You live in an Eichler-built house in Cupertino California. You admire Apple so much that it is the only stock that you want in your portfolio
You have $100,000 of your own money to invest and you intend to buy more Apple on margin by borrowing an additional $40,000. Your broker will lend to you at the risk free rate, 5%, and has guaranteed the lending rate for the duration of your investment. Apple's expected return is 12% and the expected return on the market is 8%. Apple's beta is 1.25. What beta do you expect from your portfolio?
A) 1.25
B) 1.45
C) 1.55
D) 1.65
E) 1.75
E
You might also like to view...
TynsCorp has rolled out a new set of benefits from which employees may take advantage of one per calendar year. These benefits include up $2,000 towards the cost of home insulation or the purchase of a hybrid car. This program is an example of green benefits.
Answer the following statement true (T) or false (F)
The WBS is created by decomposing a project into smaller pieces of manageable work
Indicate whether the statement is true or false
According to the classic communications model of Schramm (1955), the element of "visioning" refers to
A. the design and development of the site content or e-mail that aims to convey the message of the company, and is dependent on understanding of the target audience B. this is the external influence that affects the quality of the message; in an Internet context this can be slow download times, the use of plug-ins that the user cannot use or confusion caused by too much information on-screen C. the process of interpreting the message, and is dependent on the cognitive ability of the receiver, which is partly influenced by the length of time they have used the Internet D. occurrences through online forms and through monitoring of on-site behavior through log files E. none of the responses because this does not belong to the classic communications model developed by Schramm (1995)
According to the survey reported in the text, what is the number-one motivator of employees?
a. the chance to think for themselves b. money c. working with people who treat them with respect