Stock A has a beta of 1.2 and a standard deviation of 20% stock B has a beta of 0.8 and staderd deviation of 25% .Portfolio P has $200,000 consisting of $100,000 invested in stock A and $100,000 in stock B . which of the folloing statement is Correct ? Assume that the stocks are in equilibrium
1) Stock A's return are less highly correlated with the return on most other stocks than B's return
2) Stock B has a higher required rate of return than stock A
3) Portfolio P has a standard deviation of 22.5%
4) More information is needed to determine the portfolio's beta
5) Protfolio P has a beta of 1.0

Answers

Answer 1

The stocks are in equilibrium, the correct statement is 4) More information is needed to determine the portfolio's beta.

To determine which statement is correct, let's evaluate each option based on the given information:

Stock A's returns are less highly correlated with the returns on most other stocks than B's returns. This statement cannot be determined solely based on the provided information. The correlation between stock returns depends on factors beyond beta and standard deviation.Stock B has a higher required rate of return than stock A. The required rate of return is determined by the riskiness of the stock, which is reflected in the stock's beta. Stock B has a beta of 0.8, which is lower than Stock A's beta of 1.2. Generally, a higher beta indicates higher risk, and therefore, Stock A would typically have a higher required rate of return than Stock B. So, this statement is incorrect.Portfolio P has a standard deviation of 22.5%. To calculate the standard deviation of a portfolio, we need to consider the weights and correlations of the individual assets. Without knowing the correlation between Stock A and Stock B, we cannot determine the portfolio's standard deviation accurately. So, this statement cannot be determined based on the provided information.More information is needed to determine the portfolio's beta. To calculate the portfolio's beta, we need to know the weights of the individual stocks and the correlation between their returns. Since the weights and correlation are not provided, we cannot determine the portfolio's beta. Therefore, this statement is correct.Portfolio P has a beta of 1.0. Without knowing the weights of the individual stocks and their correlation, we cannot determine the portfolio's beta. So, this statement cannot be determined based on the provided information.

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Related Questions

In what type of economy do individuals and firms determine what will be produced?
Mixed
Traditional
Market
Command

Answers

Answer:

market

Explanation:

I think it’s warket hope this helps

​Lilliput's aggregate income in 2015 was ​$48,002,000,500. Suppose the population of Lilliput was 20,100,500 in 2015​, of which 16,086,000 people were employed. ​Therefore, Lilliput's income per capita in 2015 was ​$nothing. ​(Round your answer to two decimal places.​) Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. Lilliput ▼ suffered didn't suffer from a recession in 2016. ​Lilliput's yearly unemployment rate for 2016 is likely to be ▼ greater thangreater than not significantly different fromnot significantly different from lesser thanlesser than the previous​ year's value.

Answers

Answer: See explanation

Explanation:

1. Lilliput's income per capita in 2015 will be calculated as:

= Income / Population

= $48,002,000,500 / 20,100,500

= $2388

2. Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. We can say that Lilliput (suffered) from a recession in 2016. This is because there was a fall in the aggregate income from the first quarter which was $6.5 billion to $5.4 billion in the second quarter

3. Lilliput's yearly unemployment rate for 2016 is likely to be (greater than) the previous​ year's value.

HELP ME PLEASEE!! ILL GIVE CROWN!!!
which of the following should credit be used for?
A. small things you want
B. large things you need and that you can repay over time.
C. money that you can never afford to repay.
D. purchasing things you want so you dont have to save.

Answers

Answer:

B

Explanation:

Credit should be used for large things that you can't afford at the moment but over time will be able to repay (like bills). You should never purchase things that are too expensive for you to repay (within a year.)

Sandia Inc. Wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straight-line basis over 10 years to a book salvage value of $0. The actual cash salvage value is expected to be $25,000 at the end of 10 years. If purchased, Sandia will incur annual maintenance expenses of $3,000. These expenses would not be incurred if the press is leased. If the press is purchased, Sandia could borrow the needed funds at an annual pre-tax interest rate of 10%. The lease rate would be $48,000 per year, payable at the beginning of each year. If Sandia has an after-tax cost of capital of 12% and a marginal tax rate of 40%, what is the net advantage to leasing? a.$65,543 b.$57,173 c.$37,737 d.$60,713

Answers

Answer:

c.$37,737

Explanation:

Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]

PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322

PV of Cost of Buying = $262,434

Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))

PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)

PV of Cost of Leasing = $224,697

Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing

Net advantage to leasing = $262,434 - $224,697

Net advantage to leasing = $37,737

All of these statements apply to effective decision makers except:

A. They take risks based on intuition and gut feelings
B. They are flexible and resourceful
C. They rely on personal ‘scripts’ that help them manage how to act and react
D. They recognize that the same solution may not apply to similar situations

Answers

Except for A because that’s just what makes sense

Why would My future job be a flight attendant

Answers

Answer:

if you like to travel and be on planes and get that bag then be a flight attendant :) do what you want to!

