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Natali [406]
3 years ago
8

You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities,

X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. What would be the dollar value of your positions in X, Y, and the T-bills, respectively, if you decide to hold a portfolio that has an expected outcome of $1,120? Group of answer choices a.$568; $54; b.$378 $108; c.$514; $378 d.$378; $54; e.$568 $568; f.$378; $54
Business
1 answer:
Nesterboy [21]3 years ago
8 0

Answer:

c)$568; $378; $54

Explanation:

($1,120 - $1,000)/$1,000 = 12%

(0.6)14% + (0.4)10% = 12.4%

12% = w5% + 12.4%(1 - w)

w = .054

1-w = .946

w = 0.054($1,000)

= $54 (T-bills)

1 - w = 1 - 0.054 = 0.946

0.946($1,000) = $946

$946 x 0.6 = $568 in X

$946 x 0.4 = $378 in Y.

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"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following
natita [175]

Answer:

A perceptual market shows perceptions of customers about the attributes of a business happening now.  Therefore, the reason stated below is not a valid one to support the usage of this graphic

d"It’s a way to show the position of the company in ten years."

Explanation:

A perceptual map offers the possibility of illustrating the perception of different products in one market in terms of different attributes: e.g. quality, price, warranty, service, design and so on.

The senior managers can take valuable decisions when looking how the market perceives the product sold by the company related to the competitors.

See the image attached to have an idea of how a perceptual map looks like.

8 0
3 years ago
The export supply curve is the portion of the domestic supply curve below the no-trade equilibrium price. True or false
german
That statement is False

Even though is true that export supply is a portion of the domestic supply, but the moment there's an export of products,  the curve will curve above the no-trade equilibrium price ( which only stated the equilibrium price when there's no international trade) 
8 0
3 years ago
Assume a companys income statefor year 9 is as follows:
Fofino [41]

Answer:

14.91 and 24.77%

Explanation:

The computation of the company interest coverage ratio is shown below:-

Interest coverage ratio = Earning before interest and tax ÷ Interest

= $161,000 ÷ $10,800

= 14.91

Operating profit margin = (Earning before interest and tax ÷ Revenue) × 100

= $161,000 ÷ $650,000 × 100

= 24.77%

Therefore we have applied the above formula and hence option is not available.

6 0
3 years ago
Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid for immediately following
UNO [17]

Answer:

C. Thursday

Explanation:

Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid on Thrusday immediately following the auction date.

Federal reserves conduct treasury bill auction on Monday or Tuesday. Treasury bills are auctioned weekly and one year Treasury bill are auctioned monthly. Amount of securities represented by non competitive bills are withheld from auction and are filled with average winning yield, these bids are taken priority.

3 0
3 years ago
You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on
jeyben [28]

Answer:

$63,852

Explanation:

The computation is shown below:

a) PV of payments is

= $23,500 × (1.07^30 - 1) ÷ (0.07 × 1.07^30)

= $2,91,612

b) The Loan PV of payments is $3,00,000

c) And, the Balloon payment required is

= (Borrowed amount - loan PV payments) × (1 + rate of interest)^number of years

= ($300,000 - $291,612) × 1.07^30

= $63,852

5 0
3 years ago
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