Answer:
(a) $18,000
(b) $3,600
Explanation:
(a) Profit would be:
= (No. of shares × Undervalued) - (No. of shares × Overvalued)
= (1,800 × $16) - (1,800 × $6)
= $28,800 - $10,800
= $18,000
(b) Only half your order will be filled.
With rationing (and being an uninformed investor) we expect our profits:
= (No. of shares × Undervalued) - (No. of shares × Overvalued)
= (900 × $16) - (1,800 × $6)
= $14,400 - $10,800
= $3,600
Answer:
Treaty of Versailles
Explanation:
The terms which caused the most resentment in Germany were the loss of territory, the war guilt placed solely on Germany, the deliberate effacement of the German military and the demands of reparations.
Answered by NONE other than the ONE & ONLY #QUEEN herself aka #DRIPPQUEENMO!!!
HOPE THIS HELPED!!
Answer:
$69,378.96
Explanation:
The first step is to determine the future value of Jill's balance
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$866,000(1.09)^8 = $1,725,559.25
the second step is to determine the future value of the balance in Bob's account
$482,000(1.09)^8 = $960,415.19
The difference between Jill and Bob's future value amount is 765,144.06. this has to be the future value of bob's yearly savings
yearly savings = 765,144.06. / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
(1.09^8 - 1) / 0.09 = 11.028474
765,144.06. / 11.028474 = $69,378.96
Answer:
9.62%
Explanation:
Re = Rf + (B x Rp)
Re = cost of equity = 9.775%
Rf = risk free rate = 4%
B = beta = 1.05
Rp = risk premium = ?
Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%
Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}
Re portfolio = 4% + 5.6249% = 9.62%
