All categories

2 years ago

Macro events only are reflected in the performance of the market portfolio because_________.

1 answer:

4 0

Macro events only are reflected in the performance of the market portfolio because the specific risks have been diversified away.

A market portfolio is a theoretical bundle of investments that consists of each kind of asset to be had within the investment universe, with each asset weighted in proportion to its total presence in the market. The predicted return of a market portfolio is equal to the expected go back of the market as a whole.

The market portfolio is a basket of assets created by an investor the use of varied set of investments. The basket can encompass securities like pension plans, mutual funds, shares, actual property, bonds, foreign currencies, and assets like silver, gold, coins, bitcoins to call some.

The basic expected return method includes multiplying every asset's weight in the portfolio via its anticipated return, then including all the ones figures together. In different words, a portfolio's anticipated return is the weighted average of its personal components' returns.

Learn more about market portfolio here: brainly.com/question/13673468

#SPJ4

You might be interested in

Jeff Co. sells its giant cheese wheels for $36 per wheel. The contribution margin ratio is 75% and total fixed costs are $270,00

Damm [24]

Answer:

Level of sales in dollars in order to generate a profit of $54,000 Fixed cost + Target profit/Contribution per unit $270,000 + $54,0000/0.75

= $432,000

Number of units to be sold

= Level of sales/Selling price

= $432,000/$36

= 12,000 units

The correct answer is A

Explanation:

In this case, we need to calculate level of sales in dollars, which is fixed cost plus target profit divided by contribution margin ratio. Then, we will calculate no of units to be sold, which is the level of sales divided by selling price.

7 0

3 years ago

Blue Corporation has a deficit in accumulated E & P of $300,000 and has current E & P of $225,000. On July 1, Blue distr

Rufina [12.5K]

Answer:

Sam's dividend income is $225,000 and has a reduction of stock basis of $27,500

Explanation:

From the example ,

Given that,

Sam stock is =$52.500

Blue corporation has deficit in accumulated E and P which is =$300,000

Blue corporation has current E and P of = $225,000

Blue distributes $250,000 to its shareholder on July 1st

Therefore,

Blue corporation has a current E & P of $225,000, to an extent, Sam has a taxable dividend. The remaining $25,000 reduces his basis stock.

Sam has an income dividend of $225,000 and reduces his stock basis to $27,500.

6 0

3 years ago

Read 2 more answers

Leo purchased a stock for $47.10 a share, received a $1.74 dividend per share and sold the shares for $50.10 a share. During the

kondaur [170]

Answer:

6.96%

Explanation:

Find nominal expected return;

Nominal expected return = [(Dividend + New Price -Old Price) /Old price]*100

= [ (1.74 +50.10 - 47.10) / 47.10 ]*100

= (4.74 / 47.10)* 100

= 0.100637 *100

=10.0637%

Real rate of return = Nominal return - inflation rate

Inflation rate = 3.1%

Real rate of return = 10.0637% - 3.1%

= 6.96%

4 0

3 years ago

Your cell phone plan costs $34.99 per month plus $0.14 for each text message you send or receive. You have at most $38 to spe

amm1812

21.5, so maximum 21 text messages

4 0

3 years ago

In what way(s) do private loans differ from federal loans? interest rates are based on credit history fewer repayment options co

seraphim [82]

All answers are correct is the correct option .

What is the advantage of federal loans over private loans?

Private loans and some credit card interest rates are frequently significantly more expensive than the fixed interest rate. Look up the APRs for federal student loans right now.
The interest rate is predetermined and may be significantly less than those for some credit cards and private loans.

What distinguishes private loans from federal loans?

The main distinction between federal and private loans is that federal loans are provided by the government, whereas private loans are provided by banks, credit unions, and other financial institutions.

Learn more about federal loans

brainly.com/question/16724065

#SPJ4

4 0

2 years ago