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zysi [14]
3 years ago
7

Consider the single factor APT. Portfolio A has a beta of .2 and an expected return of 13%. Portfolio B has a beta of .4 and an

expected return of 15%. The risk-free rate of return is 10%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio __________ and a long position in portfolio _________.
A. A;AB. A;BC. B;AD. B;Bplease explain the answer
Business
1 answer:
lesya [120]3 years ago
4 0

Answer:

C. B;A.

Explanation:

A: 13% = 10% + 0.2F; F = 15%; B: 15% = 10% + 0.4F; F = 12.5%; therefore, short B and take a long position in A.

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While harry was intoxicated, he sold his car to ben for substantially less than its fair market value. this contract is consider
VMariaS [17]
The answer to this question is that the contract is voidable. A voidable contract specificallt means that the contract can still be implemented or affirmed or rejected by one of the parties due to valid reasons. A situation where in a contract can be voidable is when the other party is not in the capacity to enter into a contract.
7 0
3 years ago
If an advertiser places a TV commercial using a​ lonely, lost puppy to sell its​ products, then that advertiser is said to be ut
ryzh [129]

Answer:

correct answer is Sadvertising

Explanation:

these type of advertiser is said to be Sadvertising because it is that type of advertising by which advertiser creator is use some certain type of strategy by which they play on peoples emotion and feeling of sadness.

nowadays emotional advertising become popular in the recent year,  

many firms work for creating strong emotional ties about their product

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5 0
3 years ago
In order to update a production process, a company can spend money now or four years from now. If the amount now would be $20,00
timama [110]

Answer: $34,980.13

Explanation:

The amount that the company will spend 4 years from now is simply the future value of the amount that it can spend today.

The amount to be spent today is $20,000 so the amount to be spent 4 years from now is the future value of $20,000:

= Amount * (1 + rate) ^ number of years

= 20,000 * ( 1 + 15%)⁴

= $34,980.13

5 0
3 years ago
"a(n __________ accepts savings and checking account deposits and provides home mortgage loans."
zaharov [31]
The answer that will fill in the blank is savings and loan association. It is because a savings bank has the capability of providing an individual the ability acquire loans and that they could save and deposit on their bank. The loan association also provide these instances for they have the capability to do so.
7 0
3 years ago
Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $284,0
Anastaziya [24]

Answer:

11%

Explanation:

The computation of the annual rate of return is shown below:

Annual rate of return = Average annual income ÷average investment

where,

Average investment = (Initial investment + Salvage value) ÷ 2

= ($284,000 + $74,000) ÷ 2

= $179,000

And,

Average annual income is

= $60,490 - $40,800

= $19,690

So, the annual rate of return is

= $19,690 ÷ $179,000

= 11%

We simply applied the above formula

7 0
3 years ago
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