Question content area top Part 1 (Portfolio beta and
CAPM) You are putting together a portfolio made up of four
different stocks. However, you are considering two possible
weightings
Answers
Portfolio beta is a measure of the volatility of a portfolio in relation to the overall market. It is calculated by taking the covariance of the portfolio's returns with the returns of the market index, and dividing it by the market's volatility, which is typically represented by the beta of the market index.
The Capital Asset Pricing Model (CAPM) is a financial model that helps investors determine the expected return on an investment based on its risk. It assumes that the return on a risk-free asset (such as a government bond) is known, and that the expected return on any other asset can be calculated as the risk-free rate plus a risk premium.
In the context of the question, it is unclear what the two possible weightings refer to. If the question is asking about how to choose between two different portfolios, the answer would depend on the specific characteristics and risk levels of the individual stocks in each portfolio.
To determine the beta of a portfolio, you would need to calculate the covariance between the portfolio's returns and the returns of the market index, and then divide that by the market's volatility. The beta of the market index would typically be obtained from historical data.
Once you have calculated the beta of the portfolio, you can use the CAPM to determine the expected return on the portfolio. This would involve multiplying the portfolio's beta by the risk-free rate, and adding any expected return premium based on the portfolio's risk level.
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Related Questions
Originated by frederick brooks, what term describes the situation that is caused by the increased complexity of communications that result from adding more people to a project?.
Answers
Brooks' Law refers to a well-known software development principle coined by Fred Brooks in The Mythical Man-Month. The law, “Adding manpower to a late software project makes it later,” states that when a person is added to a project team.
Software development is the process of envisioning, specifying, designing, programming, documenting, testing, and debugging that involves building and maintaining an application, framework, or another software component.
Software development refers to a set of computer science activities dedicated to the process of creating, designing, deploying, and supporting software. The software itself is a set of instructions or programs that tell a computer what to do. It is hardware independent and makes your computer programmable. There are many types of software that a computer can run, including system software, utilities, and application software.Learn more about software development here: https://brainly.com/question/26872062
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Mcafee and brynjolfsson say that _____ is one of the earliest examples of fully-automated decision making.
Answers
Answer:
credit scores
Explanation:
McAfee and brynjolfsson say that credit scores are one of the earliest examples of fully-automated decision-making.
What is credit score?A credit score, which ranges from 300 to 850, represents a person's creditworthiness. A person's credit score is based on their total amount owed, length of credit history, types of loans, and history of loan repayment.
Despite the fact that ranges vary depending on the credit scoring methodology, credit scores between 580 and 669 are typically regarded as fair, 670 to 739 as good, 740 to 799 as very good, and 800 and higher than extraordinary.
Person's credit score indicates how likely you are to make loan payments on schedule. A scoring system uses information from the credit report to produce the credit score.
Thus, it is a credit score.
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Which of these steps uses a third party as part of the conflict-resolution effort?
compromising
defining the problem
mediation
arbitration
Answers
Answer:
Mediation
Explanation:
Because there is misunderstanding,mediation is done because it is the act of resolving problem( also known as arbitration)
Answer:
mediation and arbitration
Explanation:
got a 100 on my quiz
Bird Enterprises has no debt. Its current total value is $48 million. Assume debt proceeds are used to repurchase equity. a. Ignoring taxes, what will the company’s value be if it sells $18.9 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, round your answer to the nearest whole number, e.g., 1,234,567.) b. Suppose now that the company’s tax rate is 25 percent. What will its overall value be if it sells $18.9 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Answers
If Bird Enterprises sells $18.9 million in debt and ignores taxes, its value will increase to $66 million.
Currently, Bird Enterprises' total value is $48 million, and it has no debt. If it sells $18.9 million in debt, this will increase its value. To calculate the new value, we can use the formula:
New Value = Current Value + Debt Proceeds
New Value = $48 million + $18.9 million
New Value = $66.9 million
However, we need to round the answer to the nearest whole number, so the new value will be $66 million.
