You are considering investing in one of two well-diversified portfolios. portfolio a has an expected return of 8% and a beta of 1.35 while portfolio b has an expected return of 6% and a beta of 0.80. assuming that you are a rational risk-averse investor and the risk-free rate is 2%, which of the two portfolios should you choose and why?
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Business, 21.06.2019 20:30
Which of the following is an example of formal management controls? answers: a firm's culturethe willingness of employees to monitor each otherbudgeting and reporting activitiesmanagerial motivation
Answers: 3
Business, 22.06.2019 01:30
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine
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Business, 22.06.2019 13:30
Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, peteās three children, naomi, daniel, nick; fredās three children, heather, chris and steve; and lucyās two children, david and rachel. joseās will states the following āi leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.ā which of the following statements is correct? (a) under joseās will rachel will receive $150,000. (b) under joseās will chris will receive $150,000. (c) under joseās will nick will receive $100,000. (d) under joseās will pete will receive $200,000.
Answers: 1
Business, 22.06.2019 16:30
:; )write a paragraph of two to three sentences and describe what will happen to a society that does not have a productive workforce?
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You are considering investing in one of two well-diversified portfolios. portfolio a has an expected...
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