Make advantage of cash terms

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1. A portfolio is comprised of 30 percent of stock X, 55 percent of stock Y, and 15 percent of stock Z. Stock X has a beta of .87, stock Y has a beta of 1.48, and stock Z has a beta of 1.04. What is the portfolio beta?

1.111

1.190

1.157

1.231

1.012

2. Jerry purchases office supplies totaling $1,890. He can take advantage of cash terms of 2/10, n30 if he obtains a short-term loan. If he can borrow the money at 10.5% annual ordinary interest for 20 days, how much money will he save?

A. 32.75

B. 11.03

C. 37.50

D. 26.77

Reference no: EM131919674

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