Answer:
Weight w1 = 0.65
Weight w2 = 0.35
Expected return =10.75%
Explanation:
w1 + w2 = 1 ........... (1)
w1 = SD of asset 2/(SD of asset 1 + SD of asset 2)
w1 = 11 ÷ (6 + 11) ⇒ 0.65
∴ w2 = 1 - w1 ⇒ 1 - 0.65
w2 = 0.35
Expected return = Weighted average
[0.65 × 9] + [0.35 × 14] ⇒ 10.75%
Answer:
This question has a missing information. I have found the complete version and pasted it down below;
"Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The investment requires a single payment of <em>$1,500 today</em>. The return on the investment is % A. 4.195 B. 4.729 C. 5.361 D. 5.922 E. 6.961 "
Explanation:
This question requires you to find that discount rate given a single future cashflow. $2,000 is expected 5 years from today, hence the future value. $1,500 payment today is the dollar value today, hence the Present value.
Using a financial calculator, you will key in the following inputs;
Total duration; N = 5
Present value; PV = -1,500 (it's a cash outflow hence negative)
Recurring payment; PMT = 0
Future value; FV = 2,000
then find the rate by keying in CPT I/Y = 5.922%
Therefore, the return on the investment is 5.92%
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The company forecast sales:
January= $40,000
Variable and fixed selling and administrative expenses are as follows:
Variable Expenses:
Power cost (30% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense= $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,200 per month
Total= $18,200
For January
Total variable cost= 40,000*0.3 + 40,000*0.05= $14,000
Total fixed cost= 18,200
Total cost= $32,200
<u>Automatic stabilizers</u> are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation.
Automatic stabilizers are a type of fiscal policy designed to offset fluctuations in a country's economic interest thru their regular operation without extra, timely authorization from the government or policymakers.
Automatic stabilizers are mechanisms built into government budgets, without any vote from legislators, that increase spending or lower taxes when the economy slows.
Aggregate demand is the full amount of goods and services in an economy that consumers are inclined to pay for within a positive time period. Mixture demand is calculated as the sum of customer spending, investment spending, authorities spending, and the difference between exports and imports.
Learn more about Aggregate demand here brainly.com/question/1490249
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