Business, 26.11.2019 19:31, gungamer720
Stock a has a beta of 0.8, stock b has a beta of 1.0, and stock c has a beta of 1.2. portfolio p has equal amounts invested in each of the three stocks. each of the stocks has a standard deviation of 25%. the returns on the three stocks are independent of one another (i. e., the correlation coefficients all equal zero). assume that there is an increase in the market risk premium, but the risk-free rate remains unchanged. which of the following statements is correct?
a. the required return of all stocks will remain unchanged since there was no change in their betas.
b. the required return on stock a will increase by less than the increase in the market risk premium, while the required return on stock c will increase by more than the increase in the market risk premium.
c. the required return on the average stock will remain unchanged, but the returns of riskier stocks (such as stock c) will increase while the returns of safer stocks (such as stock a) will decrease.
d. the required return on the average stock will remain unchanged, but the returns of riskier stocks (such as stock c) will decrease while the returns on safer stocks (such as stock a) will increase.
Answers: 1
Business, 21.06.2019 23:10, josie311251
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. required: a. journalize the adjusting entry to record the accrued fees on december 31. refer to the chart of accounts for exact wording of account titles. b. if the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
Answers: 2
Business, 22.06.2019 11:20, jaideeplalli302
You decided to charge $100 for your new computer game, but people are not buying it. what could you do to encourage people to buy your game?
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Business, 22.06.2019 11:50, dinero0424
After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?
Answers: 1
Business, 22.06.2019 19:30, ssiy
Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.
Answers: 2
Stock a has a beta of 0.8, stock b has a beta of 1.0, and stock c has a beta of 1.2. portfolio p has...
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