Now, if we consider taxes, the new value will be different. If the company's tax rate is 25%, it will have to pay taxes on the interest payments it makes on the debt. To calculate the new value, we can use the formula:
New Value = Current Value + (Debt Proceeds x (1 - Tax Rate))
New Value = $48 million + ($18.9 million x (1 - 0.25))
New Value = $48 million + $14.175 million
New Value = $62.175 million
Rounding the answer to the nearest whole number, the new value will be $62 million. So, with taxes taken into account, Bird Enterprises' value will increase to $62 million if it sells $18.9 million in debt.
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Outsourcing is becoming more and more common, but it is a controversial idea in the United States. Why do you think this is such a highly contested idea? Do you think outsourcing is a good idea or a bad one? Explain the reasons for your answer.
Answers
Answer:
Outsourcing is a contested idea because the original company loses control of the job they are trying to complete. Outsourcing is a bad idea because it also causes jobs to be lost. (you might want to change the wording a bit.)
Explanation:
A period during which aggregate output rises is known as a(n)
Answers
It is known as expansion.
A product's life cycle is the period of time from when it is initially made available to consumers until it is discontinued. Introduction, expansion, maturity, and decline are the four stages that make up a product's life cycle.
Professionals in management and marketing utilize product life cycles to assist them decide on advertising schedules, pricing points, expanding into new product markets, redesigning packaging, and more. Product life cycle management refers to these strategic means of a product's support. They can also help determine when the newer products are ready to push the older ones from the market.
Therefore, the answer is expansion.
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Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply
Answers
They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply
1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 19%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%?
Answers
Answer:
the information about the company's income statement is missing, so I looked for a similar question (see attached image):
current contribution margin per unit = $3
current sales volume = 44,000 units
fixed expenses = $46,000
1. What is the revised net operating income if unit sales increase by 12%?
[(44,000 x 1.12) x $3] - $46,000 = $101,8402. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 19%?
[(44,000 x 1.19) x $1.70] - $46,000 = $43,012
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%?
[(44,000 x 0.93) x $4.30] - $52,000 = $123,9564. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%?
[(44,000 x 0.87) x $4.60] - $46,000 = $130,088
A+municipal+bond+carries+a+coupon+rate+of+2.5%+and+is+trading+at+par.+what+would+be+the+equivalent+taxable+yield+of+this+bond+to+a+taxpayer+in+a+35%+tax+bracket?
Answers
A municipal bond has a coupon rate of 6 3/4% and is currently trading at par. This bond's comparable taxable yield to a taxpayer in the 35% tax bracket is .1038
Equivalent taxable yield = rate on municipal bond/ 1 - tax rate
= .0675/1-0.35
= .1038
Taxpayer:
A taxpayer is a person or entity (such as a business) who is required to pay a tax. Modern taxpayers may have an identification number, which is a reference number issued by the government to individuals or businesses. The phrase "taxpayer" often refers to someone who pays taxes. A taxpayer is an individual or company who is required to pay municipal or government taxes agencies.
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A corporation announces a dividend of $.10 per share. If you own 1,500 shares of stock, how much money in dividends will you receive?
Answers
$150 money in dividends will you receive. That is $.10 per stock *1,500 shares= $150.The total of a company's declared dividends issued for each outstanding investors share of its common stock is known as the dividend per share (DPS).
The amount is determined by dividing the total dividends paid out by a company over a period of time, typically a year, including interim dividends, by the total number of outstanding ordinary shares issued. DPS is a crucial statistic for investors since the amount of dividends a company pays out directly translates to shareholder income. It is the simplest calculation an investor may uses.
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Pro-Racquets has a bill of lading for an order of 10,000 tennis rackets it will be exporting to a foreign distributor. The company takes this bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor. In this situation, the bill of lading is being used as _______.
Answers
Answer:
A security
Explanation:
A security is defined as an item that holds financial value and represents ownership of a property by the holder. It is used as a means of gaining some financial assistance.
