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evablogger [386]
3 years ago
6

You own a portfolio consisting of the following​ stocks:

Business
1 answer:
kykrilka [37]3 years ago
6 0

Answer:

expected return is 15.8%

portfolio beta is 94.5%

Explanation:

a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have

0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158

Multiply the result by 100% yields 15.8%

B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;

0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945

multiply the result by 100% yields 94.5%

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Mary Smith took a car loan of $25,000 to pay back in 48 monthly installments at an interest rate of 8%. Compute the loan balance
Naya [18.7K]

Answer:

$9,233.

Explanation:

The balance of the loan after the 32th payment can be determined after constructing a loan amortization schedule for this car loan. To construct the amortization schedule, we need to first calculate the monthly instalments (PMT) as this is the missing parameter for our time value of money.

I am using a financial calculator here to calculate the monthly instalment :

PV = $25,000

P/YR = 12

I = 8%

N = 48 (years)

FV = $0

PMT = ?

Therefore, the monthly instalment PMT is  $610.32.

But, we need the balance immediately after the 32th payment, so we construct an amortization schedule - now that we have all the parameters.

On a financial calculator enter 1 INPUT 32, SHIFT AMORT.

Pressing the equal sign gives the principle then interest and finally the balance of this loan after the 32th payment. The balance you should get if you follow this procedure carefully is $9,233.

5 0
3 years ago
What are the three components of a basic accounting equation? Should a basic accounting formula balance at all times ? If yes ex
Kamila [148]
The formula is: Assets = Liabilities + Shareholders' Equity. The three components of the basic accounting formula are: Assets. These are the tangible and intangible assets of a business, such as cash, accounts receivable, inventory, and fixed assets
7 0
3 years ago
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases
eimsori [14]

Answer:

The correct answer is $800

Explanation:

Giving the following information:

Fulbright Corp. uses the periodic inventory system.

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Ending inventory= [(100 + 80 + 60)/3]*10

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3 years ago
A cartel differs from a monopoly in that
Lapatulllka [165]
A cartel differs from a monopoly in that B) businesses making the same product agree to limit production. A cartel is an agreement between producers of goods, usually primary products like oil or natural gas, who work together to set a price at an agreed upon price that is a distortion above of what the market's equilibrium price would be for the good without the cartel's intervention. 
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Suppose NanoSpeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a sh
marishachu [46]

Answer: Bond holders                                          

                 

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In the event of liquidation, bondholders are paid first because it is assumed that the decision makers should be punished for the liquidation and hence they should be paid at last.

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