Jim angel holds a $200,000 portfolio consisting of the following stocks: stock investment beta a $50,000 1.20 b $50,000 0.80 c $50,000 1.00 d $50,000 1.20 total $200,000 what is the portfolio's beta? do not round your intermediate calculations. a. 0.861 b. 0.809 c. 1.050 d. 1.239 e. 1.040

Option (c) is correct.

Explanation:

Jim Angel holds a $200,000 portfolio

Weight of stock-A is as follows:

= Investment of stock A ÷ Total investment

= $50,000 ÷ $200,000

= 0.25

Therefore,

Portfolio beta:

= (0.25 × 1.20) + (0.25 × 0.80) + (0.25 × 1.00) + (0.25 × 1.20)

= 0.3 + 0.2 + 0.25 + 0.3

= 1.05

Therefore, the portfolio's beta is 1.05.

first year       = 300

second year = 275

Explanation:

The cost will be for year 1 and year 2 extractions for the first year we must consider the cost is increased by the rate as it could be used to invest at 10%

we revenue will be the first year plus the interest.

And then, second year revenue

Profit will be revenue less cost:

lastly, we know the total amount we an extras is 575 tons so

q1 + q2 = 575

We can replace Q2 as an expression of q1

q2 = 575 - q1

and now we try to solve to get the quadratic.

121Q1 + 63250 - 110Q1 -0.11Q2 - 33,062.5‬ +115q1 -0.1Q12

126Q1 + 30,187.5 - 0.21Q12

-0.21Q2 + 126Q + 30,187.5

As this is a quadratic function the max point will be at vertex

now we solve for the vertex of the quadratic function

-b/2a

126/0.21*2 = -104/0.4 = 300

Q1 max out the profit at 300

Q2 will be 575 - 300 = 275