The security acts something a creditor can use to get back their money in case the debtor fails to pay up.
In this case Pro-Racket takes the bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor.
The Bill of lading here has been used as a security to obtain a loan from the bank
If the MPC = 0.80, the total change in spending resulting from an initial $500 decrease in aggregate spending will be Select one: A. $833. B. $2500. C. $800. D. $300.
Answers
If the MPC = 0.80, the total change in spending resulting from an initial $500 decrease in aggregate spending will be $833. The correct answer is option a.
This is because the MPC (marginal propensity to consume) is 0.80, meaning that for every $1 decrease in aggregate spending, consumers will reduce their spending by $0.80 and save $0.20.
Therefore, an initial $500 decrease in aggregate spending will lead to a total decrease in consumption of $500 x 0.80 = $400. However, this decrease in consumption will also lead to a decrease in income for producers, which in turn will lead to further decreases in consumption.
Using the multiplier formula (1/MPC), we can calculate the total change in spending as:
1/0.80 x $400 = $500
So the total change in spending resulting from an initial $500 decrease in aggregate spending will be $833 ($500 decrease in consumption plus $333 decrease in investment and other spending).
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Manuel operates equipment that moves natural gas through pipelines. Manuel is a Gas Compressor. Pipefitter. Power Dispatcher. Surveyor.
Answers
Answer:
Gas Compressor Operator
Explanation:
A gas compressor operator works with steam or internal combustion engines to compress and transmit gases through pipelines.
He or she directs various control nodes and adjust valves in the compressor engines, pumps, and other related equipment. They monitor pressure, temperature gauges, and other safety components to ensure the safe passage of gases in the pipelines.
Answer:
A gas person
Explanation:
the fasb’s conceptual framework’s qualitative characteristics of accounting include: multiple choice full disclosure historical cost ease of access relevance
Answers
The fasb’s conceptual framework’s qualitative characteristics of accounting include Relevance.
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there is a surplus of a new brand of cereal on the market. what will likely happen to the price of the cereal?
Answers
Answer:
The price of the cereal would fall.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.
types of waves that can be plane polarized
Answers
The roles of ___, ___, and ___ are critical for managers in nonprofit organizations.
Answers
The roles of spokesperson, leader, and resource allocator are critical for managers in non-profit organizations.
What are management's responsibilities in non-profit organizations?The four main areas of planning, organizing, leading, and controlling are how management gurus have divided up management's tasks. The management of nonprofits requires special attention to each area.
How are non-profit organizations run?The nonprofit industry, by definition, works toward humanitarian ends. Because they lack formal hierarchies and managerial structures, many nonprofit organizations are loosely structured and frequently volunteer-driven.
Which managers are critical to advancing innovation?Middle managers are essential for fostering innovation and empowering businesses to adapt quickly to changing conditions. a manager who is in charge of a certain project at work that brings together staff from different levels and functions of the company.
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Select the correct answer.
Helen is the head of the accounts department in a small business. She is calculating the various expenses that the business has incurred in the past quarter. On which asset would she need to calculate the expense of depreciation?
A. Cash
B. Inventory
C. Machinery
D. Accounts receivable
Answers
As a head of the accounts department in a small business. In machinery asset helen need to calculate the expense of depreciation. so option c is correct.
What exactly does accounting depreciation mean?Depreciation is a type of non-cash business expense that is computed throughout the time that an asset is valuable to your company. Using up a portion of an asset's worth at a cost that may be deducted from taxable income allows every organization to benefit from depreciation.
Depreciation is an accounting phrase that covers two distinct but related ideas: firstly, the real decline in an asset's fair value, such as the annual decline in the value of factory equipment.
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A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses to open the
new branch in China?
A. The business could not use the money it spends on the new
branch for something else.
B. The business would be able to increase the selling prices for most
of its products.
C. The business would have to spend all its money making new
Chinese products.
D. The business would be able to easily sell its products to many new
customers.
