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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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The burlington company has 12,000 units in beginning finished goods. if sales are expected to be 60,000 units for the year and b
andreev551 [17]
The choices are; 
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Question
</span><span>How many units must Burlington produce

Given
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</span><span>60,000 units expected production for the year
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Solution
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3 years ago
Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned
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2 years ago
Bruce borrowed $1,000 for his trip. If bruce waits for five years to begin paying back his loan, how much will he owe?.
adoni [48]

Answer:

$1,610.51

Explanation:

The complete question is

Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The loan compounds once each year.  When you calculate Bruce's debt, be sure to use the formula for annual compound interest.

Bruce borrowed $1,000 for his trip.

If Bruce waits for five years to begin paying back his loan, how much will he owe?

we know that    

The compound interest formula is equal to  

 

where  

A is the Final amount owed  

P is the amount of money borrowed  

r is the rate of interest  in decimal

t is Number of Time Periods  

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in this problem we have  

 

substitute in the formula above  

 

 

 

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C, Dancing. Have a good rest of your day!!
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labwork [276]

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