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3 years ago

Under the CMT, the relevant risk to consider with any security is: ___________

Business

1 answer:

geniusboy [140]3 years ago

6 0

Answer:

B) its covariance with the market portfolio

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Security $ Invested Expected Return 1 $5,000 7% 2 $7,000 9% 3 $9,000 12% Give the data above: What is the weight of Security 1?

Snezhnost [94]

Answer:

a) The weight of Security 1 is 23.81%

b) The weight of Security 2 is 33.33%

c) The weight of Security 3 is 42.86%

d) The expected return on the portfolio is 9.81%

Explanation:

Hi, in order to find the weight of each security, we need to use the following formula.

$W(1)=\frac{ValSec(1)}{ValSec(1)+ValSec(2)+ValSec(3)+...ValSec(n)}$

Where:

W(1)= the weight of security 1

ValSec(1,2,3...n)= amount invested in security 1, 2, 3 to n

In other words, the weight of a security in this portfolio is equals to the value invested in this security divided by the sum of all the securities in the portfolio. So, for the weight of the first one, we have to do this:

$W(1)=\frac{5,000}{5,000+7,000+9,000} =0.2381$

The second:

$W(2)=\frac{7,000}{5,000+7,000+9,000} =0.3333$

The third:

$W(3)=\frac{9,000}{5,000+7,000+9,000} =0.4286$

Therefore, the weight of W(1)=23.81%, W(2)=33.33% and W(3)=42.86%

For the expected return on the portfolio, we need to multiply the weight of each security by its return, that is:

$0.07*(0.2381)+0.09*(0.3333=+0.12*(0.4286)=0.0981$

So, the expected return on the portfolio is 9.81%

Best of luck.

5 0

3 years ago

Forte Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as

LUCKY_DIMON [66]

Answer:

a. 10,000 units

Explanation:

The computations of units completed are shown below:

= Beginning work in process units + units started - closing work in process units

= 3,000 units + 11,000 units - 4,000 units

= 10,000 units

For this question, we ignored the equivalent units as the question has asked about the completed units only

So, all other information is irrelevant

6 0

3 years ago

If the fair value of the subsidiary's identifiable net assets exceeds both the book value and the value implied by the purchase

Kazeer [188]

Answer:

Explanation:

debits Difference Between Implied and Book Value

6 0

4 years ago

The theory of ______ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across

IgorLugansk [536]

The answer is; Purchasing Power Parity.

Hope this helped! :)

3 0

3 years ago

A study of the potential demand for a new hospitality and travel business is called______

Murrr4er [49]

Answer:

market analysis

Explanation:

A market analysis is the studies the dynamics of the study market such that of a potential rise in demands for a new hospitality and travel business. The market analysis is also a part of the global environmental analysis.

It identifies the possible strengths and weaknesses along with the opportunities and threats. It areas include market trends, growth probability, and key success factors.

4 0

3 years ago