
5 0

Answer: 1.50

Explanation:

Isabel's portfolio beta is a weighted average of the individual stock betas.

= Weight of stock A * Stock A beta +  Weight of stock B * Stock B beta +  Weight of stock n * Stock n beta

= (20% * 0.4) + (30% * 1.2) + ( 25% * 2.5) + (25% * 1.75)

= 0.08 + 0.36 + 0.625 + 0.4375

= 1.5025

= 1.50

You might be interested in
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and qu
Marysya12 [62]
My thoughts are that this describes competence
6 0
3 years ago
A market-penetration pricing strategy is most suitable when Answer . A) a low price slows down market growth B) production and d
Alik [6]

Answer:

B) production and distribution costs fall with accumulated production experience

Explanation:

A low price may slow down market growth. However, it cannot occur in the market penetration strategy because a market penetration strategy lowers the price to attract customers in a discouraging competitive market. Therefore, option "A" and option "E" is incorrect. As the penetration strategy offers a lower price, therefore, the higher price is nowhere near the option, so "C" is not correct. As the price is low, customers want to buy more, and it is not an inelastic demand. Therefore, the option "D" is wrong also.

As penetration strategy produces the products at a lower price, they can offer low selling prices. It can only happen due to the higher production experience. So, <em>"B"</em> is the right choice.

5 0
3 years ago
What does liquidity refer to?
Andru [333]
The extent to which a market allows assets to be bought and sold at stable prices.
6 0
3 years ago
You own 50 shares of Auto Corporation that you purchased for $30 a share. The stock is currently selling for $50 a share, and yo
timofeeve [1]

Answer: 50%

Explanation:

Purchasing price for each share = $30

Stop loss order placed at $45 for each share.

If the stock price drops to $35, the benefit earned = $ (45-30)= $15

Now, the return on this investment = (benefit earned) ÷(Purchasing price)x 100%

= (15)÷(30)x100%

= 0.5 x 100%

= 50%

So,  your return on this investment = 50%

3 0
3 years ago
*80 points* Introduce a blog owner (a company, organization, or school). Analyze a professional blog owned by a company or by a
frez [133]

Answer: A blog (a truncation of "weblog") is a discussion or informational website published on the ... However, blog owners or authors often moderate and filter online comments to remove hate speech or other offensive content. ... by inventing new ways to navigate through huge amounts of information present in the blogosphere

Explanation: i hope that helps you!

8 0
3 years ago
Other questions:
  • 1. Why might social business be especially useful for global companies?2. What were some of the benefits that IBM social tools c
    7·1 answer
  • Which economic system emphasizes the private ownership of most factors of production
    8·1 answer
  • Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger bu
    9·1 answer
  • Which of the following statements is true of labor cost flows associated with a job-order costing? a.They reflect only indirect
    15·1 answer
  • The balance in the Accumulated Depreciation account represents the:________.
    15·1 answer
  • Bonita Realty Management Co. received a check for $32,400 on August 1, which represents a one year advance payment of rent on an
    8·1 answer
  • Without quality, the firm's products: a. can compete effectively on the basis of low price. b. must be exported to developing co
    11·1 answer
  • How did the US find out about the missiles being set up in Cuba?
    12·1 answer
  • If the MB of polluting increased, then what would happen to the optimal level of pollution? Multiple Choice Print Unsure Decreas
    12·1 answer
  • Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for t
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!