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Elodia [21]
1 year ago
15

For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio i

s less than the weighted average of the betas of the individual stocks. b. The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation. c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks. d. The riskiness of the portfolio is the same as the riskiness of each stock if it was held in isolation. e. The beta of the portfolio is larger than the weighted average of the betas of the individual stocks.
Business
1 answer:
Paraphin [41]1 year ago
8 0

Answer:

c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.

Explanation:

The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.

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An individual works downtown and pays $600 per month in rent for an apartment located 10 miles from her office. She has calculat
zmey [24]

Answer:

Option (B) is correct.

Explanation:

For a 20 workday month,

cost of gas and productivity = $4 per day

cost of commuting = cost of gas and productivity × 20 workday month

                               = $4 × 20

                               = $80.

The total rent he is paying currently is $600 per month that does not include the commuting cost.

Hence, the individual must willing to pay a total of:

= Total rent + Cost of commuting

= $600 + $80

= $680 for an apartment downtown.

Thus, the total amount to be paid willingly is $680.

8 0
1 year ago
Layla made a snide remark to her colleague that he "looks at the customer like henry ford probably did." what did she mean by su
Anarel [89]
She made a snide remark means she's looking to her colleague in a negative or insulting way. If her action is can be compared with how he looks at the customer like henry ford probably did.

Henry Ford is a well-known businessman. What Layla tried to show is that she collogue should treat well their customer because of the source of their money or company's income. 
8 0
1 year ago
Jasmine finished writing a news release about her company's new product. She intends to e-mail the message to local television a
Drupady [299]

Answer:

Public Relations

Explanation:

Public relations is the term which is defined as the process of the strategic communication, which builds the beneficial relationship mutually among the public and the organizations. In other words, it is a practice of managing the communication among the public and the organization.

A major component of the public relations is the publicity. Organizations often generate the publicity through sending the new releases to the media in the hope that the media will use the stories regarding the products and also about the firm.

3 0
1 year ago
A retired woman has $180,000 to invest. she has chosen one relatively safe investment fund that has an annual yield of 9% and an
Zepler [3.9K]
Solution:  
Let the amount invested in scheme which yields 9% be x and amount invested in scheme which yields 13% be y.  
x + y = 180000 --equation 1 
0.09x + 0.13y = 18000 --equation 2  
Balancing the equations, multiply equation 1 with 0.09 and equation 2 with 1,  
0.09x + 0.09y = 16200 -equation 3
 0.09x + 0.13y = 18000 --equation4  
Subtracting equation 4 from 3, 
 -0.04y = -1800  
y = 45000 
 Now putting value of y in equation 1, 
 x + 45000 = 180000 
 x = 135000 
 The amount to be invested in scheme which yields 9% = $135,000
 The amount to be invested in scheme which yields 13% = $45,000
6 0
1 year ago
Which methods of evaluating a capital investment project use cash flows as a measurement basis?
bixtya [17]
The method <span>of evaluating a capital investment project that use cash flows as a measurement basis are: </span><span>Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
- internal rate of return, Used to measure potential profit from an investment
- Net present value, used to determine the worth of all company's assets</span>
6 0
2 years ago
Read 2 more answers
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