Answer:
The Required rate of return on Portfolio is 9.67%
Explanation:
In order to get the answer first we need to calculate the new beta of portfolio. The weight of portfolio and new stock is calculated using total value of investment in portfolio and multiplying by the total investment we get new beta.
(3M / 3.6M) x 1.10 + (0.6M / 3.6M) x 0.60 = 1.01667
Through using the CAPM Model we get risk premium of Existing Portfolio:
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
10% = 5.6% + (Rm -RF) x 1.10
10% - 5.6% = (Rm - RF) x 1.10
4.4% / 1.10 = (Rm - RF)
(Rm - RF) = 4%
After getting the Risk Premium we can CAPM model equation to get New Required rate of return.
Required rate of return of portfolio = RF + ( Rm - RF ) x beta
Required rate of return of portfolio = 5.6% + 4% x 1.01667
Required Rate of Return of Portfolio = 9.67%
Answer:
The GDP will increase by $2,000 as a result of these transactions
Explanation:
When trying to calculate the increase in GDP caused by a series of transactions, we do not add all the transactions, instead we look at the price of the final good and that is the increase in GDP. In this case the final good is the necklace that the store department sells for $2,000 therefore we will only consider the final transaction. So the GDP will increase by $2,000 as a result of this series of transactions because the final good sold for $2,000.
<span>In the product development process, the stage of concept testing is followed by product development. The product must actually be in existence before market testing can be conducted. So, in this process, product development is in between concept testing and market testing.</span>
Answer:
putting a halt on the layoffs
Explanation:
This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.
Answer:
B. $ 23 comma 000 $23,000
Explanation:
Following equation to calculate the common stock Value
Total Debit = Total Credit
40,500 = $17,500 + Common stock value
Common stock value = $40,500 - $17,500 = $23,000
<u>Accounts with Credit balances</u>
Accounts Payable $7,000
Revenue $6,000
Common Stock ?
Notes Payable $4,500
Total Debit balances $17,500
<u>Accounts with Debit balances</u>
Cash $3,000
Expenses $16,500
Furniture $10,000
Accounts Receivable <u>$11,000</u>
Total Debit balances 40,500