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Lyrx [107]
3 years ago
13

Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the

Business
1 answer:
algol133 years ago
5 0

Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

Expected return on the market portfolio, E(r_m) = 12 %

Standard deviation on the market portfolio, σ_p = 20%

Risk-free rate, r_f = 5%

E(r_c) =  r_f + [  E(r_p)  - r_f ] × ( σ_c ÷ σ_p)

         = 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

= 8.5%

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The buyer notifies the seller in writing of a termination of the contract under the Loan Objection Deadline. What happens to the
-BARSIC- [3]

Answer:

The earnest money must be returned to the buyer.

Explanation:

The loan objection deadline sets a specific by which the buyer must present a written notification to the seller stating that he/she will not be able to purchase the property due to problems related to obtaining a mortgage loan (or really any other reason, since only the buyer knows about his/her loan status). After this date, if the buyer cannot secure the mortgage loan and finish the purchase, the earnest money will be lost and must be given to the seller.

5 0
3 years ago
A company invested​ $45,000 in Yale Co. stock. The investment represented​ 5% of the voting stock of Yale Co. If the Yale Co. st
hjlf

Answer:

the dividend revenue account is credited

Explanation:

As we know that the dividend is the company profit that is divisible and the same is to be issued to the shareholder with respective to the number of shares purchased

In the case when Yale Co. paid the dividend so here the dividend revenue account is credited in the case when the company received the dividend

Hence, the dividend revenue account is credited

3 0
3 years ago
Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?
Annette [7]
It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>
8 0
3 years ago
Read 2 more answers
Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the followi
Airida [17]

Answer:

$555,900

Explanation:

To determine the FVI amount that should be recorded, all closing costs must be added to the initial purchase price of the land

∴ = $490,000 + $29,000 + $1,900 + $6,000 + $29, 000

 =$555,900.

4 0
3 years ago
Jakarta Company is a service firm with current service revenue of $500,000 and a 40% contribution margin. Its fixed costs are $8
Lady_Fox [76]

Answer and Explanation:

The computation of the margin of safety is shown below:

As we know that

margin of safety = Actual sales - break even sales

For Jakarta, it is

= $500,000 - ($80,000 ÷ 0.40)

= $500,000 - $200,000

= $300,000

And, for maldives, it is

= $6,620,000 - ($2,151,500 ÷ 50%)

= $2,317,000

7 0
2 years ago
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