you want to compile a portfolio valued at $1,000 which will be invested in stocks a and b plus a risk-free asset. stock a has a beta of 1.2 and stock b has a beta of .7. if you invest $300 in stock a and want a portfolio beta of .9, how much should you invest in stock b?
Answers
You should invest approximately $771.40 in stock b.
To calculate how much you should invest in stock b, we need to use the formula for the portfolio beta. The portfolio beta is the weighted average of the betas of the individual stocks in the portfolio. The formula is:
Portfolio Beta = (Weight of stock a * Beta of stock a) + (Weight of stock b * Beta of stock b)
Let's plug in the given information:
Portfolio Beta = 0.9
Weight of stock a = $300 / $1000 = 0.3 (since you're investing $300 out of $1000)
Beta of stock a = 1.2
Beta of stock b = 0.7
Now, we can rearrange the formula to solve for the weight of stock b:
0.9 = (0.3 * 1.2) + (Weight of stock b * 0.7)
Rearranging the equation:
0.9 - (0.3 * 1.2) = Weight of stock b * 0.7
0.9 - 0.36 = Weight of stock b * 0.7
0.54 = Weight of stock b * 0.7
Divide both sides by 0.7:
0.54 / 0.7 = Weight of stock b
0.7714 = Weight of stock b
To find the amount you should invest in stock b, multiply the weight by the total portfolio value:
Amount to invest in stock b = 0.7714 * $1000 = $771.40
To know more about invest:
https://brainly.com/question/21617407
#SPJ11
Related Questions
Stephen owns a chemical plant. He is glad that his primary stakeholders are satisfied with the company's growth. However, he is concerned about pleasing the secondary stakeholders. How can he ensure the welfare of secondary stakeholders?
Answers
Answer: D. use a manufacturing process that is compliant with all state and federal regulations.
Explanation:
The options to the question are:
a. pay less taxes
b. substitute the existing labor power with machines
c. double the output of the manufacturing process by asking workers to work overtime
d. use a manufacturing process that is compliant with all state and federal regulations
e. organize picnics for employees
Since Stephen wants to ensure the welfare of secondary stakeholders, he should use a manufacturing process that is compliant with all state and federal regulations
The secondary stakeholders are the individuals or entities that the company doesn't have direct economic transactions with e.g. the government, environmental groups, media etc.
Therefore, to please the secondary stakeholders, he must abide to the necessary rules and regulations.
If a bank protected by the FDIC fails, then all of the individuals who have deposited money into the bank _____. a. Are restricted from ever using a bank again b. Will be reimbursed by the federal government c. Have lost all of their money and savings forever d. Become members of the Federal Reserve Bank
Answers
If a bank protected by the FDIC (Federal Deposit Insurance Corporation) fails, then all of the individuals who have deposited money into the bank will be reimbursed by the federal government.
The FDIC is an independent agency of the federal government that provides deposit insurance to protect depositors in case a bank or savings institution fails. The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
If a bank fails and is unable to return deposits to its customers, the FDIC steps in to pay depositors up to the insured amount. This means that the individuals who have deposited money into the bank will not lose their money, as long as it is within the insured amount.
My last points to help you.
Answers
Answer:
Thank you, I can help you too dear :)
Explanation:
Answer:)
Explanation:
Why is it important for public corporations to comply with audits
Answers
Answer:
Explanation:
Accounting and auditing professionals serve an absolutely vital role in our capital markets. Transparent, informative and accurate financial reporting are the lifeblood of the capital markets and are essential for investors to make informed decisions as to how to allocate their capital.
If the volume sold reacts strongly to changes in price, demand: Select one: a. has no elasticity. b. has negative elasticity. c. is unrealistic. d. is elastic. e. is inelastic
Answers
If the volume sold reacts strongly to changes in price, it indicates that the demand is responsive to price changes. This concept is known as elasticity of demand.
To determine the elasticity of demand, we look at how much the quantity demanded changes in response to a change in price. If the volume sold changes significantly in response to a small change in price, then demand is said to be elastic. On the other hand, if the volume sold changes minimally in response to a large change in price, then demand is said to be inelastic.
In this case, since the volume sold reacts strongly to changes in price, we can conclude that the demand is elastic. This means that demand is sensitive to price changes, and a small change in price will result in a relatively larger change in the quantity demanded.