Answers
Answer: A. The business could not use the money it spends on the new
branch for something else.
Explanation:
Opportunity cost simply means the cost of what one forgoes when an alternative decision is taken.
Since the business chooses to open a new branch in China, the opportunity cost will be the money that the business could have spent on something else.
Therefore, the correct option is A.
02.01 LC)
Work you do for pay is called a _____.
A. service industry
B. diverse workforce
C. job
D. volunteer job
Answers
Check My Work You have a current credit card balance of $450.00, which you are paying off so you can close the account No new purchases have been added this month, and interest is computed on the average daily balance method. The APR is 18%, and the minimum payment is 39. If you make the minimum payment this month, what will the new balance be on the
Answers
Answer:
$417.16.
Explanation:
Since I have a current credit card balance of $ 450.00, which I am paying off so I can close the account and no new purchases have been added this month, and interest is computed on the average daily balance method with an APR of 18%, and a minimum payment of $ 39, if I make the minimum payment this month, the new balance is determined as follows:
(450 - 39) x (1 + 0.18 / 12) = X
411 x 1.015 = X
417.16 = X
Therefore, the new balance would be of $417.16.
the concept of sae programs follow which association’s goals?
a. National Agriculture Education
b. Supervised Agricultural Experiences
c. An all expense paid trip to Washington.
d. (SAE) programs
Answers
The SAE program's design reflects the goals of the (A) National Agriculture Education Association.
What are SAE programs?In a school-based agricultural, food, and natural resources program, a Supervised Agricultural Experience (SAE) is a structured experience and work-based learning opportunity that takes place in a setting outside of regular school hours in order to improve an individual student's industry.
There are three main categories of research SAE programs: analytical, experimental, and inventive.
The ideals of the National Agriculture Education Association are reflected in the SAE program's concept.
A student's project must have all four of the following criteria in order to qualify as an SAE: it must be planned, developed, managed, and overseen.
Professionals in engineering disciplines related to transportation, such as automotive, aerospace, and commercial vehicles, produced SAE standards.
Therefore, the SAE program's design reflects the goals of the (A) National Agriculture Education Association.
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Caleb owns a small business in houston. what should caleb do to encourage creativity among his employ?
a. caleb should avoid making innovation everyone's responsibility.
b. caleb should build an organizational culture based on hierarchy rather than on adhocracy.
c. caleb should avoid hiring knowledge brokers.
d. caleb should fire all the maverick employees working for him.
e. caleb should put as many promising ideas to the test as possible.
Answers
Caleb owns a small business in Houston. Thus, to encourage creativity among his employ Caleb should put as many promising ideas to the test as possible.
Creativity represents the ability to develop new or imaginative ideas and turn them into a reality. Businesses can use creativity in the workplace to create innovative solutions or more positive and collaborative work environments. Creativity promotes employees to think outside of the norm and experiment. Creativity in business is a way of thinking that inspires, challenges, and helps people to find innovative solutions and create opportunities out of problems. It's the reason some companies wow us with new, amazing ideas, whilst others merely follow the beaten path. It's the source of innovation and inspiration.
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Why should a speaker never find all of their information in only one type of source?
- The research will be one-sided.
- The research will become very boring.
- Listeners like to hear about different types of sources.
✅A speaker may end up receiving a biased view of the subject.
Answers
Scenario 4:
You just got the keys to your first apartment. You also have a new credit card with a $4,000 limit and you use it to
furish your new place. Before you know it, you've bought a TV, a couch and a dining room table. When you get the credit card bill, you realize you’ve spent your full credit limit of $4,000.
the credit card bill, you realize you've spent your full credit limit of $4,000.
Does your credit score go up or down?
Why does it go up or down?
If your score goes down, how can you fix it?
Answers
Answer:
Explanation:
Scenario 1:
You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees.
1. Does your credit score go up or down?
Your Credit Card score will go down.
2. Why does it go up or down?
It went down because you were late on your payments.
