Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
Answer:
Option (E) is correct.
Explanation:
EPS = $2.75
Book Value Per Share = $22.75
Shares Outstanding = 315,000
Debt Ratio = 44%
Total equity = Shares outstanding × Book Value Per Share
= 315,000 × $22.75
= $7,166,250
Total assets = Total equity ÷ (1 - Debt Ratio)
= $7,166,250 ÷ (1 - 0.44)
= $12,796,875
Total Dept = Total assets - Equity
= $12,796,875 - $7,166,250
= $5,630,625
Some time is impacted by the way you live with family and friends or in what rank of life style are you in. medium, small or large
Explanation:
The Journal Entry is shown below:-
a. Cash Account Dr, $660,000
To Notes payable $660,000
(Being amount borrowed is recorded)
b. Cash Dr, $705,600
Loss on transfer of receivable Dr, $14,400
To Accounts receivable $720,000
(Being transfer of accounts receivable is recorded)
Answer:
C. caretaker, nurturer
Explanation:
Generally, there are six images of managing change, which are: navigator, caretaker, coach, director, interpreter, and nurturer.
The caretaker and nurturer images have their foundations in the field of the organization theory.
The caretaker image of managing change, evaluates change and deals with issues within change. The caretaker image of managing change believes that managers are to receive change instead of initiating change.
The nurturer image of managing change ensures that change is plainly understood. It argues that no matter how little a manner of change is, it can have a very big impact in an organization
