Business, 04.04.2020 14:27 chris3487

Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stockâs beta, is listed in the following table:
Stock Investment Beta Standard Deviation
Andalusian Limited (AL) $1,750 0.90 18.00%
Tobotics Inc. (TI) $1,000 1.30 11.00%
Water and Power Co. (WPC) $750 1.10 18.00%
Flitcom Corp. (FC) $1,500 0.60 19.50%
Required:
1. Suppose all stocks in Arielâs portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
O Water and Power Co.
O Flitcom Corp.
O Tobotics Inc.
O Andalusian Limited
2. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
O Flitcom Corp.
O Andalusian Limited
O Water and Power Co.
O Tobotics Inc.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:30

At a young age, ebony's coaches were confident she had the potential to be a world-class swimmer with a future coaching career. after four years on an athletic scholarship and olympic experience under her belt, she chose a different path. with her savings and personal connections, she rented a corner building in a bustling san francisco neighborhood and pursued her dream: a surf shop business. ebony's dream was rooted in which basic right of free-market capitalism?

Answers: 3

Answer

Business, 22.06.2019 12:30

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?

Answers: 1

Answer

Business, 22.06.2019 14:40

Increases in output and increases in the inflation rate have been linked to

Answers: 2

Answer

Business, 23.06.2019 00:30

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.

Answers: 1

Answer

You know the right answer?

Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well a...

Questions