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timama [110]
3 years ago
10

At the beginning of the month, you owned $8,000 of General Dynamics, $7,000 of Starbucks, and $5,000 of Nike. The monthly return

s for General Dynamics, Starbucks, and Nike were 6.80 percent, −1.52 percent, and −0.62 percent. What is your portfolio return?
Business
1 answer:
guajiro [1.7K]3 years ago
8 0

Answer:

= $406.6

Explanation:

To calculate return of portfolio we first calculate weight of each asset

this can be done by finding total investment and then dividing each asset by total investment.

Total investment = 8000 + 7000 + 5000 = $20,000

General Dynamics     8000/20000 = 0.4 = W1

Starbucks                    7000/20000 = 0.35 = W2

Nike                             5000/20000 = 0.25 = W3

Now for portfolio return we can use the formula

P(r) = W1 * (Return on W1 asset) + W2 * (Return on W2 asset) + W3 * (Return on W3 asset)

So,

P(r) = 0.4 * (0.0680) + 0.35 * (-0.0152) + 0.25 * (-0.0062)

This gives us

Total Return % = 0.02033 or 2.033%

Simply multiply this cumulative weight to total portfolio worth

Total Return in $ = 0.02033 * 20000  = $406.6

Hope that helps.

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Gutierrez Company reported net income of $225,000 for 2017. Gutierrez also reported depreciation expense of $45,000 and a loss o
Anestetic [448]

Answer:

                        Gutierrez Company

                       Cash Flow statement

                          for the year 2017

                                                                     $

Net Income                                              225,000                

+ Depreciation                                            45,000

+ Decrease in receivable                           15,000

+ Increase in payable                                  17,000

+ Decrease in prepaid expenses            <u>  4,000 </u>

Net cash flow from operating activities  <u>306,000</u>  

Explanation:

Depreciation is an non cash expense so it will be added to the net profit for the calculation of cash flow from operating activities. Decrease in receivable, Increase in payable  and decrease in prepaid expenses result in the inflow of cash. So, they are all added in the operating income value.

4 0
3 years ago
In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of retur
harkovskaia [24]

Answer:

b. go down.

Explanation:

The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will <u>Go down</u>

5 0
3 years ago
Truth in Lending Disclosure is ______.
serious [3.7K]

C.I consumer right that protects individuals from extremely high interest rates

5 0
3 years ago
Aziz Industries has sales of $100,000 and accounts receivable of $11,500, and it gives its customers 30 days to pay. The industr
Natali [406]

Answer:

Effect on net income=$328.22

Explanation:

DSO Formula is:

DSO=(Account Receivable/Credit sales)x365

Current DSO is:

DSO=(11500/100000)x365

DSO=41.975 days

In order to calculate the amount lowered we replace Account Receivable in DSO formula by X. DSO is 27 days

27=(X/100000)x365

X=$7397.26

Now:

Decrease in Account Receivable =$11500 - $7397.26=$4102.74

Effect on net income=$4102.74 * 8%

Effect on net income=$328.22

6 0
3 years ago
At the current price level, producers supply $375 billion of final goods and services while consumers purchase $355 billion of f
prohojiy [21]

Answer:

a. above equilibrium. 

Explanation:

At equilibrium, quantity supplied equals quantity demanded.

Above equilibrium where price is higher, quantity supplied would be greater than quantity demanded. In the question above, supply is $375 billion of final goods and services while demand is $355 billion. This indicates that price levels is above equilibrium price.

Below equilibrium, quantity supplied would be less than quantity demanded.

I hope my answer helps you.

7 0
3 years ago
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