That means they arnt paying you a lot or there not making more that there selling
Answer:
<h3>
<em><u>i</u></em><em><u> </u></em><em><u>d</u></em><em><u>o</u></em><em><u>n</u></em><em><u>'</u></em><em><u>t</u></em><em><u> </u></em><em><u>k</u></em><em><u>n</u></em><em><u>o</u></em><em><u>w</u></em><em><u> </u></em><em><u>i</u></em><em><u> </u></em><em><u>h</u></em><em><u>a</u></em><em><u>v</u></em><em><u>e</u></em><em><u> </u></em><em><u>n</u></em><em><u>o</u></em><em><u> </u></em><em><u>a</u></em><em><u>n</u></em><em><u>s</u></em><em><u>w</u></em><em><u>e</u></em><em><u>r</u></em><em><u> </u></em><em><u>t</u></em><em><u>o</u></em></h3>
Explanation:
<em>s</em><em>o</em><em>r</em><em>r</em><em>y</em><em> </em><em>a</em><em>g</em><em>a</em><em>i</em><em>n</em><em> </em><em>i</em><em> </em><em>n</em><em>e</em><em>e</em><em>d</em><em> </em><em>a</em><em>n</em><em>s</em><em>w</em><em>e</em><em>r</em><em> </em><em>t</em><em>o</em><em>o</em><em>,</em><em>a</em><em>n</em><em>y</em><em>o</em><em>n</em><em>e</em>
Answer:
1. Asset allocation
Explanation:
By allocating assets the investment advisor has found a way to balance risk and reward for its investors by considering their risk tolerance, goals and objectives towards the investments and the investment time frame with which the investors are to recieve their Return on Investment (ROI) or also called Profit.
Answer:The cost of capital that will make both investments equal is 17.045%
Explanation:
Investment A
$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.
Value of Investment A = 1500 000/r
Investment B
$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.
Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)
Value of investment B = 1236000/(r - 0.03)
1500 000/r = 1236000/(r - 0.03)
1236000(r) = 1500000(r - 0.03)
(r - 0.03) = 1236000( r)/1500000
r - 0.03 = 0.824r
r - 0.824r = 0.03 = 0.176r = 0.03
r = 0.03/0.176 = 0.170454545
R = 17.045%
The cost of capital that will make both investments to be equal is 17.045%
It would be d bc it not everyone does all of the things they are saying