subject
Business, 22.10.2019 19:30 aaronlikly

Brandon calculated the portfolio’s beta as 0.930 and the portfolio’s expected return as 9.1150%. brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. he recommends replacing atteric inc.’s shares with the same amount in additional shares of transfer fuels co. the risk-free rate is 4%, and the market risk premium is 5.50%. according to brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (note: do not round your intermediate calculations.) 1.1935 percentage points 0.7508 percentage points 0.9625 percentage points 1.1069 percentage points analysts’ estimates on expected returns from equity investments are based on several factors. these estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways. suppose, based on the earnings consensus of stock analysts, brandon expects a return of 9.65% from the portfolio with the new weights. does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? fairly valued overvalued undervalued suppose instead of replacing atteric inc.’s stock with transfer fuels co.’s stock, brandon considers replacing atteric inc.’s stock with the equal dollar allocation to shares of company x’s stock that has a higher beta than atteric inc. if everything else remains constant, the portfolio’s risk would .

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:00
5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.
Answers: 3
question
Business, 22.06.2019 13:40
Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?
Answers: 1
question
Business, 22.06.2019 19:40
The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.
Answers: 3
question
Business, 22.06.2019 21:30
Zara, a global retail and apparel manufacturer based in spain that has successfully implemented this idea by having a continuous flow of new products that are typically limited in supply. zara has created a system that draws its clientèle into its stores, on average, 17 times per year as compared to 4 times per year for most stores. how is zara using it to gain competitive advantage? what specific technologies are used by zara to maintain this advantage over its competition?
Answers: 3
You know the right answer?
Brandon calculated the portfolio’s beta as 0.930 and the portfolio’s expected return as 9.1150%. bra...
Questions
question
Mathematics, 30.08.2019 15:30
question
Mathematics, 30.08.2019 15:30
question
Mathematics, 30.08.2019 15:30
Questions on the website: 13722367