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Degger [83]
3 years ago
11

Suppose that all stocks can be grouped into two mutually exclusive portfolios (with each stock appearing in only one portfolio):

growth stocks and value stocks. Assume that these two portfolios are equal in size (market value), the correlation of their returns is equal to 0.6, and the portfolios have the following characteristics: The risk free rate is 3.5%. The expected return on the market portfolio (which is a 50-50 combination of the value and growth portfolios) is closest to: Select one: a. 13.5% b. 19.0% c. 12.0% d. 15.0%
Business
1 answer:
Otrada [13]3 years ago
6 0

Answer:

option a 13.5%

Explanation:

                       Expected

                                Return           Volatility

Value Stocks           0.12             14%

Growth Stocks   0.15            24%

<u>Solution</u>

Expected return on market portfolio = Weight of value stock * return of value stock + weight of growth stock * value of growth stock

Expected return on market portfolio = 0.5 * 0.12 + 0.5 * 0.15

Expected return on market portfolio = 0.06 + 0.075

Expected return on market portfolio = 0.135 or 13.5%

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What three major federal taxes bring in most revenue ?
kumpel [21]

Income taxes, payroll taxes, and corporate income taxes.

Income taxes = individual employees pay out of their earnings

Payroll Taxes = social security tax, medicare, and unemployment tax. These are paid partially by the employees and partially by the employers

Corporate income taxes = paid by businesses as a percentage of their profits

6 0
3 years ago
Raymond Chandler wrote classic American detective stories. By always using certain roles for his characters and props that were
OleMash [197]

Answer:

Cultural formula

Explanation:

Cultural formula can be described as a situation there is tend to a consistent occurrence of certain roles and props in a series of media events.

Cultural formula can be employed in a novel through the use of certain roles for characters and props that go along with the genre.

Therefore, Chandler's novels followed a cultural formula.

8 0
3 years ago
Bernard is a trainee accountant. His manager asked him to record a loss on the sale of machinery in the business’s temporary acc
Agata [3.3K]

Answer:

Gain and loss accounts

Explanation:

Gain and loss accounts are a form of temporary accounts that are utilized to gather combined sales and purchases that has an effect on the profit or loss of business activities over a given period, which is typically in a year. For example, the loss on property sold account.

Hence, in this situation, the correct answer to the question is known to be a GAIN and LOSS ACCOUNT.

6 0
3 years ago
Cost Behavior Prepare income statement in two formats Farnsworth Drycleaners has capacity to clean up to 7,500 garments per mont
Lemur [1.5K]

Answer:

(1)

Fees revenues 42,600

Total expenses 1.92 x 4260  = 8179.2

<em>Net income 34,420.8</em>

<em>(2)</em>

Fees revenues 42,600

Variable cost  2,982

Contribution Margin 39,618

Fixed Cost 14,400

Net Income 25,218

Explanation:

(1)

We multiply by the garment cleaned

10 x 4,260 = 42,600

0.7 x 4,260 = 2982

and distribute the fixed cost among the normal capacity

14,400 / 7,500 = 1.92 fixed cost per garment cleaned

.7 + 1.92 = 2.62 cost per garment

(2)

We do not include the fixed cost in the unit cost, we subtact them completely as an expense.

8 0
3 years ago
John Park lives in Anytown, Missouri. He rents an apartment on Broad Street. He has one credit card with National Bank. He pays
alexandr1967 [171]

Answer:

its 1,3,4,6

Explanation:

just told me on edg

7 0
3 years ago
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