To know more about elasticity visit:
https://brainly.com/question/33883184
#SPJ11
Select the correct answer. Under which market structure does the action of one company have a spillover effect on other companies’ decisions?
A. oligopoly
B. perfect competition
C. monopoly
D. monopolistic competition
Answers
Answer:
A. oligopoly
Explanation:
a state of limited competition, in which a market is shared by a small number of producers or sellers.
Under oligopoly, the action of one company has a spillover effect on other companies’ decisions. Thus, option A is the correct option.
What is a company?A company can be defined as an institution who makes a product or service and sells it or endorse it in the market to earn revenue.
When there is any change or shift in the market with respect to any sort of commodity than that effect goes on to another product which can be considered as a substitutional product is called as oligopoly.
For example, in the case of a cold drink if one cold drinks prices increases or the demand decreases then people start to prefer to another call ring that can be considered as it substitute product this system can be referred to as an oligopoly. Therefore, option A is the correct option.
Learn more about the company, here:
https://brainly.com/question/20354514
#SPJ2
do this document and I will give you 100 points send it back to me completed all the directions are on here.
Answers
Answer:
I like chicken
Explanation:
You've been meaning to fix those rotted boards on your porch for years. Finally, last week the deck gave way. The replacement will cost you $3,000. Will you be able to recover the cost of replacement (less your deductible) from your homeowner's insurance?
Answers
We will not be able to recover the cost of replacement (less deductible) from the homeowner's insurance policy.
What is homeowner's insurance?This is an insurance that provide cover on the insured's home's structure and belongings in the event of a destructive event such as a fire, storm, hurricane, lighting, flood etc
A natural destruction resulting from a wear and tear is not covered under the homeowner's insurance.
Therefore, you will not be able to recover the cost of replacement from the homeowner's insurance policy.
Read more about homeowner insurance
brainly.com/question/1973043
I need help asapppppp!
Answers
5. The role of government in a market system
a. does not exist
b. is restricted to establishing property rights
C. includes improving situations that would otherwise result in a market failure
d. includes improving on situations that would otherwise result in a government failure
Answers
Chevron's 52,000 employees work for thirteen major operating companies in 180 countries. Each national unit does business according to the needs of its market. Effective management of human resources in such a complex environment is an enormous task, and the key to success is reliable, accurate management information. Thus, Chevron developed an online human resources information system, which is a critical tool in managing its human resources. As expected, one of the broad goals of the human resources information system is to help management a. prepare specific job or position descriptions. b. develop a replacement chart. c. utilize human resources efficiently to meet organizational goals. d. send greetings to employees on their birthdays. e. write a job specification for the computer programmer.
Answers
Answer:
C
Explanation:
Human resources information system is defined as an information system that is used to collect analyze and process data to aid easy administration of the human resources function in an organization . It makes use of database and computer software and hardware for this purpose .
the overall aim is to utilize human resources efficiently to meet organizational goals
the better business council of a large city has concluded that students in the city's schools are not learning enought about economics
Answers
The Better Business Council of a large city has identified a concern that students in the city's schools are not acquiring sufficient knowledge about economics.
The Better Business Council's conclusion suggests that there is a perceived gap in the economics education of students within the city's schools. This observation could arise from various factors, such as inadequate curriculum coverage, limited resources, or teaching methods that may not effectively engage students in learning economics.
Economics education is crucial for preparing students to understand and navigate the complex economic systems they will encounter in their lives and careers. A lack of economics knowledge can have long-term implications for individuals and society, as it may hinder their ability to make informed financial decisions, participate in the economy, and contribute to economic growth.
To address this issue, the Better Business Council could advocate for improvements in economics curriculum, teacher training, and the allocation of resources to enhance the quality of economics education in schools. Collaboration between educators, policymakers, and business leaders may be necessary to develop effective strategies and initiatives that promote a better understanding of economics among students, empowering them with essential knowledge and skills for their future success.
Learn more about economic growth here: brainly.com/question/33142012
#SPJ11
Which of these is NOT a concern for consumers in times of inflation?
a.They cannot anticipate the cost of goods and services.
b.They lose money on their investments and savings.
c.They are at a disadvantage when paying back borrowed money.
d.They struggle when they are on a fixed income.
Answers
Answer: D
Explanation:
Sean’s mother had to make an emergency purchase of a new tire because her tire went flat while she was traveling to the store. She is not sure how much money she has in her checking account. Which method of payment should she use to be financially responsible?
