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2 years ago

8

Suppose that Larry, an economist from a business school in Georgia, and Megan, an economist from a nonprofit organization on the

West Coast, are arguing over budget deficits. The following dialogue shows an excerpt from their debate:

1 answer:

iVinArrow [24]2 years ago

3 0

Where is the dialogue? :)

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Name 5 banking task that can be done online

Schach [20]

- Check Account Balances
-View all of your bank accounts IRA's and securities
- Send Money
-Receive Money
- Add a new card to your account<span />

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2 years ago

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You currently own shares in Buckeye Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization

GarryVolchara [31]

Answer:

Option D is the correct option

Explanation:

To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,

Coefficient of variation(CoV) = Standard Deviation/Expected Return

CoV of Buckeye = 14%/20% = 0.7

CoV of Wolverine = 11%/12% = 0.9167

So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.

Hence, Option A

- Required target return of portfolio = 22%

Risk Free return = 8%

Buckeye Return = 20%

Let the weight of Buckeye be X ,& weight of risk free be (1-X)

Required return = (WRF)*(RRF) + (WB)*(RB)

22 = (1-X)(8) + (X)(20)

22 = 8-8X + 20X

14 = 12X

X = 1.17

SO, weight of Buckeye is 1.17 or 117%

while weight of Risk free is -0.17 (1-1.17) or -17%

Hence, ans is OPTION D

7 0

2 years ago

Mel suddenly finds an opportunity to sell boxed dinners. The new opportunity would require the use of the 30 percent unused capa

Llana [10]

Answer:

a) Total cost for making and buying the cookies = $900

b) Yes, she should continue to buy the cookies

Explanation:

Number of meals of order received = 300 meals

<u>Relevant cost:</u>

Variable cost per meal produced =

(cost of meal produced - Gross product)/Annual contribution margin

Variable cost per meal = (13500 - 4500)/3000

Variable cost per meal = 9000/3000

Variable cost per meal = $3

Total cost = cost per meal * number of meals

Total cost = 300 * 3 = $900

Total cost for making and buying the cookies = $900

b) Should Mel continue to buy the cookies?

Selling price = $3.50

Relevant cost = $3.00

Profit per meal from special request = $3.50 - $3.00

Profit per meal from special request = $0.50

Since she is making a profit of $0.50 per meal, she should continue to buy the cookies

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2 years ago

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What financial behaviors will typically lead to a low credit score?

Leviafan [203]

Here are some behaviors that will give you low credit score :

- If you always maxed out your credit card limits, it make you seems irresponsible
- If you never paid your credit bills on time
- If you always change your living address

but as long as you have a good history of paying your credit bills on time, your credit score will be fine

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2 years ago

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A cost associated with renting would be:

attashe74 [19]

The correct answer is C. title insurance

5 0

3 years ago