Answer:
A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The standard deviation for the portfolio is <u>12.7</u>
Option D is correct
Explanation:
Wa: 0.4
Wb: 0.6
a^2: 144
b^2: 81
Cov(a,b): 225
Portfolio Variance:
: (0.4*0.4*144) + (0.6*0.6*81) + (2*0.4*0.6*225)
: 160.2
Portfolio Standard Deviation: 12.7
Answer:
A) On the 32,000 sale it will be considered a 18,000 gift to the buyer.
Because is above the 15,000 gift per person per year, it will trigger the gift tax.
B) 70,000 will generate a long-term capital gain of 20,000
C) gift of 5,000 it will not trigger the gift tax.
Explanation:
When the sale is below market value, it is treated as a gift to the buyer.
The capital gain or losses are considered using the adjusted basis.
Because Holly acquiredthe land for more than a year, it will be cosnidered a long-term capital gain if any.
Answer:
$3500 is deductible
Explanation:
The question is not complete . Please see the solution below :
The Investment Interest expense can be set off against Net Investment income ( Interest income - Investment expenses i.e $25000-$2000=$23000) to the extent and the remaining is carried forward to the next year. so here the investment interest expense is wholly set off against the interest income i.e $3500 is deductible
Answer:
Profit maximising price = 48
Explanation:
Total Cost : C (x) = 8x + 3
Demand Curve : p (x) = 88 − 2x
Total Revenue = p (x). x = x (88 - 2x) = 88x - 2x^2
Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)
MC = d TC / d Q = d (8x + 3) / d x = 8
MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x
Equating MR & MC ,
88 - 4x = 8 , 88 - 8 = 4x
x = 80 / 4 , x = 20
Putting value in demand curve,
p = 88 - 2x = 88 - 2 (20) = 88 - 40
p = 48
