Answer:
required return 16%
risk/reward 8%
portfolio return 13.60%
Explanation:
Required return=risk-free rate+beta*(market return-risk free rate)
risk-free rate=4%
beta=1.5
market return=12%
required return=4%+1.5*(12%-4%)=16.00%
Reward/risk ratio=market return-risk free rate
reward/risk ratio=12%-4%=8%
Portfolio return=weight of the asset* required return on asset+weight of the rest of the portfolio*market return
weight of the asset=40%
required return=16%
weight of the rest of the portfolio=1-40%=60%
market return=12%
portfolio return=(40%*16%)+(60%*12%)=13.60%
The risk-free rate is termed as the return that is associated with the investment with zero or no risk. It represents the number of investors that would expect a higher return from no-risk investment over a specified period of time.
The answers are:
required return 16%
risk/reward 8%
portfolio return 13.60%
[tex]\begin{aligned}\text{Required return}=\text{risk-free rate}+\text{beta}\times(\text{market return-risk free rate})\end{aligned}[/tex]
risk-free rate=4%
beta=1.5
market return=12%
[tex]\begin{aligned}\text{required return}=4\%+1.5\times(12\%-4\%)=16.00\%\end{aligned}[/tex]
[tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio=market return-risk free rate
[tex]\begin{aligned}\frac{\text{reward}}{\text{risk ratio}}=12\%-4\%=8\%\end{aligned}[/tex]
Hence the [tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio is 8%
Portfolio return=[tex]\text{weight of the asset}\times\text{ required return on asset}+\text{weight of the rest of the portfolio}\times{\text{market return}}[/tex]
weight of the asset=40%
required return=16%
weight of the rest of the portfolio=1-40%=60%
market return=12%
portfolio return=[tex](40\%*16\%)+(60\%\times12\%)=13.60\%[/tex]
Therefore the required return on a portfolio is 13.60%.
To know more about the risk-free rate, refer to the link below:
https://brainly.com/question/20166183
A portfolio has 70 shares of Stock A that sell for $30 per share and 125 shares of Stock B that sell for $17 per share. (a) What is the portfolio weight of Stock A?(b) What is the portfolio weight of Stock B?
Answer:
Portfolio weight of Stock A=49.70%
Portfolio weight of Stock A=50.29%
Explanation:
Calculation for the portfolio weight of Stock A and Stock B
First step is to calculate the total amount invested in both portfolio weight of Stock A and Stock B
Stock A and Stock B Total amount invested=
(A 70 shares*$30 per share)+ (B 125 shares*$17 per share)
Stock A and Stock B Total amount invested=$2,100+$2,125
Stock A and Stock B Total amount invested=$4,225
Now let calculate the PORTFOLIO WEIGHT OF STOCK A
Using this formula
Portfolio weight of Stock A=Stock A/Stock A and Stock B Total amount invested
Let plug in the formula
Portfolio weight of Stock A=(70 shares*$30 per share)/$4,225
Portfolio weight of Stock A=$2,100/$4,225
Portfolio weight of Stock A=0.4970*100
Portfolio weight of Stock A=49.70%
Therefore the Portfolio weight of Stock A
will be 49.70%
Calculation for PORTFOLIO WEIGHT OF STOCK B
Using this formula
Portfolio weight of Stock B=Stock B/Stock A and Stock B Total amount invested
Let plug in the formula
Portfolio weight of Stock B=(125 shares*$17 per share)/$4,225
Portfolio weight of Stock B=$2,125/$4,225
Portfolio weight of Stock B=0.5029*100
Portfolio weight of Stock B=50.29%
Therefore the Portfolio weight of Stock will be 50.29%
International trade benefits a nation when:
a. no domestic jobs are lost because of trade.
b. all nations are specializing in producing what they do best.
c. its revenue from selling abroad exceeds its outlays from buying abroad.
d. its trading partners experience reduced economic well-being.
Answer:
C
Explanation:
I am pretty sure that this would be C, because it would not be preserving a nation if you tried to hurt it.
Answer:
all nations are specializing in producing what they do best.
A college education fund is to be accumulated by twenty level semi-annual deposits, the first due on Jan. 1, 2011. The fund is to provide sixteen quarterly withdrawals of $1000 each, the first due on Oct 1, 2020. The nominal annual rate of interest is 10% convertible semi-annually. What is the amount of each deposit?
