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3 years ago

Select the best answer for the question.

Business

1 answer:

Lorico [155]3 years ago

6 0

Answer:

Explanation:

US dollar used to be backed by gold but this is not the case anymore. US dollar being as a flat currency is backed by governemnt through federal reserve.

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A person who is in the business of selling cars is called a:

True [87]

The person who sell cars would be salesmen

3 0

3 years ago

Read 2 more answers

Asset A and B have expected returns of 5% and 3% per year respectively. Their annual volatilities are both 20% and the correlati

Novay_Z [31]

Answer:

1. Weight of A=0.5, Weight of B= 0.5

2. Asset A has the highest shape ratio. The weight of A and B in the optimal risky portfolio that has the highest shape ratio is:

Weight of A= 0.105, Weight of B= 0.895

Explanation:

Expected return of Asset A= 5%Expected return of Asset A= 5%

Expected return of Asset B= 3%

Annual volatilities of Asset A= 20%

Annual votalities of Asset B= 20%

1. Correlation coefficient = 30% = 0.3 < 1

Risk Free Rate = 1% =0.01

1. Weight of A and B in portfolio with minimal risk is:

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Therefore,

CovXAXB = PAB (Volatility of A) (Volatility of B)

= 0.3 × 0.2 × 0.2

= 0.012

Hence,

Weight of A= (0.2)^2 - 0.012 / (0.2)^2 + (0.2)^2 - 2(0.012)

Weight of A= 0.04 - 0.012 / 0.04 + 0.04 - 0.024

= 0.028/ 0.08 - 0.024

= 0.028/ 0.056

=0.5

Weight of A = 0.5

Weight of B= 1 - Weight of A

Weight of B= 1 - 0.5

Weight of B= 0.5

2. Shape ratio of A= RA - Rf / β

= 0.05 - 0.01 / 2

= 0.04/2

= 0.02 =20%

Shape ratio of B= RB - Rf / β

= 0.03 - 0.01/ 2

0.02 / 2

=0.01 = 10%

So, Asset A has the highest shape ratio

Cov (XAXB) = PAB (Volatility of A) (Volatility of B)

= 0.03 × 0.2 × 0.1

= 0.006

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Weight of A = (0.1)^2 - 0.006 / (0.2)^2 + (0.1)^2 - 2(0.006)

= 0.01 - 0.006 / 0.04 +0.01 - 0.012

= 0.004/ 0.05 - 0.012

= 0.004/ 0.038

= 0.105

Weight of A = 0.105

Weight of B= 1 - 0.105

Weight of B= 0.895

3 0

3 years ago

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. Fo

soldi70 [24.7K]

Answer:

product line

Explanation:

A product line is a group of related products sold by a business under the same commercial brand.

For example, the company might produce a love Teddy for Valentine's Day, GI Teddy for Veteran's Day, Pilgrim Teddy for Thanksgiving, and Santa Teddy for Christmas.

4 0

3 years ago

Presented below are two independent situations.

rewona [7]

Answer: a)Interest expense for Year 2020=$46, 977.50 b) see explanation column

Explanation:

a) Amount of Note payable = $550,000

Present Value factor for 3 years at 12%

= PV = 1/(1+r) ^n

1/ (1+ 12%)^3 =(0.892857143)^ 3 = 0.71178

Present value of Note for land at 2020 = $550,000 x 0.71176 = $391, 479

.136

Interest expense for Year 2020= $391, 479.136 x 12%= $46, 977.50

b) Face value of note = $5,000,000

Present value factor for 4 years at 10 % =

= PV = 1/(1+r) ^n

1/ (1+ 10%)^4 =(0.909090909)^ 4 = 0.68301345

Present value of the note = $5,000,000 x 0.68301345= $3,415,067.28

Discount on note payable =$5,000,000 -$3,415,067.28 =$1,584,932.72

Journal to record amount of interest to report for 2020

Date Account Debit Credit

Jan 2020 Cash $5,000,000

Discount on notes payable $1,584,932.72

Notes payable $5,000,000

interest revenue $1,584,932.72

5 0

3 years ago

A count of supplies indicated that $104 of supplies had been used.

tankabanditka [31]

It can be assumed that $104 worth of Supplies have been used?

7 0

3 years ago