She should pay by telephone with her debit card.
She should pay with a debit card.
She should pay with a credit card.
She should pay with a check.
Answers
Answer:
c. She should pay with a credit card.
Explanation:
Credit cards are basically loans that the banks give to the customer to use and pay back before the due date.
Now if Sean's mother does not know how much money she has, she must use the credit card because to be financially responsible and pay the type services their due amount.
Later she can check her account details and make payments to the bank as per requirement.
Explanation:
The most financially responsible option for Sean's mother would be to pay with a debit card. The correct option is B.
Why debit card is better than cash?You can carry out purchases using a debit card rather than scrambling for cash, looking through your pockets or handbag for exact change, writing a check, or visiting an ATM. It's also more convenient than ever thanks to the increase in companies accepting debit card payments.
This is because a debit card transaction deducts the payment directly from her checking account, so she can only spend the money she actually has available. This can help her avoid overspending or going into debt.
Paying by telephone is also a convenient option, but it is important for Sean's mother to make sure she is using a secure and trusted payment system to protect her personal and financial information.
Using a credit card or writing a check are also options, but they may not be as financially responsible in this situation. With a credit card, Sean's mother would be borrowing money and may incur interest charges if she doesn't pay the balance in full. Writing a check may take longer to process and may not be accepted by all tire shops.
Thus, the ideal selection is option B.
Learn more about Debit Card here:
https://brainly.com/question/27934503
#SPJ7
Which of the following is NOT a component of the promotional mix? Select one: a. Personal selling b. Sales Promotion c. Public Relations d. Advertising
Answers
All four (Personal selling,Sales Promotion , Public Relations and Advertising ) are the component of the promotional mix.
What is a promotional mix?A promotional mix is a combination of marketing strategies, such as direct marketing, sales, public relations, and advertising, to accomplish a certain marketing objective.
What is the importance of promotion mix in marketing?The role of promotion in the marketing mix is crucial since it increases consumer awareness of your company's name and its goods by focusing on the correct demographic of customers. Consequently, there will be more demand in the market, which will enhance sales for your business.
To know more about Promotional mix visit;
https://brainly.com/question/28304531
#SPJ4
Which of the following is an example of a game where the customer can choose their own numbers
Answers
The game where players are allowed to pick their own numbers is the game of Mega-Millions.
What is Mega-Millions?This is a type of lottery game that is available in several countries around the world and involves players picking certain numbers to stand a chance to win some money.
The players get to choose the numbers they believe will be lucky and then there is a draw. If their numbers are selected, they stand a chance to win.
Options for this question were:
a. Quick Pick game.
b. Mega Millions.
c. Instant Scratch-Off game.
Find out more on Mega-Millions at https://brainly.com/question/26836245.
A salesperson receives a base salary of $1,200 per month plus a commission of 6 percent on each sale. The following sales were made this month:
Sale 1 $6,500
Sale 2 $10,320
Sale 3 $700
Sale 4 $1,180
Sale 5 $29,000
Calculate this month's total carnings.
Answers
Answer:
$4062
Explanation:
base salary of $1,200
+ 6% of each sale
so $1,200 + $390 + $619.20 + $42 + $70.80 + $1,740
=$4062
This month's total earnings for the salesperson are $4,062.
To calculate the salesperson's total earnings for the month, we need to calculate the commission for each sale and then sum it up along with the base salary.
Base Salary = $1,200 per month
Commission = 6% on each sale
Let's calculate the commission for each sale:
Commission for Sale 1 = 6% of $6,500
= 0.06 * $6,500
= $390
Commission for Sale 2 = 6% of $10,320
= 0.06 * $10,320
= $619.20
Commission for Sale 3 = 6% of $700
= 0.06 * $700
= $42
Commission for Sale 4 = 6% of $1,180
= 0.06 * $1,180
= $70.80
Commission for Sale 5 = 6% of $29,000
= 0.06 * $29,000
= $1,740
Now, let's calculate the total commission earned:
Total Commission = $390 + $619.20 + $42 + $70.80 + $1,740
= $2,862
Finally, let's calculate the total earnings:
Total Earnings = Base Salary + Total Commission
= $1,200 + $2,862
= $4,062
Therefore, this month's total earnings for the salesperson are $4,062.
