Jenna holds a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. Jenna plans to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.80. What will the portfolio's new beta be?
A. 1.286
B. 1.255
C. 1.224
D. 1.194
E. 1.165
Answer: E
You might also like to view...
Which of the following is an example of a temporary difference that could result in a deferred tax asset?
a. Gain on disposal of an asset when included in taxable income before it is included in pretax accounting income b. Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes c. Gross margin on installment sales is recognized for accounting purposes before it is included in taxable income in the income tax return d. Prepayments of expenses in year of payment; recognition of expense for accounting purposes occurs in a later year
Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is
A. an express warranty. B. an implied warranty. C. a warranty of title. D. puffery.
The process of calculating what dollars received in the future are worth today is called
A) calculating the yield to maturity. B) discounting the future. C) compounding the future. D) compounding the present.
By what date must the value of all noncash benefits be determined for the preceding year?
A) December 31 B) January 31 C) February 28 D) March 31