False is correct answer.
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-Charlie
Answer:
Expected Return on Portfolio = 8.78%
Explanation:
The investment in stock A $2200 while investment in Stock B $3200 by adding both total investment of stock becomes $5400. Dividing Stock A and stock investment by total investment of portfolio gives the weight individual stocks in portfolio as Stock A has 40.7% while stock B has 59.3%. The expected return of Stock A is 7% while expected Return Stock B is 10% Multiplying the individual expected return of stock with weight of stock gives weighted return of individual stock and through adding weighted return of individual stock we get weighted average return of stocks at 8.78%.
Answer:
The total dollar interest payments for the six months is $303.33
Explanation:
The computation of the total dollar amount for the six month is shown below:
= (January financing × annual interest rate) ÷ (total number of months in a year) + (February financing × annual interest rate) ÷ (total number of months in a year) + (March financing × annual interest rate) ÷ (total number of months in a year) + (April financing × annual interest rate) ÷ (total number of months in a year) + (May financing × annual interest rate) ÷ (total number of months in a year) + (June financing × annual interest rate) ÷ (total number of months in a year)
= ($8,200 × 6.0%) ÷ 12 months + ($2,200 × 7.0%) ÷ 12 months + ($3,200 × 10.0%) ÷ 12 months + ($8,200 × 13.0%) ÷ 12 months + ($9,200 × 12.0%) ÷ 12 months + ($4,200 × 12.0%) ÷ 12 months
= $41 + $12.83 + $26.67 + $88.83 + $92 + $42
= $303.33
Answer:
the willingness of producers to supply a product.
Explanation:
Demand is all about how much customers are willing to buy or purchase. The demand determines the price of a commodity. Likewise, the supply of products is strongly related to the willingness of the producers. Sellers and producers can create artificial shortages to increase the prices or the can supply more than the demand.
Answer:
Explanation:
- The Yield to Maturity [YTM] of a Bond is calculated by using the following formula = Yield to Maturity [YTM] = Coupon Amount + [ (Face Value – Bond Price) / Maturity Years] / [(Face Value + Bond Price)/2]
- Where, Coupon amount = $1000 x 7% x ½ = $35
- Maturity Years = 12 years x 2 = 24 Periods
- Yield to Maturity [YTM] = Coupon Amount + [ (Face Value – Bond Price) / Maturity Years] / [(Face Value + Bond Price)/2]
- = $35 + [ ($1,000 – $985.48) / 24 Years)] / [($1,000 + $985.48) / 2]
- = [($35 – 0.605) / 992.74] x 100 = 3.46%
The Yield-to-Maturity (YTM) of this Bond = 3.46%
