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2 years ago

All else held constant, which of the following will decrease the allocation to the risky asset?

Business

1 answer:

Paul [167]2 years ago

8 0

Answer:

an increase in risk aversion

Explanation:

This would cause a decrease in allocation to “risky” investments… at least that’s what we learned in MGT1104, for #2, not sure, would either be decrease in volatility or increase in exp. Return

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has an investment worth $56,000. The investment will make a special, extra payment of X to XYZ in 2 years from today. The invest

tia_tia [17]

Answer:

The payment X that will be made two years from now is approx $17940.

Explanation:

The present value of the investment is $56000. To calculate the value of X, we first need to calculate the present value of the fixed annual payments made to XYZ.

The fixed annual payments made to XYZ is an annuity as the payments is fixed, is paid out after equal intervals of time and for a limited time period.

To calculate the present value of annuity, we will use the attached formula.

PV of annuity = 12000 * [(1 - (1+0.132)^-5) / 0.132]

PV of annuity = $42001.62278 rounded off to $42001.62 or we can round it off to be approx $42000

If the present value of fixed payments is $42000, the present value of X should be,

Present value of X = 56000 - 42000 = $14000

To calculate the value of X that will be paid in 2 years, we will calculate the future value of $14000 after 2 years. The formula for future value is as follows,

FV = PV * (1+r)^t

Where,

r is the rate of return
t is the time periods

FV of X= 14000 * (1+0.132)^2

FV of X = $17939.936 rounded off to approx $17940

So, the payment X that will be made two years from now is approx $17940.

4 0

3 years ago

Financial statement data for the year ending December 31 for Flagg Co. are as follows: Sales $4,250,000 Accounts receivable: Beg

lord [1]

Answer:

Average Receivables= (600,000+630,000)/2=615,000

Days sales in receivables= Average receivables/ average sales per day

Average sales per day= 4,250,000/365=11,644

Days in receivables = 615,000/11,644=52.88

Explanation:

5 0

3 years ago

Which of the following allows for response tracking most easily?

Alex73 [517]

Answer: internet advertising

Explanation:

4 0

3 years ago

Shannon qualifies for a federal student loan and plans to pursue a degree program at an out-of-state school. Which action will h

swat32

Answer:

Shannon qualifies for a federal student loan and plans to pursue a degree program at an out-of-state school. Which action will help Shannon reduce the cost?

Shannon needs to apply opportunity cost which entails giving priority to the most important among the choices available, it is expedient of Shannon to apply for the loan and pursue a school within reach where the cost is minimal within the state rather than out of state school which would cost more.

Explanation:

3 0

4 years ago

Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.

mars1129 [50]

Answer:

The correct answer is the letter a. "Make more than 20 wedding cakes a month."

Explanation:

To maximize profit the marginal price of each cake must equal the marginal cost of each cake. The marginal cost is 300 and the marginal price is 5000/20 = 250. The marginal price of each cake (250) is less than the marginal cost of each cake (300), so Laura needs to make more than 20 cakes to increase her revenue and maximize her profit.

5 0

3 years ago