Answer:
See below
Explanation:
The computation of return on investment is seen below
= (Controllable margin ÷ Operating assets) × 100
= ($78,000 ÷ $300,000) × 100
= 26%
Now, the controllable margin equals to = $78,000 + $12,000
= $90,000
And the new operating assets would be;
= $300,000 + $90,000
= $390,000
So, the new return on investment equals to
= ($90,000 ÷ $390,000) × 100
= 23.08%
Therefore, the return on investment decreased by
= 26% - 23.08%
= 2.92%
Answer:
The weight of the risky stock is 67.95% while that of the risk free asset is 32.05%
Explanation:
The two stock portfolio is made up of a risk free asset and a risky asset. Thus the portfolio beta is the weighted average of the individual sstock's betas. The beta for the risk free asset is zero.
Using the portfolio beta equation, we can calculate the weight of each stock in the portfolio.
Portfolio beta = rA * beta of A + rB * beta of B
Let x be the weight of the risk free asset in the portfolio. The weight of risky asset will be 1-x.
1.06 = x * 0 + (1-x) * 1.56
1.06 = 1.56 - 1.56x
1.06 - 1.56 = -1.56x
-0.5 / -1.56 = x
x = 32.05%
Thus, the weight of the risk free asset be 1 - 0.3205 = 0.6795 or 67.95%
Answer:
The answer is D =All of the above
Answer:
D) is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to double.
Explanation:
70/9.69.6 =7.2
Answer:
Which of the following is true if you decide to take the vacation?
(B) The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
Explanation:
The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
The cost of going on the vacation is less than the cost of the computer.