Explanation:

Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have five years to maturity. What is the current yield for Bond P and Bond D

Answers

Let Bond par value be 1000

Bond P:

Coupon rate=10%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor  YTM=7% Present value

Ineterest 1-9 years 100 6.515232 651.52

Value 9 1000 0.543934 543.93

       1195.45

Current price =1195.45

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond P=100*100/1195.45=8.37%

Bond D:

Coupon rate=5%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor  YTM=7% Present value

Interest 1-9 years 50 6.515232 325.76

Value 9 1000 0.543934 543.93

       869.69

Current price =869.69

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond D=50*100/869.69=5.75%

Capital gains yield

current price bond P=1195.45

Next year's price bond P=100°5.971299+1000*0.582009=1179.14

The capital gain yield on bond P=(next year price-current price)/current price

                                       =(1179.14-1195.45)/1195.45

                                       =-1.36%

current price bond D=869.69

Next year's price bond D=505.971299+1000*0.582009=880.57

The capital gain yield on bond D=(next year price-current price)/current price

                                       =(880.57-869.69)/869.69

                                       =1.25%.

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Answers

Answer:

what do you need help with?? we dont see anything

Explanation:

Answer:

?

Explanation:

write a real life experience that illustrates the process of recruiting, selecting, and training employees.​

Answers

I am not sure I’m sorry

Answer:

Being an astronaut

Explanation:

What jobs should require personality tests prior to hiring a candidate?

Answers

The first thing you need to understand is that personality test results alone cannot be used to hire employees. First, candidates must be assessed for cognitive ability.

Cognitive ability alone predicts more than 60% of the variation in job performance. Of all personality traits, none predict performance variability greater than 5%. Use the validity studies conducted on personality tests as a guide. Before deciding which roles require character assessment, determine which roles may suffer significantly when hiring someone with character flaws. Personality tests are very useful when used properly.

Personality tests are very dangerous in recruitment as almost all are of some degree of dubious validity and can lead to lawsuits and discrimination complaints. However, we assume that there are methods for assessing personality suitability for different types of jobs and that tests, combinations of tests, etc., can be developed to assess personality in combination with structured interviews and other assessment tools. increase.

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If LLC members have engaged in fraud or other bad conduct, a court may rely on ______ as the rationale to require members to compensate damaged parties.

Answers

the answer would be LLC membership engaging in bad fraud charges

what is the differences and similarities between rental goods services and non goods services

Answers

Answer and Explanation:

Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.

Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.

Facts about the chip category obtained from AC Nielsen are?


syndicated data.



survey data.



questionnaire data.



primary data.



experimental data.

Answers

Answer:

Explanation:

Then what is the question

Por que se dice que emprender suele ser una decisión muy difícil quien la toma sabe que esta renunciando a la estabilidad que otorga un salario

Answers

Answer:

porque se dice que quiero tomar el siguiente

Drag the tiles to the correct boxes to complete the pairs.
Match the different types of incomes to their sources.

Answers

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:

A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

The risk-reward relationship says:

Answers

im not understanding this question.. can you reword it?

HELP PLEASE!!!
what is the outcome when a person defaults on a home loan?
A. the person goes to jail.
B. the bank will make the person work a second job.
C.the bank will take the person's car.
D.the bank will foreclose on the home.

Answers

Answer:

D.the bank will foreclose on the home.

Explanation:

The bank may even sue and garnish wages and financial accounts. The bank may even serve a conversion of accetts.

Using money as a medium of exchange is more efficient than barter because?

Answers

Explanation:

People are less likely to be cheated since the the object and money are often the same value, but with barter trade,an apple which may cost 5 dollars may be traded for a bag of rice which may cost 30 dollars

The markets for prostitution in Nevada and New Jersey have two important differences: 1) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and 2) customers in New Jersey face higher risks of contracting diseases from prostitutes because the illegal nature of the business makes reliable information about product quality much more costly to obtain. Given these facts, which state would you expect the price of prostitution services to be higher? Why? Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Answers

Answer:

Given these facts, which state would you expect the price of prostitution services to be higher? Why?

