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love history [14]
3 years ago
5

A portfolio is made up of stocks a, b, c, and d in the proportion of 20%, 30%, 25%, and 25% respectively. the nondiversifiable r

isks of the stocks as measured by their betas are 0.4, 1.2, 2.5, and 1.75 for stock a, b, c, and d respectively. the expected returns of the stocks are 12%, 24%, 30%, and 28% respectively. measure the beta of the portfolio.
Business
1 answer:
kow [346]3 years ago
4 0

The portfolio beta would simply be the summation of the weighted average of each beta.

Where weighted average of each beta is calculated as:

Stock weighted average = Stock proportion * Individual beta

Therefore,

Stock A beta weighted average = 0.2 * 0.4 = 0.08

Stock B beta weighted average = 0.3 * 1.2 = 0.36

Stock C beta weighted average = 0.25 * 2.5 = 0.625

Stock D beta weighted average = 0.25 * 1.75 = 0.4375

The summation of all betas yield the overall portfolio beta:

Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375

<span>Portfolio beta = 1.5025 ~ 1.5</span>

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When a wealthy individual invests his or her own money into a business project or start-up company with little intention to infl
kaheart [24]

​The answer is: Angel investor

Angel investors only injected their capital with the businesses if they believe that the leaders are capable in making the decision by their own.

This hands-off approach in investments tend to be reall risky. But Angel investors tend to be wealthy enough to the point where they can afford the financial blow back even if a couple of their start up investments fail.

7 0
4 years ago
one reason a company might prefer FDI over exporting. presence or threat of trade barriers costs of acquiring a foreign enterpri
kkurt [141]

Answer:

Presence or threat of trade barriers

Explanation:

If a company sees that a specific country has a presence or threat of trade barriers, the company will prefer to invest directly in foreign companies, instead of exporting.

This is because trade barriers, like tariffs or import quotas, will likely reduce the potential revenue that the company would get from exporting. It could reduce revenue so much as to make the company lose money.

8 0
3 years ago
State sales tax y is directly proportional to retail price x. an item that sells for 170 dollars has a sales tax of 10.22 dollar
scZoUnD [109]
Im guessing sales tax would be 6.25%?
6 0
3 years ago
A person may have very strong ethics in the way he or she treats family and friends, but not understand how failure to submit ta
Arturiano [62]

Answer: (D) Application of ethics to business situations

Explanation:

 The applications of the business ethics is one of the form of professional ethics in an organization that helps in examine the overall ethical principle and also the moral problems in the environment.

It also helps in governing the actions during the decision making process and also manage the behavior of the person in an organization.

It is also refers to the unwritten principle and the values in an organization that helps managing the company. According to the given question, the application of the business ethics situation is basically encountered by the ethical maturity model.  

Therefore, Option (D) is correct answer.

6 0
3 years ago
Hillary can invest her family savings in two assets: riskless treasury bills or a risky vacation home real estate project on an
galina1969 [7]

Answer:

The expected return on her portfolio is B) 11.8%

Explanation:

Hi, the expected return of a portfolio can be found by multiplying the weight of each of the assets times each of its expected return, that is:

E(portfolio)=E(Tbills)*Weight(Tbills)+E(other)*Weight(other)

So everything should look like this

E(portfolio)=0.04*0.70+0.3*0.3=0.118

The expected return of the portfolio is 11.8%, that is option B)

Best of luck.

7 0
4 years ago
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