BUSINESS HIGH SCHOOL

A portfolio consists of one risk asset and one risk-free asset. The risky asset has an expected return of 15% and a beta of 1.6. The risk free-rate asset has an expected return of 3%. If the portfolio beta is 1.1, what is the expected return of the portoflio? A. 11.259
B. 13.20%
C.19.20%
D. 6.00%
E. 6.75%

Answers

Answer 1

Answer:

11.25%

Explanation:

In this question, we are asked to calculate the expected return of the portfolio.

portfolio beta = weighted average beta of assets

weight of risky asset * beta of asset = portfolio beta

weight of risky asset = 1.1/1.6

= 0.6875

Expected return = sum of (probability of asset * return of asset)

= 0.6875 * 15% + 0.3125 * 3%

= 11.25%

Related Questions

An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this willA. shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fallB. shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.C. shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.D. shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.
The elasticity of demand isa. the level of necessity of a good or service. b. the degree that changes in a good's price affect the quantity demanded by consumers. c. the amount of complements and substitutes that a good or service has. d. the change in a good's price after demand rises.
Coca-cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a swot analysis, this concern would be an example of a(n): strength. Opportunity. Advantage. Threat. Weakness.
The main activity of a producer cooperative isa. buying products for its members. b. marketing products for its members. c. producing products for its members. d. donating products for its members.
What are some objections that you may hear from a potential employer?

A restaurant manager should consider his own tastes when developing his menu.

Answers

This is not true because the menu is supposed to be inclusive and easily palatable by the public. If a manager uses his own taste he is very possibly alienating the customer base that doesn't have the same tastes as him.

The answers is False

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision-makinga) true
b) false

Answers

Answer:

A. True

Explanation:

The term business intelligence refers to the plans, process through which the raw data is to be converted into meaningful information that became relevant for the ethical decision making so that the goals and the objectives of the company could be accomplished.

Data + Process = Information

Collection of information through internal and external parties would also help to analyze the trends, patterns for better decision making.

Therefore, the given statement is true.

The price (P) of designer jeans is affected by the supply (S) and the demand (D).Which of these can cause an increase in the price of designer jeans?
Increased demand and no change in supply
Decreased demand and increased supply
Increased supply alone
Decreased demand alone

Answers

The price of designer jeans would likely increase if its demand increases and there is no changes in supply.

Answer:

The correct answer is the option 1: increased demand and no change in supply.

Explanation:

In the situation where the demand increases and there is no change in the supply, that involves no changes in the technolgy field that helps the production process to help the competition, would have repercurssions in the price of the product. In that situation, where there is not competition, the supply does no change therefore the impact of the increse of the demand would have repercussions in the price of the product.

______ uses email messages or IMs that appear to be from those you do business with, such as your bank, credit card company, or social network. A) Spoofing B) Phishing C) Cyberbullying D) Pharming

Answers

Answer:

Phishing

Explanation:

Phishing can be regarded as a cybercrime, it is when someone is masquerading him/her self as someone you trust to get the target information such as bank credit card, personal data and others from you as their target.

It should be noted that Phishing uses email messages or IMs that appear to be from those you do business with, such as your bank, credit card company, or social network.

Cleese Company sells merchandise on account for $5,000 to Langston Company with credit terms of 2/10, n/30. Langston Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

Answers

Answer:

$ 3,290

Explanation:

Given that

Merchandise on account sold to Langston = 5000 at 2/10 n/30

2/10 n/30 means 2/10 net 30 refers to a trade credit indicating that the buyer enjoys 2% discount.

Also,

Langston returned $1000 worth of damaged goods.

Thus,

Amount of check

= (Initial sales price - returned damaged goods) × 100% - discount

= (5000 - 1000) × 100 - 2

= (5000 - 1000) × 98%

= $ 3920

A stock splitA. causes a decrease in the number of shares outstanding.
B. increases the par or stated value in proportion.
C. reduces retained earnings.
D. None of the above

Answers

A. causes a decrease in the number of shares outstanding.

In a market economy, it is the consumers that will decide how to allocate the productive resources a business uses. The allocation of products is determined by a concept that is known as supply and demand. When there is a demand for a certain product, then obviously the business has to supply that product. It is the job of the business to look out for signs of demand of a certain product and they have to know just how much of that product he should supply.

A market index is a resulting value created from the combination of several stocks and other investment vehicles presenting its total value against a base value at a certain period. It is used to show the whole stock market at the same time keeping track with the way the market changes overtime. The practice of tracking the value of the stock market over a period of time can be used to benchmark to make a credible comparison of stock returns.

The correct answer to the question is letter D. None of the above.

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The most liquid asset is

Which field of economics deals primarily with the problems faced by low-income countries?

Countries gain from specializing in producing goods in which they have a(n) __________ advantage and trading for goods in which other countries have a(n) __________ advantage.