Since the risks associated to prostitution are higher in New Jersey, we could assume that the price for these services will be higher there. The supply curve of prostitution shift to the left, increasing the price and decreasing the quantity.

Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Since the price is higher in New Jersey, the quantity demanded will be lower. Also, the risks associated to consuming the service will shift the demand curve to the left, reducing the quantity.

List the type of banking service each consumer would be most likely to use. Explain your answer.

a. A person planning to open a fitness center
b. A musical group
c. wealthy senior citizen
d. A buyer of a van
e. A high school recycling club

Answers

Think the answer is c but I’m not sure if it’s correct
Wealthy senior citizen

Matt works part-time and is paid $6.75 per hour. Determine Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours. Round your answer to the hundredths place.

Answers

Answer:

Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69

Explanation:

Per hour amount paid to Matt = $6.75

Total number of hours worked by Matt = 20.25

To find Gross pay, multiply hours worked and hourly rate of pay.

Therefore,

Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours [tex]=20.25(6.75)=\$136.6875[/tex] ≈ $136.69

What careers are in the Information Support and Services career pathway of the IT career cluster? (15 points for you)

Question 1 options:

graphic artists, painters, artists


broadcasters, journalists, writers


help desk specialists, PC support specialists

Answers

I think it’s “help desk specialists, PC support specialists”

In the graph above, the point E represents values which are __________ with current resource use and current technology.

Answers

In the graph above, the point E represents values which are unattainable with current resource use and current technology.

What point is the unattainable point in the PPC?

PPC refers to production possibility curve, This is a curve that shows the relationship between available resources to what can be attained.

The points outside the curve implies that the producer cannot achieve what they want given the available resources in the economy, however if the points are within the curve the available resources can meet with the intended production

Point E is a is a point that is beyond the graph, that is outside the graph. The resources available cannot attain production.

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Complete question

This is an attachment

A self-employed psychologist treats clients in an office in his own house. What must the psychologist do with his house in order to best serve clients?

build extra rooms for client treatment
keep the house clean and private
buy snack foods for the kitchen
have a large television

Answers

Answer:

keep the house clean and private.

Explanation:

I know someone who does exactly this. Also, by keeping certain parts of the house either exclusively or predominantly for business, he can write that square footage off in taxes.

Answer:

Its B

Explanation:

difference between moa and aoa?​

Answers

Answer:

AOA is a set of rule and regulations to govern the company's working. 2. MOA defines objectives, powers and constraints of the organization as a whole. AOA describe powers, duties, rights and liabilities of individuals associated with the organization (like members of the Board of Directors).

Explanation:

i hope i helped <3

Determining Liquid Assets and Current Liabilities. Based on these items, what is the total of the (a) liquid assets and (b) current liabilities?

Checking account balance $860

Retirement account balance $57,000

Credit card balance $117

Coin collection $450

Savings account balance $2,675

Current student loan payment due $220

Investment account balance $8,000

Mortgage $178,000

Answers

1. A
2. A
3. B
4. A
5. A
6. B
7. A
8. B
24,944 answers
(a) Liquid assets = Checking account balance + Savings account balance = $860 + $2,675 = $3,535

(b) Current liabilities = Credit card balance + Current student loan payment due = $117 + $220 = $337



When your tire blows out in the middle of a drive, you should

Answers

You should tap the breaks repeatedly and pull over

get out of the car and change it

Whether a purely competitive industry is a constant-cost industry or an increasing-cost industry, the final long-run equilibrium position of all competitive firms share which of the following characteristics

Answers

The correct answer is: In the long run, a multiple equality occurs where price is equal to marginal cost which is equal to minimum average total cost.

What does the long-run equilibrium position look like in a purely competitive market?

It occurs when companies are reaching zero economic profit and when there is no insertion of new companies in the sector. This occurs when, in the long run, companies produce at the minimum point of their average cost curve.

Therefore, in a long-term equilibrium situation in a competitive sector, production is adjusted to the minimum point of its average cost curve, where companies obtain only normal profits and not impacted by changes in demand, for example.

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When a company targets several different market segments and creates a different marketing mix for each segment, they are using _______.