Answer:
$395.74
Explanation:
the college fund requires 20 equal semiannual payments starting January 1, 2011 and the last one should be made on July 1, 2020.
first we must determine the effective rate of the fund:
effective rate = (1 + 10%/2)² - 1 = 10.25%
now we must determine the quarterly rate:
quarterly rate = (1 + r)¹/⁴ - 1 = 2.47%
the present value of the annuity:
PV = distribution x annuity factor
distribution = $1,000PV annuity factor, 2.47%, 16 periods = 13.08553PV = $1,000 x 13.08553 = $13,085.53
that means that by July 1, 2020, you need to have $13,085.53 in your college fund
FV of an annuity = contribution x annuity factor
FV = $13,085.53FV annuity factor, 5%, 20 periods = 33.066contribution = FV / annuity factor = $13,085.53 / 33.066 = $395.74
Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built-in flash memory card readers, wireless connectivity, and faster speed. Suppose you are in the market for a new personal printer. Make a list of the most important features needed to meet your needs, and then research printers to identify the best printer for your needs. Be sure to consider both the price of the printer and the price of consumables (such as paper and ink/toner) in your evaluation process
Answer:
A printer is a device that accepts text and graphic output from a computer and transfers the information to paper, usually to standard size sheets of paper. Printers vary in size, sophistication, speed, and cost. In general, more expensive printers are used for higher-resolution color printing.
Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built-in flash memory card readers, wireless connectivity, and faster speed.
The Six important printer qualities are:
Color: It is important for users who need to print pages for presentations or maps, photos and other pages where color is part of the information. Color printers can also be set to print only in black-and-white. Color printers are more expensive to operate since they use two ink cartridges (one color and one black ink, toner) that need to be replaced after a certain number of pages. Users who don't have a specific need for color and who print a lot of pages will find a black-and-white printer cheaper to operate. Resolution: Printer resolution (the sharpness of text and images on paper) is usually measured in dots per inch (dpi). Most inexpensive printers provide sufficient resolution for most purposes at 600 dpi. Speed: If you do much printing, the speed of the printer becomes important. Inexpensive printers print only about 3 to 6 sheets per minute. Color printing is slower. More expensive printers are much faster.Memory: Most printers come with a small amount of memory (for example, one megabyte) that can be expanded by the user. Having more than the minimum amount of memory is helpful and faster when printing out pages with large images or tables with lines around them (which the printer treats as a large image). Wireless connectivity : Specialized printer nowadays have wireless connectivity which allows user to communicate with the machine without physical operation. Like one can just give command to the printer to print their projects using their mobile phone while sitting on the couch. This feature might add extra bucks to the bill but its worth it. Printer languages The commands from the computer to the printer to tell the printer how to format the document being printed. These commands manage font size, graphics, compression of data sent to the printer, color, etc. The two most popular printer languages are Postscript and Printer Control Language.Conclusively the best printer will be the one which will provide pleasant color contrast, good resolution, enough memory, wireless connectivity and have better language settings.
If the European subsidiary of a U.S. firm has net exposed assets of 750,000 Euros, and the euro drops in value from $1.30/euro to $1.20/ Euro the U.S. firm has a translation:__________
a. gain of $75,000
b. loss of $75,000
c. gain of $65,000
d. loss of 546,923
Identify an activity that may not affect independence of mind but is likely to affect independence in appearance.
a. Payment of high audit fees dependent upon profitable financials.
b. Engagement of the CPA and payment of audit fees by a third party.
c. Dependence upon a client for a large percentage of audit fees.
d. Ownership of an immaterial indirect financial interest in the audited client.
e. Performance of valuation services and actuarial services for the same company.
Answer:
c. Dependence upon a client for a large percentage of audit fees.
Explanation:
The independence in appearance means that the auditor integrity, objectivity is compromised and the people have the faith in the auditor and it is based on the other interpretation
While on the other hand, the independent of mind means the auditor is fully independent and unbiased for taking the decisions
Therefore according to the given options, the option c is correct as the appearance of independent is impacted due to the more percentage in the audit fees
4. When the actual price of a good is above its equilibrium market price, competition
among
A. buyers will force the actual price upward.
B. sellers will force the actual price upward.
C. sellers will force the actual price downward.
D. buyers will force the actual price downward.
E none of the above.
Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.
Economies of scale occur when a firm's long-run average total cost curve is ___________________. a. upward sloping.b. vertical.c. downward sloping.d. horizontal.
Answer:
The correct answer is the option C: Downward sloping.
Explanation:
To begin with, the concept known as "Economies of Scale" is a vary famously term in the microeconomics theory due to the fact that it refers to the particular situation that a company achieves when their costs are at the lowest possible point in the long run becuase of the great volumen in production that the organization is starting to handle so that means that the more they start to produce the less the amount that the company will have to spend in the costs. Therefore that the curve in the graphic will be downward sloping due to the decrease of the prices in the costs implicating the amount that the company is handling.
Bravo's complete assets and liabilities are Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600, and Tools $300. Bravo's total assets are:_____.a. $11,100.b. $13,500.c. $11,500.d. $13,100.e. none of these.
Answer:
b $13,500
Explanation:
Assets are items that are used by a business organization for positive economic value .
Given that;
Accounts receivable = $800
Equipment = $10,000
Accounts payable = $4,200
Prepaid rent = $2,000
Supplies = $400
Bank loan = $1,600
Tools = $300
Total assets = Accounts receivable + Equipment + Prepaid rent + Supplies + Tools
Total assets = $800 + $10,000 + $2,000 + $400 + $300
Total assets = $13,500
Therefore, Bravo's total assets is $13,500.
Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will:
Answer:
Appreciate more
Explanation:
Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will appreciate more. This is because the shift in demand and supply will cause an increase in the value of the dollar. Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
When operating in a constrained environment, which products should be produced? a. products with the highest contribution margin per unit b. products with the highest contribution margin per unit of the constrained process c. products with the highest selling price d. products with the lowest allocated joint cost
Answer: B. products with the highest contribution margin per unit of the constrained process.
Explanation:
When operating in a constrained environment, the products that should be produced are the products with the highest contribution margin per unit of the constrained process.
This is essential for the company to maximize its total contribution margin. This in turn will help the company in realizing revenue and also maximizing profit.
100 points
Think of two methods used to improve productivity in business. Discuss your reasons for choosing these methods.
Answer:
Improve workplace conditions
Explanation:
environment that’s too hot or too cold distracts from concentration, as employees will spend more time walking around to get their coats or an electric fan. Ensure both heating and air-conditioning systems are in working order for when the relevant season comes around
Answer:
Improve workplace conditions
Explanation:
Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount? The sales invoice includes the terms 2/10, n/30?
Answer:
Use percentage value new value and old value
Van Hookie, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from the date of issue. If the bonds were issued at a premium, this indicates that:________
a. the effective yield or market rate of interest exceeded the stated (nominal) rate.
b. the stated rate of interest exceeded the market rate.
c. the market and stated rates coincided.
d. no necessary relationship exists between the two rates
Answer:
c
Explanation:
Which of the following best explains how the rise of machinery created an unfriendly relationship between industrialists and their employees?
A. The industrialist earned his income from the work of others.
B. There was a lack of unions.
C. The employees were underpaid.
Answer:
C
Explanation:
In as much as these are the only options given, then there has to be an answer there. Even though I fancy there being another answer.
But I'd say, the closest to the reason from the aforelisted is that the employees were underpaid. Since the advent of machineries, truth is that there wasn't going to be need for employees. This is because machines tend to have a much better output, better efficiency and won't need to be paid monthly in wages.
Since there isn't need for employees again, the industrialist tend to underpay the employees because they don't see their useful in the first instance
The rise of the use of machine is on the increase. The best explanation as to how the rise of machinery created an unfriendly relationship between industrialists and their employees is the employees were underpaid.
The industrialists did treat their workers bad. They make sure to keep wages as low as ever. Their attitude towards their employee was like if employee did not like the pay, the long hours and other working conditions he could quit and go to other places.
They were super-rich, living in great homes, living life lavishly abut their employees were paid little sum as if they do not have any choice.
Learn more about Industrialist from
https://brainly.com/question/10230728
In a monopolistically competitive industry, price:______
a. is most likely a bit higher than the competitive market price because of the cost of variety.
b. will exceed the monopoly price due to the destructiveness of competitive forces.
c. will be lower than the competitive price due to cost savings.
d. is contingent on the behavior of other firms because they are mutually interdependent.
