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givi [52]
3 years ago
6

6. If two portfolios are well-diversified with a risk-free rate of 3.11% and the S&P market return for the past year has bee

n 12.87%. Portfolio ABC has a return of 15.75% and has a beta of 1.4, while Portfolio XYZ returns 11.92% and has a beta of .85. Based on Jack Treynor's Model what are the Treynor Indexes for each stock, and assuming that the correlation of each the same, which stock would you add to your own portfolio based solely on the results of the Treynor Index? And what results would the Jensen Model provide and what would be your decision then?

Business
1 answer:
SSSSS [86.1K]3 years ago
4 0

Answer:

Answer 1---- D. none of the above

Answer 2---- B. the project will delay by one day

Explanation:

See attached image

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An electronic card that is directly connected to a checking account is known as a ____.
dalvyx [7]
C) Credit card is an electronic card directly connected to a checking account
8 0
3 years ago
Read 2 more answers
PB8.
Maurinko [17]

Answer:

Products         Selling price   Unit variable cost

                                $                       $

Junior                     50                      15

Adult                       75                      25

Expert                     <u>110 </u>                   <u> 60</u>

Total                      <u> 235 </u>                  <u> 100</u>

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost  

= $235 - $100

= $135

Break-even point in units

= <u>Fixed cost</u>

  Contribution per unit

= <u>$114,750</u>

  $135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

                     Income Statement    

                                                               $

Total contribution ($135 x 850 units)   114,750

Less: Fixed cost                                     <u>114,750</u>

Net profit                                                   <u> 0</u>

                                                                                                                                                                             

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

4 0
3 years ago
When using a __________ strategy, there is no change in either the basic product line or the markets served. Instead, increased
Dima020 [189]

Answer: market development

Explanation: In simple words,market development refers to the strategy in which a firm tries to cover new market or increase its sales in the existing market through promotion or product development etc.

These strategies are usually used by the multinational corporations that are going to start their business in some new foreign country.

Hence from the above we can conclude that the correct option is B.

6 0
3 years ago
Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost fo
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

= $44,990,562

6 0
3 years ago
When Callie developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she wa
Korolek [52]
<span>When Callie developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she was engaging in? Concept testing. Concept testing is the act of getting opinions/reactions to a product or service prior to the product or service entering the market. This helps gage consumer interest when pulling in a group of potential customers. </span>
3 0
3 years ago
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