Answer:
E-Mini futures = $2,939.25
Contract Size = 50
Portfolio Value = $10,000,000, Beta 1.5
Target Beta 2, Planning to increase the exposure
Calculation of Number of contracts needed = [Portfolio Size x (Target Beta - Actual beta)] / Contracts Size x Future Price
= (10,000,000 x (2 - 1.5) ] / 50 x 2939.25
= (10,000,000 x 0.5) / 146962.5
= 5,000,000 / 146962.5
= 34.02228459641065
= 34
So, you need to go Long 34 contracts to Increase the exposure.
Answer:
$339
Explanation:
Computation of the given data are as follows:
Income before tax in FIFO = $15,730
Tax rate = 30%
So, the Tax amount for FIFO = $15,730 × 30%
= $4,719
And, Income before tax in LIFO = $14,600
Tax rate = 30%
So, the Tax amount for LIFO = $14,600 × 30%
= $4,380
So, the difference in tax amount = Tax amount for FIFO - Tax amount for LIFO
= $4,719 - $4,380
= $339
Answer:
1. Steel
2. A Mutual Fund
3. The number of shares of stock sold in a previous day
4. Capital Gains
Explanation:
1. Investment commodities are investments in raw materials or primary goods that are still to be processed such as Agricultural produce and precious metals. Steel falls under this category.
2. A Mutual Fund works by pooling the resources and monies of various people and then investing it in various companies as a single portfolio. This way even though your funds might be little, you can still be able to diversify investments and make a good return.
3. When stock is listed for sale on a particular day, its trading figures for the previous day are listed as well.
4. Capital gain is a way to gain a return when the value of your investment has increased. When you sell that asset at the new price which is higher than the price you bought it, you make a capital gain on the transaction. For instance, R. Taylor bought stock for $100 in 2005 and it is now selling at $900 and Taylor sells it, Taylor now has a capital gain of $800.
Answer:
$9,744
Explanation:
In the case of the annual IRS depreciation deduction, the time period for each category assets are different. Like for commercial real estate, the time period is 39 years, for residential real estate, it would be 27.5 years.
The computation is shown below:
= (Purchase value of professional office center × remaining percentage) ÷ (applicable time period)
= ($475,000 × 80%) ÷ (39 years)
= ($380,000) ÷ (39 years)
= $9,744
Explanation:
the rent start on February first and paid 400 the expense rent are for 29 days on 13.7 USD per day
