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zalisa [80]
3 years ago
14

UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 4% and th

e market risk premium is 7%. What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart
Business
1 answer:
Brrunno [24]3 years ago
7 0

Answer:

7.78%

Explanation:

Calculation for the expected return on a portfolio

First step is to calculate the portfolio beta

Portfolio beta=30%*1.1+30%*0.7=1.15

Portfolio beta=0.33+0.21

Portfolio beta=0.54

Now let calculate the expected return using this formula

Expected return=rf+(Portfolio beta*mrp)

Let plug in the formula

Expected return=4%+(0.54*7%)

Expected return=7.78%

Therefore the expected return on a portfolio is 7.78%

You might be interested in
Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn
bulgar [2K]

Answer:

Push strategy

Explanation:

A Push strategy is originated from the push and pull concept in the logistics. This strategy refers to the concept of producers pushing their products into different channels and then those channels will further market and advertise their products. This strategy is one of the various channel strategies that is used by producers.

One of the example would be Walmart which uses push strategy over pull.

I hope the answer is helpful. Thanks for asking.

6 0
3 years ago
Rice is a cheap staple food eaten multiple times of day by many people all over the world. In Trufflelandia, residents also eat
enot [183]

Answer:

Rice is so cheap and truffles are so expansive because D. People eat so much rice that an additional serving of rice has little marginal value, but the marginal value of another serving of truffles is very high.

Explanation:

When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.

5 0
4 years ago
50 pts!!! up for grabs!!!
astraxan [27]

Answer:

thx fpr the 50 bro and can i get brainliest i need one more

Explanation:

7 0
3 years ago
The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and main
MrMuchimi

Answer:

Sarbanes Oxley

Explanation:

The Sarbanes Oxley act was passed in 2002 by the US congress to ensure that senior managers are more accountable by establishing strict accounting and reporting rules.

The Sarbanes Oxley Act created and gave powers to the Public Company Accounting Oversight Board to overlook the activities of the accounting industry. The Act also bans company executives from accessing loans.

Cheers.

4 0
3 years ago
Lenny's Landing has a net Section 1231 gain in the current year of $12,000. In the previous five years, there are $3,000 in unre
Ratling [72]

Answer:

As the $3,000 is unrecaptured losses, it will be carried forward to this year and would be set off against the current year's capital gains.

Explanation:

The previous year unrecaptured loss of $3000 will carried forward and would be set off against the capital gains of $12,000. The gain for the year can be calculated as under:

Capital Gain for the year = Gain Before unrecaptured losses   -  Carried Forward Losses

By putting values, we have:

Capital Gain for the year = $12,000  -  $3,000 = $9,000

The resultant $9,000 would be the capital gain for the year.

7 0
3 years ago
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