Answer:
Rp = 3% + BP1 * 10.42% + BP2 * 6.1%
Explanation:
Portfolio A:
R_p = R_f + Beta1*Factor1 + Beta2*Factor2
32% = 3% + 1.6*F1 + 2*F2
Portfolio B
29% = 3% + 2.6*F1 - 0.2*F2
Solvig the equatios
3% = -F1 + 2.2*F2
F1 = 2.2F2 - 3%
F1 = 2.2F2 - 0.03
Substituting
29% = 3% + 2.6*(2.2F2 - 0.03) - 0.2F2
29% = 3% + 5.72F2 - 0.078 - 0.2F2
5.52F2 = 29% - 3% +0.078
5.52F2 = 0.26 +0.078
5.52F2= 0.338
F2 = 0.338/5.52 = 0.061
F1 = 2.2F2 - 0.03 = 2.2(0.061) - 0.03
= 0.1042
The return Beta relationship in this economy Rp = 3% + BP1 * 10.42% + BP2 * 6.1%
Answer:
I) Most are invested in fixed-income portfolios.
IV) The portfolio is fixed for the life of the fund.
Explanation:
Unit investment trusts is one in which Pools of money is invested in a portfolio which is fixed for the life of the fund. This is generally stocks and bonds which are redeemable units to investor for specific time. These investment portfolio have no board of directors. This is a type of mutual fund which offers investors having fixed portfolio of securities having definite life.
Maintaining quality involves producing what the customer wants while reducing errors before and after delivery to the customer.
Answer:
A) It will decrease prior service cost and, as prior service cost is amortized, will decrease pension expense.
Explanation:
<em>Prior service cost</em> is the cost of additional benefits that an employee is entitled to receive for service rendered over a period of time due to an amendment in pension plan.
<em>Prior service cost is amortized</em> by adding equal amount to each future period of service of each employee that are expected to receive the benefits of the amended pension plan.
Therefore,due to the extended retirement age, the prior service cost will increase and as the service cost is amortized, it will decrease the pension expenses of the company.
A physician can submit claim information prior to providing treatment UNDER PROSPECTIVE REVIEW PROVISION.
Prospective review occur when a physician is requested to present its claim for the medical services which he is going to render. This may be done in order to compare prices.<span />