Answer:
The beta of the portfolio is 1.22
Explanation:
In calculating the beta of the whole portfolio, we can calculate the weighted average beta of each stock .The sum of all weighted betas give the beta of the entire portfolio.
Beta of portfolio=amounted in first stock/entire amount invested*beta of the first+amount invested in second stock/entire amount invested *beta of the second stock
Beta of portfolio=($32000/($32000+$42000))*1.1+($48000/($32000+$48000))*1.3
Beta of portfolio=1.22
Answer:
The person with Absolute advantage is the one that produces more of a good than the other.
<em><u>Dina </u></em><em>has an absolute advantage in the production of alfalfa, and </em><em><u>Charles</u></em><em> has an absolute advantage in the production of barley. </em>
The person with Comparative Advantage is the person who produces something at a lower opportunity cost.
Charles Opportunity Costs
Producing Alfalfa gives 12 bushels per acre instead of 6 bushels for Barley.
Producing 1 Alfalfa means 6/12 = 0.5 bushels Barley is given up
Producing 1 bushel of Barley means 12/6 = 2 bushels Alfalfa is given up.
Dina Opportunity Costs
Producing Alfalfa gives 15 bushels per acre instead of 5 bushels for Barley.
Producing 1 Alfalfa means 5/15 = 0.33 bushels of Barley is given up
Producing 1 bushel of Barley means 15/5 = 3 bushels of Alfalfa is given up.
<em>Charles's opportunity cost of producing 1 bushel of barley is </em><em><u>2</u></em><em> bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is </em><em><u>3</u></em><em> bushels of alfalfa. Because Charles has </em><em><u>lower</u></em><em> a opportunity cost of producing barley than Dina, </em><em><u>Charlie</u></em><em> has a comparative advantage in the production of barley, and </em><em><u>Dina</u></em><em> has a comparative advantage in the production of alfalfa.</em>
Answer: 8%
Explanation:
The expected return is a weighted average of the returns given the probability of certain states of the economy:
= (Prob. of boom * return if boom) + (Prob. of normal * return if normal) + (Prob. of weak * return if weak)
= (20% * 35%) + (50% * 14%) + (30% * -20%)
= 0.07 + 0.07 - 0.06
= 8%
Answer:
appurtenant
Explanation:
This is like the right over someone's land for a specific reason or purpose.
It is legal and it is an easement where the right of use is attached to the land itself. The property that benefits from the easement is known as the dominant estate (which is Martin), while the property that is burdened by the easement is known as the servient estate (which is Carl) because it serves the dominant estate.
Answer:
just a business
Explanation:
cuz business can help you in the future...