Learn more about commission here:
https://brainly.com/question/29185783
#SPJ3
In order to reduce the possibility that a technological paradigm shift will render your skills obsolete, you should
a. Encourage others to keep their skill sets current
b. Try to keep your company from adopting new technology
C. Keep tabs on the newest technical advances
d. Adopt a technology proof career, like carpentry
Answers
Answer:
a. Encourage others to keep their skill sets current
b. Try to keep your company from adopting new technology
Explanation:
Continuous updating and upgrading one's skills is a sure way of remaining relevant in a rapidly changing work environment. Many organizations are always seeking ways of modernizing their work processes. As companies adopt technology to enjoy increased efficiency, workers without matching skills are declared redundant.
Continuous training and learning are necessary to reduce the possibility of one's skill being declared obsolete. To survive in the new technology era, a worker and his colleagues can embrace and learn to work with new technology or work hard to prevent their company from acquiring it.
Answer:
c.
Keep tabs on the newest technical advances
Explanation: CORRECT ON EDGE 2021
A good manager: A. gives advice freely and frequently. B. is more result-oriented than relationship-oriented. C. has a judger mind-set and low self-awareness. D. schedules time for listening to employees each day. E. believes that listening too much is a sign of indecisiveness.
Answers
Answer:
B.
Explanation:
If you're asking a good manager that keeps the busniess running the answer is B because he would get the best money results.
If you mean the best manager because CO-workers like him the answer is A, but I don't think that's what you're asking so the answer is most likely B.
IF THE ANSWER IS SELECT ALL THAT APPLY,
-A
-B
-D
Scenario: NewTel, Inc.
NewTel is a telephone company with a policy of filling positions internally, through promotions, rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service-oriented. As a result, four people were hired last year from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because current employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. The conflict episodes are viewed by both sides as personal attacks rather than attempts to resolve the problem.
The four new hires’ attempt to have the company put more money into marketing and customer services instead of technology investment. This is mainly an example of conflict due to:
A. role ambiguity.
B. lack of communication.
C. sequential task interdependence.
D. overt behaviors.
E. goal incompatibility.
Answers
Answer:
E. goal incompatibility.
Explanation:
Analyzing the scenario above, it is possible to see that the cause of the conflict is due to incompatibility of goals, that is, there are different objectives and goals between the teams and organizational departments, which causes a lack of consensus that culminates in the conflict.
This is a negative situation for the company, which is a set of systems that must operate in favor of the same objectives and goals. in order to listen to all the parties involved, and then start from a principle where everyone feels heard and integrated in the development of organizational goals, creating an environment of trust and positive relationship in the company.
if the foreign exchange rate is the price in foreign currency for a dollar, then the exchange rate quotes is called
Answers
If the foreign exchange rate is the cost of buying a dollar in a foreign currency, the exchange rate quote is known to as an indirect quote.
What is meant by foreign exchange rate?The rate at which one currency can be converted into another is known as the foreign exchange rate. Currency pairs are always traded on the foreign exchange market, and exchange rates always involve two different currencies. Almost 90% of all currency exchanges in 2019 involved the U.S. dollar, according to data from the Bank for International Settlements, a financial organization that serves as a bank to central banks all around the world.
Currency rate adjustments can have a significant impact on the investment power of various markets because businesses are establishing larger international relationships and investors. Investors must understand how their investment will alter as their currency fluctuates. Multinational corporations often prepare all of their financial statements in a single reporting currency. For instance, US businesses must generate a balance sheet, an income statement, and other reports in US dollars.
To learn more about foreign exchange rate refer to:
https://brainly.com/question/2202418
#SPJ4
Self-assessments must always be formalized instruments of
measurement.
O True
O False
Answers
Answer:
true I believe I'm not completely sure though
Explanation:
What should you do when you have multiple goals that conflict with each other?
Answers
Choose all that apply. The mortgage payment includes _____. taxes principal interest escrow PMI homeowner’s insurance
Answers
Answer:
taxes, principal interest, homeowner´s insurance.
Explanation:
Mortgage payments include four parts called PITI, Principal, which is the normal payment of the loan, or the payment needed that is debited to the loan, then the taxes, the interests, and the homeowners insurance, this 4 elements make up for the main monthly payments.
The mortgage payment includes taxes, principal interest, and homeowner’s insurance. The correct options are a, b, and d.