3. If your score goes down, how can you fix it?
Pay your payments on time.
Scenario 2:
You’ve been eager to buy a new cell phone for months, and now you’re ready to make it happen. You use your credit card to purchase the phone and you set up automatic billing to pay the monthly expenses. At the end of each month, you pay the credit card bill in full.
1. Does your credit score go up or down?
It goes up.
2. Why does it go up or down?
You pay your bills on time.
3. If your score goes down, how can you fix it?
It doesn't go down.
Scenario 3:
Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full.
1. Does your credit score go up or down?
Your score will go up.
2. Why does it go up or down?
You will pay the loan back in full.
3. If your score goes down, how can you fix it?
It doesn't go down.
The credit score of the person is going to go down because it would mean that they have no credit left.
What is a credit score?This is a score that tells how a person is performing based on the credit that they apply for from financial services.
The credit score is going to go down because it would mean that they would be needing more credit.
If the score goes down the best way to make it rise is by making payments on time for the credit collected.
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april has joined a team with members from the sales customers service and shipping and receiving departments which term best describes the team april joined
Answers
Answer:
A cross-functional team
Explanation:
A cross-functional team is composed of members with different skills, experiences, and backgrounds. In organizations, cross-functional teams will have members from various departments. The teams are formed to undertake projects that require input from different experts.
April has joined a cross-functional team. The team has members from many departments. Cross-functional are temporally and get dissolved when the project is complete.
in terms of price elasticity of demand, which of the following goods do you think is the most inelastic? a. new house b. new vehicle c. a specific brand of breakfast cereal d. electricity to power your home
Answers
It's important to note that the price elasticity of demand can vary across different markets and consumer groups. However, based on general trends and consumer behavior, the above analysis holds true.
Price elasticity of demand is a measure of how much the quantity demanded of good changes in response to a change in its price.
When demand is relatively unresponsive to changes in price, we say that it is inelastic.
Conversely, when demand is highly responsive to changes in price, we say that it is elastic.
Out of the options provided, the most inelastic good is likely electricity to power your home.
This is because electricity is a necessity for most households, and there are few substitutes for it.
Even if the price of electricity were to increase significantly, most consumers would not be able to significantly reduce their consumption of it in the short term.
New houses and new vehicles are likely to be more elastic, as they are considered luxury goods and have substitutes available.
For example, if the price of new houses were to increase significantly, some consumers may choose to purchase an existing home or rent instead.
Similarly, if the price of new vehicles were to increase significantly, some consumers may choose to purchase a used vehicle or use public transportation instead.
Finally, a specific brand of breakfast cereal is likely to be the most elastic out of the options provided.
This is because there are many substitutes available for breakfast cereal, and consumers can easily switch to a different brand or type of breakfast food if the price of their preferred brand were to increase significantly.
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In what step of the 7-Step Product Development Process is the product brought to
life through sketching and illustration?
Sourcing
Research
Planning
Prototyping
Answers
Answer: planning
Explanation: The sketch should be as detailed as possible, with labels explaining the various features and functions.
What step in the accounting process should paul and jared undertake in order to see specifically how their numbers compare with competitors and how they rank within the industry?.
Answers
Competitor analysis is the process of identifying and researching competitors in your industry's various marketing strategies.
What is competitor analysis?A competitive analysis is essential for every organization because it helps the firm understand how it compares to the competition as well as providing the firm with ideas for winning methods.Competitor analysis includes data that can be used to identify current and future competitors, influence corporate strategy, and develop business plans.Through competitor analysis, the risk of new competitors, the threat of replacement, commodities, and the bargaining power of the supplier and customers are all considered. Paul and Jared can conduct a competitive analysis to gain a better understanding of their company's operations and identify opportunities to outperform its competitors. Furthermore, it allows them to stay current with market trends and make sure that one‘s product consistently meets and exceeds industry standards.To learn more about competitor analysis refer to
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-1 Name the Act that makes provision for employees to improve their work performance.