Answer:
15 years
Explanation:
The target accumulated future amount is the future value of the initial investment(present value), hence, using the future value formula provided below we can determine the investment time horizon in years required to accumulate the target amount:
FV=PV*(1+r)^n
FV=$1,200,000
PV=$287,270
r=10%
n=investment period in years=unknown
$1,200,000=$287,270*(1+10%)^n
$1,200,000/$287,270=(1+10%)^n
$1,200,000/$287,270=(1.10)^n
take log of both sides
ln($1,200,000/$287,270)=n ln(1.10)
n=ln($1,200,000/$287,270)/ln(1.10)
n=15.00years
Answer:
Property of additive inverse
Explanation:
Given: Ramon got $2.5 million for the annual marketing budget such that he must spend the budget such that 
To find: property of addition that help us to know what the value of x must be
Solution:
1 million is equal to 
So,
According to property of additive inverse,
Given equation is
This equation can be written as 
So,
Answer:
Alpha for A is 1.40%; Alpha for B is -0.2%.
Explanation:
First, we use the CAPM to calculate the required returns of the two portfolios A and B given the risks of the two portfolios( beta), the risk-free return rate ( T-bill rate) and the Market return rate (S&P 500) are given.
Required Return for A: Risk-free return rate + Beta for A x ( Market return rate - Risk-free return rate) = 5% + 0.7 x (13% - 5%) = 10.6%;
Required Return for A: Risk-free return rate + Beta for B x ( Market return rate - Risk-free return rate) = 5% + 1.4 x (13% - 5%) = 16.2%;
Second, we compute the alphas for the two portfolios:
Portfolio A: Expected return of A - Required return of A = 12% - 10.6% = 1.4%;
Portfolio B: Expected return of B - Required return of B = 16% - 16.2% = -0.2%.
Answer:
It will affect Wendy's fast- food sales negatively.
Explanation:
Especially if the competitors have larger market share than Wendy's Fast-food. There will be a switch in consumers from Wendy's Fast-food to it's competitor, therefore reducing its sales and invariably reducing it's profit.
Therefore, Wendy's fast-food should be in tune with price fluctuation of it's competitors especially if it is a price decrease.
Answer:
Macroeconomics deals with events that affects the entire country or industry as a whole while Microeconomics affects individual members of the economy such as companies and people.
A. Congress recently passed the Tax Cuts and Jobs Act of 2017. MACRO
This Act will affect the entire nation so it will fall under Macroeconomics.
B. Amazon now has a 40% share of all e-commerce revenues. MICRO
Amazon is a single company in the market so things related to it will be considered on a micro economic level.
C. Tuition at the local university increased 11% from last year. MICRO
The local university like Amazon, is a single body in the economy and so they are a microeconomic player.
D. The U.S. unemployment rate fell below 4% in 2018. MACRO
The unemployment rate of a nation relates to the nation as a whole so this will fall under macroeconomics.