Answer:
a
Explanation:
In a monopolistically competitive industry, price is most likely a bit higher than the competitive market price because of the cost of variety.
In a monopolistically competitive market, firms tend to set their prices to be higher than those of the marginal cost. This invariably translates to the fact that market is never really able to be productively efficient.
Firms in monopolistically competitive markets tend to wield the same power, since they're all price makers, they have a low degree of market power.
In a single period system, the target ________ is the balancing point between shortage costs and excess costs.
Answer: service level
Explanation:
A single period inventory model typically occurs to the organizations that order one-time items. In this case, such organizations can only get the right quantity when they order once in order to prevent loss.
In a single period system, the target service level is the balancing point between shortage costs and excess costs.
Which of the following describes the purpose of the Federal Deposit
Insurance Corporation (FDIC)?
O A. To manage the economy by controlling the money supply.
B. To set the required reserve ratio for banks in the United States.
C. To prevent the demand for withdrawals from rising above 10
percent
D. To make sure customers don't lose money if their bank fails.
Answer:
D. To make sure customers don't lose money if their bank fails.
Explanation:
The Federal Deposit Insurance Corporation, or simply the FDIC, is an independent agency whose mandate ensures customers do not lose their deposits should a bank or any other financial institution fails. The FDIC insures customer deposits up to a stated limit per person, per bank, per each account category. The insurance coverage is automatic to all account holders in an FDIC insured bank.
The Federal Deposit Insurance Corporation is financed by the insurance premiums paid by banks and other institutions. The FDIC’s scope covers checking accounts and savings such as money market accounts and certificates of deposit (CDs).
D is the answer!
source : ay p ex
Pablo owns a record store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Pablo sold 1,200 records. If Pablo sells 1,250 records this year (50 more than last year) and his average total cost increases to $1.28 million, we know that the: ________
a. average variable cost of selling records has decreased.
b. marginal cost of those 50 records is $80,000.
c. average fixed cost of selling records is unchanged.
d. marginal cost of those 50 records is $1.28 million.
e. average total cost of selling 1.250 records is $1,000.
Answer:
b. marginal cost of those 50 records is $80,000.
Explanation:
The computation is shown below:
The average cost of selling 1,200 records is
= $1,200,000 ÷ 1,200
= $1,000
Now
The average total cost of selling 1,250 records is
= $1,280,000 ÷ 1,250
= $1,024
Now for the extra 50 records, the marginal cost is
= $1,280,000 - $1,200,000
= $80,000
Hence, the correct option is b.
Match the jobs with the career clusters
FOR PLATO EXPLORING CAREER OPTIONS POST TEST!
Health Science
Hospitality and Tourism
Human Services
List of Careers:
- Radiologist
-Sociologist
-Concierge
-Nurse Practitioner
-Meeting Planner
-Adult Care Counselor
?
Answer:
Health Science - Radiologist, Nurse Practitioner
Hospitality and Tourism - Concierge, Meeting Planner
Human Services - Sociologist, Adult Care Counselor
There are different career: Health Science: Nurse Practitioner, radiologist. Hospitality and Tourism: meeting planner, concierge. Human Services: adult care counselor and sociologist.
Various occupations connected to healthcare and medicine are included in the health science career cluster. Radiologist and Nurse Practitioner are two professions that fall within this cluster.
The hospitality and tourism career cluster covers a variety of occupations that are connected to the management, marketing, and operation of eateries, accommodation, attractions, leisure activities, and travel-related services.
The human services career cluster encompasses a variety of occupations dedicated to helping people and communities.
Learn more about the career, here:
https://brainly.com/question/8825832
#SPJ2
Harrold is the project manager for his organization and he has seven people on his project team. Who is responsible for executing the project plan and creating the project deliverables?A. Project lead.B. Project manager and the project team.C. Project manager.
D. Project team.
Answer: D. Project team
Explanation:
The project team is responsible for executing the project plan and creating the project deliverables. They are also in charge of contributing to the success of the project by making sure that the project objectives are achieved.
Each team mate has a specific role that he or she is assigned and the team should execute the tasks assigned to them successfully.
