Answer:
B) Your portfolio has a beta equal to 1.6, and its expected return is 15%
Explanation:
Since the correlation coefficient between both stocks X and Y is zero, when one stock has an expected return a little higher than 15%, the other stock will have an expected return a little lower than 15%, so both variations basically cancel out each other. So the average expected return for both X and Y will be 15%.
Answer:
standing
Explanation:
Standing -
It refers to the situation , when the party who has filed the complaint on the court is not able to show any proof for the case filed , is referred to as standing .
It refers to the type of some medical report , any eye witness ,or any clue or proof against the other party , can be provided to the court .
Hence , from the given scenario of the question ,
The correct term is standing .
Answer: a. 80% stocks, 20% bonds
Explanation:
Stocks are a better fit for young people for 2 reasons;
1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.
2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.
Fixed income is more for the older generation so that they may be sure of stable income while they are in retirement.
At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.
Answer:
$38.0 millions
Explanation:
Cash paid to suppliers of merchandise = Cost of Goods Sold + Increase in inventory - Increase in accounts payable
Therefore, we have:
Cash paid to suppliers of merchandise = $40.0 millions + $4.5 millions - $6.5 millions = $38.0 millions
Answer:
A. True
Explanation:
The debt utilization ratios is used to determine the comprehensive picture for the long term financial health of the company or the solvency of the company.
The debt ratio is defined as the financial ratio which shows the percentage of the assets of an organization which are provided through a debt. When the ratio is higher, the risk involved with the operation of the firm is more.
Thus, for a high debt utilization ratio, it will always increase the return of the organization on the equity for a positive return on the assets of the organization.
Thus, the answer is TRUE.