Answers

When a company targets several different market segments and creates a different marketing mix for each segment, they are using "multi-segment targeting".

What is multi-segment targeting?

A marketing tactic known as "multiple-segment specialisation" separates your target market into many groups made up of customers with comparable lifestyles and purchasing habits.

As a result, you might design advertisements that are specifically tailored to each demographic.

The multi segment target strategy is-

The company targets multiple market groups at once using a multi-segment targeting strategy, often known as a "differentiated marketing strategy," offering each segment unique advantages, a unique marketing mix, and unique marketing methods.Marketers frequently decide to concentrate on particular needs, such as convenience, affordability, quality, or individualized service. When businesses create a product that will be marketed to more than one sector, it is made to address a need that is present across all intended audiences.Some businesses will make rival items with various perceived benefits in order to develop a multi-segment targeting approach.

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_______ is a hybrid ADR in which both parties first submit to mediation for a set period of time (perhaps two business days). If the mediation fails, the process then moves to binding arbitration.

Answers

Discovery, Exculpatory

is a hybrid ADR in which both parties first submit to mediation for a set period of time (perhaps two business days). If the mediation fails, the process then moves to binding arbitration.

What is Hybrid ADR ?

A hybrid dispute resolution process combines two or more traditional dispute resolution processes into one.

The most common hybrid process is med-arb in which the same individual or dispute resolution forum acts first as a mediator and then if necessary, as an arbitrator.

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Other Questions
Option1. The universal set is the set of polygons. Given that A={quadrilaterals),B - (regular polygons). Name a member of An B', the diagonals of whichbisect each other. if ax= b has two solutions x1 and x2, find two solutions to ax= 0 Stars are mostly made ofA) hydrogen and heliumB) pure hydrogenC) carbon, hydrogen, oxygen and nitrogenD) an equal mixture of all elements search of a value in binary search treee takes o(logn) true false How many moles of bromide ions are in an aqueous solution of CaBr2 that has a concentration of 4. 50 M and a volume of 4. 56 L ?A)38. 92B)10. 26C)6. 33D)41. 04E)13. 65 Explain whether the given equation defines an exponential function. Give the base for each function.y = x x Using the pumping theorem and closure under intersection, show that the following are not regular. (a) {ww: w {a,b}*} (b) {www {a,b}*} (c) {ww: w {a,b}*}, where w stands for w with each occurrence of a replaced by b, and vice versa lipid-soluble compounds are incapable of penetrating the blood-brain barrier. true or false after reconstruction, the american south experienced unprecedented levels of economic prosperity, social justice, and racial harmony. A water wave is called a deep-water wave if the water's depth is greater than or equal to one-quarter of the wavelength. The speed of a deep-water wave depends on its wavelength: v=(g1/(28(1/2) Longer wavelengths travel faster. Consider a diving pool that is 6.0 m deep and 12.0 m wide. Standing water waves can set up across the width of the pool. a) Draw the first three standing wave modes for water in the pool. (Hint: What are the boundary conditions at x = 0 and x =L? Can water slosh up and down at the side of the pool?) b) What are the wavelengths for each of these waves? Do they satisfy the condition for being deep-water waves? c) What are the wave speeds for each of these waves? d) Derive a general expression for the frequencies of the possible standing waves. Your expression should be in terms of m,g and L. e) What are the oscillation periods of the first three standing wave modes? An SRS of size 10 is drawn from a population that has a normal distribution. The sample has a mean of 111 and a standard deviation of 4.Give the standard error of the mean___. this protein adduct can hold (tether) a peripheral membrane protein to the cell membrane: a) a fatty acid b) a charged amino acid. c) a polar amino acid d) a phosphate group according to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs. You grin broadly while your best friend tells you she was just accepted to medical school. The facial-feedback hypothesis predicts that you will feel ______.a. happyb. enviousc. angryd. all of these emotions 1. why are center drills used, and what is physically different about them compared to other drills? the ____ property contains the name of the object to be validated when using the rangevalidator control. apples ipod, with more than 25 models introduced but a sharp dip in recent sales, is in which stage of the product life cycle? investors who desire the ability to trade in and out of positions throughout the day would be least likely to place orders for Which function of money allows people to specialize in areas in which they have a comparative advantage? 0 A. Standard of deferred payment O B. Unit of accounting O C. Store of value D. Medium of exchange isotretinoin is a medication used for the treatment of severe acne. how many different isomers arising from double-bond isomerizations are possible?