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iren [92.7K]
3 years ago
7

A portfolio has an expected return of 12.3 percent. This portfolio contains two stocks and one risk-free security. The expected

return on stock X is 9.7 percent and on stock Y it is 17.7 percent. The risk-free rate is 3.8 percent. The portfolio value is $78,000 of which $18,000 is the risk-free security. How much is invested in stock X
Business
1 answer:
geniusboy [140]3 years ago
3 0

Answer:

Investment in stock X is worth $21,387.60

Explanation:

Expected Return of the protfolio is calculated:

Stock.X.return*invest.x + Stock.Y.return*invest.Y + Risk.free*invest.RF

Where:

  • Stock X return = 9.7%
  • Stock Y Return = 17.7%
  • Risk free = 3.8% (investment in Risk free = 18,000/78,000 = 23.08%)
  • Investment in X+Y = 1 - Invetment in RF = 1 - 0.2308 = 0.7692

So, replacing the numbers

0.097*x + 0.177*Y + 0.038*0.2308 = 0.123

Where X+Y = 0.7692, so X = 0.7692-Y

0.097*(0.7692-Y) + 0.177*Y = 0.123 - 0.0088

Then

0.0746 - 0.097*Y + 0.177*Y = 0.1142

0.08*Y = 0.0396

So Y = 0.0396/0.08 = 0.495 = 49.5%

X = 0.7692 - 0.495 = 0.2742 = 27.42%

27.42% * 78000 =

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Answer:

Specifying the role of price in an organization's marketing and strategic plans.

Explanation:

Pricing objectives can be described as the goals which puts an organization through on ways to place the prices of their products to potential customers. It makes the products more appealing to the customers. Pricing objectives involves determing the appropriate price for a particular good or service.

Pricing objectives helps companies in improving their market shares this is achieved by cutting down the cost of their products to drive customers to purchase them thereby giving the business a high competitive edge in the market.

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Nielsen Audio is in the process of attempting to get away from the paper-diary method of data collection by having people carry
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Answer:

A. Portable people meter

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The portable people meter also called the Nielsen meter or PPM for short is a device used to define listening habits on behalf of radio stations across the United states of America. It records media when it is being used and by who is using it. It's like a pager like device in which people carry out through out the day. The Nielsen then uses data it gets to produce monthly ratings of local reports for each markets.

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The client at the HIV clinic has come in complaining of unintended weight loss with diarrhea lasting over the last month. How is
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Answer:

The correct answer is Loss of 10% of usual weight.

Explanation:

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g In a very long run situation, monopolies earn: a. an economic profit of 1%. b. an economic profit of 100%. c. an economic prof
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Answer:

 b. an economic profit of 100%.

Explanation:

A monopoly is when there is only one firm operating in the industry. There are high barriers to entry of firms in a monopoly. Profit is maximised where MR = MC.

Economic profit is affected by the entry or exit of firms into the industry in the long run. Due to the high barriers to entry, a monopoly earns economic profit in the long run.

I hope my answer helps you

5 0
3 years ago
Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the t
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Answer:

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Peter's Pencils is a pencil producing firm in a perfectly competitive firm.

It produces 1,000 pencils an hour.

The total cost of producing 1,000 pencils is $500.

The market price of each pencil is $2.

The marginal cost of producing the last unit of a pencil at this point is $2.  

An individual firm in a perfectly competitive market faces a horizontal line demand curve which also represents the average revenue and marginal revenue.

This means that the marginal revenue earned from the 1,000th pencil is $2.  

The marginal revenue is equal to marginal cost, this implies that the firm is maximizing profits.

The average total cost of the firm is  

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= \frac{500}{1,000}

= $0.5

The average total cost is $0.5 which is lower than the price. This means that the firm is earning economic profits.

6 0
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