Suppose apples come in two quality levels, low and high. At a store in the apple-growing region, the price of low-quality apples is $1 per pound, and the price of high-quality apples is $4 per pound. Johnny lives in the apple-growing region and buys eight pounds of each type. His marginal utility of apples is 3 utils for low-quality apples and 12 utils for high-quality apples.
a. Is Johnny maximizing his utility?
b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?
c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?
Answer:
a. Is Johnny maximizing his utility?
in order to determine if Johnny is maximizing his utility we must calculate the utils per dollar spent on apples:
low = 3 / $1 = 3 utils per $high = 12 / $4 = 3 utils per $since both types of apples yield the same utility per dollar spent, then Johnny is maximizing his utility.
b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?
low = 3 / $3 = 1 util per $high = 12 / $6 = 2 utils per $Johnny is no longer maximizing his utility since he should buy less-low quality apples and more high-quality apples
c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?
Since distribution costs increase the price of apples equally regardless of their quality, low-quality apples will be consumer more in the areas surrounding apple-growing fields. On the other hand, high-quality apples will be sold in larger amounts in areas far away from apple-growing fields. Distribution costs are based on weight and volume, not quality. That is why it is more profitable to sell high-quality goods far away.
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will:____________
a) increase
b) decline
c) not be affected
d) none of the above
Answer:
b) decline
Explanation:
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will decline. This happens because people lost trust and hastily withdrawn their money deposited with the bank.
Miller Nwagi will not ride in elevators because he perceives them to be confining boxes that could fall. He refused to visit a store, which was selling his favorite brand of pipe tobacco, because the store could only be reached with an elevator. This would be an example of how _____ influences determine consumer buying decisions
Answer:
Psychological influence
Explanation:
During consumption people sometimes experience Internal influences that are basically stemmed from their own lifestyle and also their way of thinking. These influences arise out of their personal thoughts, their self-concepts, their feelings and also attitudes, lifestyles, motivation and memory. We refer to these internal influences as psychological influences.
Psychological influences is why miller would not ride in elevators due to the perception he has formed internally about elevators. And hence the reason he wouldn't use one.
The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as:______.a. best payoff.
b. opportunity loss.
c. risk profile.
d. utility.
Answer:
b. opportunity loss.
Explanation:
The opportunity loss means the loss that arises by taking the difference between the profit i.e. optimal and the actual payoff received for a specific decision. It could occurred at the time when the best alternative is not picked up.
Therefore according to the given options, the option b is correct as it meets the criteria given in the question
Hence, all the other options are incorrect
ABC company had 8,000 in accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?
Answer:
Net income is reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000
Explanation:
Since it is given that there is $8,000 in account receivable out of which $2,000 would be estimated and recorded as a bad debt
So here the bad debt expense is recorded that means the expenses are increased that ultimately reduced the net income also at the same time the amount of receivable would also decreased by $2,000
Therefore the same is to be considered
An increase in a firm's tax rate will__________ if the firm has debt capital in its capital structure:
a. increase both the cost of preferred stock and debt.
b. decrease the cost of preferred stock.
c. increase the firm's WACC.
d. decrease the firm's WACC.
Answer:
d. decrease the firm's WACC.
Explanation:
As per WACC formula
WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )
By assuming the values to prove the answer
Weights
Common equity = 55%
Preferred Equity = 15%
Debt = 30%
Costs
Common equity = 15%
Preferred Equity = 8%
Debt = 12%
Tax rate is 15%
Placing values in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )
WACC = 8.25% + 3.06% + 1.2% = 12.51%
Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )
WACC = 8.25% + 2.7 + 1.2% = 12.15%
Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.
The combination of debt financing and equity financing that maximizes a firm's value is known as its:
Answer:
optimal capital structure
Explanation:
optimal capital structure can be regarded as a combination of
of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.
g how much will 5500 invested at the end of each year grow in three years, assuming a interest rate of 11%
Answer:
FV= $17,105
Explanation:
Giving the following information:
Annual investment= $5,500
Interest rate= 11%
Number of periods= 3
I will assume that the annual deposit is at the end of the year.
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500
FV= $17,105
I purchased my home for $297,000 in 2015. Today it is worth approximately $520,000. What has my compounded annual rate of return been on this investment over the five years that I have owned my home?
a. 68.35%
b. 13.67%
c. 10.98%
d. 54.9%
Answer:
A because Brainly is here for kids to cheat on.
Explanation: