Answer:
16.62%
Explanation:
First, use CAPM to find the expected return of each stock;
r= risk free + beta (market risk premium)
<u>UPS;</u>
r = 0.06 +(1.6*0.09)
r = 0.204 or 20.4%
<u>Walmart;</u>
r = 0.06 + (0.9*0.09)
r = 0.141 or 14.1%
Next find the return of portfolio;
Let UPS be represented by <em>U </em>and Wal-Mart by <em>W</em>
rP = wU*rU + wW*rW
P= portfolio
w= weight of...
r = return of....
rP = (0.40*0.204) + (0.60 * 0.141)
rP = 0.0816 + 0.0846
rP = 0.1662 or 16.62%
Therefore, the expected return on a portfolio is 16.62%
Answer: Ft means FaceTime.
Explanation: It makes me write at least 20 words so I have to ramble on. But if she asks to Ft she’s asking to FaceTime. Aka video call
Answer:
$628.49
Explanation:
Cash flows Discount factor Future value
$100 1.1449 $114.49
$200 1.07 $214
$300 1 $300
Future value $628.49
The discount factor is as follows
= (1 + interest rate)^number of years
For $100 the year is 2
For $200 the year is 1
For $300 the year is 0
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Answer:
31 per share
Explanation:
The computation of value per share is shown below:-
Share exchange ratio = MPS of Nelson ÷ MPS of George
= $38 ÷ $31
= 1.2258
MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER
= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)
= $60,800 + $142,600 ÷ 4600 + 1,961
= $203,400 ÷ 6,561
= 31 per share
Therefore for computing the value per share we simply applied the above formula.