X $4000
Y $6000
Explanation:
Let w be invested in Stock X,
Correlation = -1
Standard Deviation = w(0.75) - (10,000 - w)(0.50)
So,
For standard Deviation to be 0,
0 = 0.75w - 5,000 + 0.50w
w = $4,000
Amount invested in Stock X = $4,000
Amount invested in Stock Y = $6,000
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Answer:
$368,000
Explanation:
In order to appraise the property using the capitalization approach, we must first determine a net cash flow:
net cash flow = $48,000 - $3,600 - $15,000 = $29,400
Now we calculate the property value using the perpetuity formula:
property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?
<u>Answer:
</u>
The best choice would be to go for a job that offered full salary and benefits.
<u>Explanation:
</u>
- The remuneration offered by a job is ample enough, one prefers to ignore the absence of other benefits.
- On the other hand, there are people who prefer the benefits dispensed by the job over the salary offered by the job.
- When both these preferences are amalgamated, a job that offers both the salary and the benefits would be deemed to be the best choice.