Answer:
% in T bills = 18.92%, % in P = 81.08%
Explanation:
Portfolio return = Weighted average return
Return of portfolio P = 0.14*0.6 + 0.10*0.4
Return of portfolio P = 0.124
Let % money in T bills be x
0.11 = 0.05*x + 0.124*(1-x)
0.11 = 0.05x + 0.124 - 0.124x
0.014 = 0.074x
x = 18.92%
Hence, % in T bills = 18.92%, % in P = 81.08%
Answer:
$ 7,994
Explanation:
Fair Value of lease 60,000
Less Present value of garanteed residual value$ 2,368
($4000*1/1.06^9)
Amount to be recovered through periodic payment $ 57,632
PVAD (9 years ,6%) 7.20979
Minimum Lease at the beginning of each year (C/D) $ 7,994
Therefore the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6 $7,994
Answer:
Hilton Brews
The organizational growth strategy used by Hilton Brews is:
B. Diversification.
Explanation:
Diversification strategy is the corporate strategy that Hilton Brews has adopted to take advantage of the increased health benefits of teas by introducing a new line of organically grown and processed teas. Diversification strategy is different from other corporate growth strategies which Hilton Brews could have adopted, including market expansion, market penetration, and product development.
Answer:
D) AIG
Explanation:
We went back in time to 2008 and we are in the middle of the subprime mortgage crisis. This is an example of how mortgage backed securities and collateralized debt obligations worked.
The problem with this scenario is that in order for every company involved to be able to make a profit, the mortgages' interest rates skyrocketed which made it harder for families to pay back their loans. This eventually made the families lose their houses and that was the end to the housing bubble and the whole economy collapsed.
