After a detailed analysis of the oil stock LGCY, you determine that it is overvalued, and you plan on shorting $10,000 of it. You would like to isolate your bet on the alpha of the stock, so you want to hedge out all of your exposure to the market and to the oil industry. LGCY has a market beta of 1.1, and an oil industry beta of 1.5.
XLE (an oil stock ETF) has a market beta of 0.8 and an oil industry beta of 1.6.
SPY has a market beta of 1 and an oil industry beta of 0.1.
How could you use XLE and SPY to reduce your exposure to both risk factors to 0? If your portfolio was made up of just these three assets, what would your final position sizes be?

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest. extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?