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Natasha2012 [34]
3 years ago
14

You own a portfolio that has a total value of $210,000 and it is invested in Stock D with a beta of .87 and Stock E with a beta

of 1.38. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D
Business
1 answer:
Crazy boy [7]3 years ago
6 0

Answer:

The dollar amount of the investment in Stock D is (x=$156470.59)

Explanation:

Let assume investment in Stock D = $x

Hence investment in Stock E = (210,000-x)

Portfolio beta=Respective betas * Respective investment weights

1= (x/210,000*0.87)  + (210,000-x) /210,000*1.38[Beta of market=1]

(1*210,000) = 0.87x + 289800 -1.38x

290,000=0.87x+289800-1.38x

Hence x=(289800-210,000)/(1.38-0.87)

x= 79,800 / 0.51

x=156470.5882

x=$156470.59

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Match the financial institutions with the features.
tensa zangetsu [6.8K]

Answer:

Commercial Bank > Offers checking accounts

Financial service company > Offers high-risk loans

Savings and loan association > Provides home mortgages

Credit union > Is owned by its members

Explanation:

1. Commercial Bank > Offers checking accounts

Commercial bank is a financial organization which accepts deposits, offers varieties of products including checking accounts, and provides loans to the public and enterprises.

2. Financial service company > Offers high-risk loans

When a company looks to develop economic growth through the use of money supply from the savings accounts of people, and offers risky loans, that company is said to be a financial service company.

3. Savings and loan association > Provides home mortgages

When an institution acts like a bank by not being a banking institution, and provides mortgages, it is coined as savings and loan association.

4. Credit union > Is owned by its members

Member-based financially operated organizations which helps people to provide financial services like non-risky loans and deposits, that is termed as credit union.

4 0
3 years ago
Which herbs are useful from cosmetic point of view ? also name the products made from them<br>​
Tcecarenko [31]
Aloe Vera is a very common item found in cosmetics. Such items as body lotions, creams, sunscreen, serums, and moisturizers all use aloe vera!
8 0
2 years ago
Why is a mixed economy not considered a major economic system along with free enterprise and socialism?
Dahasolnce [82]
Mixed<span> economy is not considered a major economic system along with free enterprise and socialism because the features of these economy are exactly the same with some of the features of free enterprise and socialism. Basically, this type of economic system is just a combination of the features of the free enterprise and socialism.</span><span> </span>
5 0
3 years ago
Boris works for Nefarious Corp. Boris's job is to steal genetic engineering trade secrets from the Gentle Lamb Company. He does
disa [49]

Answer:

Industrial spy; tool.

Explanation:

An industrial spy refers to an individual who is saddled with the responsibility of covert and an illegal theft of data (informations) such as business trade secrets and other sensitive data, for use by its principal in order to give them a competitive advantage in the industry. Thus, the activities or actions performed by an industrial spy is generally considered to be unethical and may be punishable with an appropriate legal instrument.

In this scenario, Boris works for Nefarious Corp and his job is to steal genetic engineering trade secrets from the Gentle Lamb Company. Boris does this by dating employees of Gentle Lamb Company and stealing their access information (e.g., logon and password).

Hence, Boris is an industrial spy who uses the computer system as a tool.

A tool refers to the device that is being used by a spy to gain an unauthorized access to other people's data (informations).

5 0
3 years ago
Eagle Company reported Salaries and Wages Payable of $1,500 at the beginning of the year and $5,000 at the end of the year. The
ivanzaharov [21]

<u>Given:</u>

Wages payable at the beginning of the year = $1500

Wages payable at the end of the year = $5000

Salaries and wages expense as per the income statement = $112400

<u>To find:</u>

Cash paid for salaries and wages

<u>Solution:</u>

The calculation of the cash paid for salaries and wages is as follows,

Wages payable at the end of the year-Wages payable at the beginning of the year = \$5000-\$1500=\$3500

Cash paid = \$112400-\$3500=\$1,08,900

Therefore, the cash paid for salaries and wages during the year is $1,08,900.

Wages and salaries are paid by the organization or management to the workers or the employees in return for the work done by them for the company.

3 0
4 years ago
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