Taxes, principal interest, as well as homeowner's insurance are a few of the items included in the mortgage payment.
1. Taxes: A portion of the mortgage payment is towards property taxes, which typically go to the local government. Schools, roads, and essential services are just a few of the public services that are supported by these levies. 2. Principal and interest: The principal borrowed and the interest accrued by the lender are both paid back with a portion of your mortgage payment. The initial sum of money borrowed to buy the house is known as the principal, and the cost of borrowing the funds is known as the interest.
3. Homeowner's insurance: This sort of insurance shields you and your possessions against harm or loss brought on by calamities like fire, theft, or natural catastrophes. Your monthly mortgage payment includes a percentage for this insurance.
Learn more about payment, here:
https://brainly.com/question/32240326
#SPJ4
29.) suppose it is january 1990 and the current spot rate for the dm is $0.5925. the call premium on a call option with an exercise price of $0.5675 is $0.0373. what is the intrinsic value of one dm 62,500 call option? a) $2,331.25 b) $1,562.50 c) $950.00 d) $768.75
Answers
The intrinsic value of one DM 62,500 call option with an exercise price of $0.5675 is $1,562.50. Thus, correct option is (b).
The intrinsic value of a call option is determined by the difference between the spot rate and the exercise price. In this case, the exercise price is $0.5675, and the spot rate is $0.5925. The intrinsic value is calculated by subtracting the exercise price from the spot rate.
Therefore, the intrinsic value of the call option is $0.5925 - $0.5675 = $0.025. To determine the total intrinsic value of the option, this value is multiplied by the option's contract size of DM 62,500, resulting in $1,562.50. Hence, the correct answer is b) $1,562.50.
To know more about intrinsic value here https://brainly.com/question/30764018
#SPJ4
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, jia typically leaves a 20% tip, and an uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend’s company and is willing to pay $30 just to spend an evening with her. If jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
Required:
a. Calculate jays cost associated with going out to dinner with her friend.
b. Calculate jays benefits associated with going out to dinner with her friend.
Answers
Jia cost & benefit associated with going out to dinner is $58 and $63 respectively.
Basically, the calculation is about getting the amount that Jia spent and benefit during the dinner with her friend.
Calculation of Jia's cost
The cost includes expected cost of $40 for meal, $8 for tip (20%*$40) and $10 for Uber transport (To and fro)
= $40 + $8 + $10
= $58
In conclusion, Jay's cost associated with going out to dinner with her friend is $58.
Calculation of Jia's benefit
The benefit of the dinner includes $25 for meal valuation, amount of spending an evening with her ($30) and the $8 that she will spend if he doesn't go for dinner
= $25 + $30 + $8
= $63
In conclusion, Jay's benefit associated with going out to dinner with her friend is $63.
See similar answer here
brainly.com/question/21122864
1. True or False: If you stop using
your credit card for purchases,
you won't ever have to pay
interest again.
Answers
The statement is False. If you have an outstanding balance on your credit card, you will continue to accrue interest on that balance even if you stop using the card for purchases.
The outstanding balance refers to the amount of money owed by a customer to a company for products or services that have been provided but not yet paid for. It is the unpaid portion of an invoice or account balance that remains outstanding beyond the due date.
For businesses, outstanding balances can impact cash flow and can cause financial strain if not managed properly. Companies need to track and manage outstanding balances to ensure they are collecting payments from their customers in a timely manner. This can involve sending reminders or follow-up notices to customers who have not paid their invoices, as well as working with customers to establish payment plans or negotiate settlements for outstanding balances.
To learn more about outstanding balance visit here:
brainly.com/question/30874043
#SPJ4
Question 19 of 40
When an organization makes payment to the government for payroll taxes,
the payment is journalized as
A. Accounts Payable
B. Expenses
C. Accounts Receivable
D. Cash
Answers
Answer:
B
Explanation:
B
Answer:
D. Cash
Explanation:
j took the exam
Where can water in the atmosphere come from? Select all possible answers.
A. oceans. B. plants. C. ice. D. puddles
Answers
Answer: A. It comes from oceans
• Lack of financial security
• Difficulty in securing variety of financial services
• Increased financial costs
Who is being described?
A)
travelers
B)
immigrants
o
unbanked people
D
undocumented workers
Answers
Answer:
Unbanked people
Explanation: