First we must calculate the expected return of the P portfolio: 0,60 x 0,14 + 0,40 x 0,10 = 0,124 = 12,4%.
The weight of the T banknotes in the total portfolio will be equal to the total weight less, the portfolio P. If the weight of the portfolio p is "w"
T = 1 - w
The expected return of the entire portfolio must be 11%
0.11 = w x 0.124 + (1 - w) x 0.05
w = 0,81.
Then, the amount invested in the Portfolio P = 0.81 * $ 1000 = $ 810
Then, the amount invested in banknotes T = 0.19% of $ 1000 = $ 190
you should invest 19% of your complete portfolio in Treasury bills
Shift in Agriculture Industry.
Agriculture industry consists of enterprises that are involved in harvesting and planting crops and plants, livestock feedings, logging wood and so on.
Over the last few years, there have been a numerous shift in the agriculture industry. Newly discovered farming techniques and advanced livestock breeding have lead to an increase in food production. New farming techniques have further lead to an increase in healthy population. Sustainable agriculture also have a positive impact in maximizing the proper utilization of the environment.
Based on the cost of the ATM fees per month, the total cost of the banking fees in 6 years is $1,296
<h3>What is the total of the banking fees?</h3>
The total fees charged by the bank as ATM fees can be solved by the formula:
= Fees per month x number of months
Solving for the total fees charged by the bank gives:
= 18 x 6 x 12 months a year
= 18 x 72
= $1,296
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Answer:
4.63%
Explanation:
Expected / Required Rate of return is the % return demanded by an investor while purchasing a shareholder. Preferred stock is assumed to pay a dividend for infinity, the price of the share is calculated as follows for the stock paying constant dividend:
Price: Dividend / Rate of return
$42.16 = 1.95 / Rate of return
Rate of return = $1.95 / $42.16
Rate of return = 4.63%