Finance Answers

Calculating Portfolio Betas You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15 percent in stock S, and 40 percent in stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?

Jack holds a portfolio which is currently worth $100,000. With Beta =2.

Jack received 20,000, so he decided to sell one of the securities with Beta=1 for $5,000 and use 25,000 to buy a new security B=2.5.

Calculate Beta of the new portfolio.

Sam invested $3m in a portfolio made of 10 different securities with portfolio’s Beta of 3.5.

One month later, Sam sold security A which Beta =1.8 for $490,000 (purchased at a cost of 400,000) and used the profit to add security C with beta =2.4.

Compute the new portfolio Beta.

Calculating Portfolio Betas You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15 percent in stock S, and 40 percent in stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?

Plak Co. of Chicago has several European subsidiaries that remit earnings to it each year. Explain how appreciation of the euro (the currency used in many European countries) would affect Plak’s valuation?

An Essay on the Critical Evaluation of the Role of Government in an Economy

The essay must have the following components:

1. The Historical Perspective about Role of Government in Economy (How the role has changed since the views of Adam Smith)

2. Role of Government in different types of economies (Capitalist/Socialist/Mixed)

3. Theoretical Arguments for the Role of Government

4. Examples and Real Life Evidence

5. Criticism of the Role of Government

6. Conclusion

Identify the main pieces of legislation(laws) and regulations governing the financial sector in Zambia highlighting their main provisions and when they were enacted and/or amended and the possible reasons for their enactment and/or amendment as up to the end of 2021.

Consider the following for a firm. Its stock price (P₀) is at $50, its payout ratio (POR) is 0.4, its EPS₁ is $2.00, and investor required return is 10%.. What is the percentage of capital gains?

1. Consider the following for a firm. Its stock price (P₀) is at $50, its payout ratio (POR) is 0.4, its EPS₁ is $2.00, and the investor required return is 10%. What is its required rate of return on equity?

The average cost of garment is £28.50

• The labour involved in producing on average 30 hours
• Casual labour currently costs £5.50 per hour; will have to increase this next year by at least 5%
• The transportation costs with the cost of delivery amount to £4.50 per sweater.

the company also runs a Head Office which costs £100,000 per year. The Directors require total salaries of £125,000 and each year they award themselves a 5% pay increase.This year advertising spend is £115,000. Next year the Sales Director would like to advertise in airline magazines, he believes that this would increase sales from this year’s forecast of 2,000 sweaters. He estimates that if the advertising budget is increased to £285,000 then sales would increase to 5,000 sweaters.

sweaters sell for between £200 and £400.

1. Is the Managing Directors friend right in suggesting that marginal costing is an appropriate way to control costs and set a selling price? You should illustrate your answer with relevant calculations.