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HACTEHA [7]
3 years ago
9

You are considering how to invest part of your retirement savings.You have decided to put $ 400 comma 000 into three​ stocks: 51

% of the money in GoldFinger​ (currently $ 20​/share), 19 % of the money in Moosehead​ (currently $ 90​/share), and the remainder in Venture Associates​ (currently $ 6​/share). Suppose GoldFinger stock goes up to $ 38​/share, Moosehead stock drops to $ 60​/share, and Venture Associates stock rises to $ 13 per share.
a. What is the new value of the portfolio?b. What return did the portfolio earn?
Business
1 answer:
amm18123 years ago
5 0

Answer:

The new value of the portfolio = $698266.4

The return that the portfolio earn = 74.57%

Explanation:

GIven that;

Retirement amount = $400,000

Number of shares in GoldFinger = 51% of the 400,000/20

Number of shares in GoldFinger =  0.51 × 400000/20

Number of shares in GoldFinger = 10,200

Number of shares in Moosehead = 19% of 400,000/90

Number of shares in Moosehead = 0.19  × 400000/90

Number of shares in Moosehead = 844.44

Number of shares in Venture Associates = (1- (51%+19%) of 400000/6

Number of shares in Venture Associates = (1- (0.70) × 400000/6

Number of shares in Venture Associates = 0.30  × 400000/6

Number of shares in Venture Associates = 20000

∴

(a)

The new value of the portfolio = (10200 × 38 )+( 844.44 × 60) + (20000 × 13)

The new value of the portfolio = $698266.4

(b) the return that the portfolio earn =  (new value of the portfolio - retirement savings)/retirement savings

the return that the portfolio earn =  (698266.4  - 400000)/400000

the return that the portfolio earn = 0.7457

the return that the portfolio earn = 74.57%

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If the price of Product E decreasing by 9 % causes its quantity demanded to increase by 14 % and the quantity demanded for Produ
Alona [7]

Answer:

1.33

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity = percentage change in quantity demanded of good F / percentage change in price of good E

12% / 9% = 1.33

I hope my answer helps you

3 0
3 years ago
Today you put $1000 in the bank. your bank pays 5% interest, continuously compounded. in 3 years, how much money will you have i
IRINA_888 [86]

With continuous interest,
F=Pe^{rt}
where 
F=future value
P=principal = 1000
r=rate=5%
t=time=3 years

F=Pe^{rt}
=1000e^{0.05*3}
=1000e^{0.15}
=1161.83

Answer: The accumulated amount after three years is $1161.83
4 0
3 years ago
A ________ is an agricultural based community in which a number of families live in close proximity to each other, with fields s
aksik [14]
<span>Cluster of rural settlements </span>
3 0
3 years ago
The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original
mariarad [96]

Answer:

Option (C) is correct.

Explanation:

Given that,

Actual direct labor hours = 8,200

Actual rate = $12.40 per hour

Original  production = 1,100 units

Actual units produced = 1,000

Labor  standards = 7.6 hours per completed unit

standard rate = $13.00 per hour

Labor time variance:

= (Standard hours - Actual hours) × Standard rate

= (1,000 × 7.6 - 8,200) × $13

= 7,800 Unfavorable

3 0
3 years ago
The following is a trial balance of Barnhart Company as December 31, Year 1: Account Title: Debit Credit Cash 12,500 Accounts Re
Tanzania [10]

Answer:

The total amount of assets is 15,750.

Explanation:

Reproducing the trial balance below for clarity:

Account Title                  Debit           Credit

Cash                                12,500

Accounts Receivable     3,250

Accounts Payable                               2,800

Common Stock                                   6,600

Retained Earnings                              4,500

Service Revenue                                7,450

Operating Expenses       5,100

Dividends                         500

Total                                21,350         21,350

Calculation of Total Assets:

Total assets = Cash + Accounts Receivable

                    = 12,500 + 3,250

                    = 15,750

Note that among the given accounts, accounts cash and accounts receivable are assets; accounts payable is a liability; common stock and retained earnings are part of the capital; service revenue is a form of revenue; while operating expenses and dividends are expenses.

7 0
3 years ago
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