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3 years ago

Your friend wants to open a clothing shop. A necessary capital resource is a (5 points)

Business

2 answers:

vivado [14]3 years ago

8 0

A place to open the shop because a capital resource is a good that is used to make other goods.

lianna [129]3 years ago

8 0

I believe the answer is: A place to open the shop

Capital resources would include all type of assets that are required for the company's main operation. This would cover things from the place of the operation (the shops) , the tools that is used for production, the machines that is used to increase efficiency, etc.

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What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B? Portfolio Average Retur

inn [45]

Answer:

The Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

Explanation:

<em>Solution</em>

Given that:

Now,

The Jensen’s alpha of a Portfolio is computed by applying the formula below:

Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return ) ) ]

For the information given in the question we have the following,

The Risk free rate of return = 3. 1%

In order to find the Jensen’s alpha we have to first get the following from the information given in the question :

1. Portfolio Return

2. Portfolio Beta

3.Market Rate of Return

Thus,

(A)Calculation of Portfolio Return :

The formula for calculation of Portfolio Return is given as:

E(RP) = ( RA * WA )+ ( RB * WB )

Where

E(RP) = Portfolio Return

RA = Average Return of Portfolio A ; WA = Weight of Investment in Portfolio A

RB = Average Return of Portfolio B ; WB = Weight of Investment in Portfolio B

For the information given in the question we have the following:

RA = 18.9 %, WA = 45 % = 0.45, RB = 13.2 %, WB = 55 % = 0.55

By applying the values in the formula we have

= ( 18.9 % * 0.45 ) + ( 13.2 % * 0.55 )

= 8.5050 % + 7.2600 % = 15.7650 %

(B). Calculation of Portfolio Beta:

Now,

The formula for calculating the Portfolio Beta is

ΒP = [ ( WA * βA ) + ( WB * βB ) ]

Where,

βP = Portfolio Beta

WA = Weight of Investment in Portfolio A = 45 % = 0.45 ; βA = Beta of Portfolio A = 1.92

WB = Weight of Investment in Portfolio B = 55 % = 0.55 ; βB = Beta of Portfolio B = 1.27

By Applying the above vales in the formula we have

= ( 0.45 * 1.92 ) + ( 0.55 * 1.27 )

= 0.8640 + 0.6985

= 1.5625

(C). Calculation of Market rate of return :

Now,

The Market Risk Premium = Market rate of return - Risk free rate

From the Information given in the Question we have

The Market Risk Premium = 6.8 %

Risk free rate = 3. 1 %

Market rate of return = To find

Then

By applying the above information in the Market Risk Premium formula we have

6.8 % = Market rate of Return - 3.1 %

Thus Market rate of return = 6.8 % + 3.1 % = 9.9 %

So,

From the following information, we gave

Risk free rate of return = 3.1% ; Portfolio Return = 15.7650 %

The Portfolio Beta = 1.5625 ; Market Rate of Return = 9.9 %

Now

Applying the above values in the Jensen’s Alpha formula we have

The Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return )) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * ( 9.9 % - 3.1 % ) ) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * 6.8 % ) ]

= 15.7650 % - [ 3.1 % + 10.6250 % ]

= 15.7650 % - 13.7250 %

= 2.0400 %

= 2.04 % ( when rounded off to two decimal places )

Therefore, the Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

7 0

3 years ago

Place each of the folowing transactions in one of the four components of expenditures:a. Boeing sells an airplane to the Air For

ozzi

Answer:

Boeing sells an airplane to the Air Force is purchases by the Government

Boeing sells an airplane to the American Airlines is Investment

Boeing sells an airplane to the Air France is net exports

Boeing sells an airplane to the Amelia Earhart is Consumption

Boeing builds an airplane to be sold next year is an Investment

Explanation:

Purchases by Government represent goods and services bought by Federal,State or Local tier of Government and Air Force is part of the Government

Investment refers to goods bought in order to produce other goods or services,since American Airlines would convey passengers in the airplane,no doubt it is an investment.

Net export exports relate to worth of goods and services provided to other nations less the value of such goods and services the foreign nations provided to ours.Since the sale to a foreign company,it is ultimately a net exports taking import as zero.

Consumption refers to sale of goods and services to private individuals intended for private use.

Building up stock for sale next year is an investment in inventory.

5 0

3 years ago

Which statement best describes the two billing cycle method that some credit card companies use

Alborosie

Answer:

Double-cycle billing is a method used by creditors, usually credit card companies, to calculate the amount of interest charged for a given billing period. It takes into account not only the average daily balance of the current billing cycle (usually one month), but also the average daily balance of the previous cycle.

Explanation:

idk...my mom helped me answer this for you

3 0

2 years ago

What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet? (c

vredina [299]

A liability (such as salaries payable) will be increased. Expenses are increased. Net income is reduced.

<h3>What is liability?</h3>

What a person or business owes is known as a liability, and the amount owed is typically monetary. The transmission of economic rewards, such as money, products, or services, settles liabilities over time. Having to pay anything to someone else under the law is known as having a liability. To pay for a business's continuous operations, liabilities are incurred. Accounts payable, accumulated costs, owed wages, and owed taxes are a few examples of liabilities.

What your business has that has the potential to generate future financial benefits are its assets.

What you owe other people is your liability. To put it simply, assets increase your financial security while liabilities decrease it.

Obligations aren't always a terrible thing. Some loans are taken out to buy new equipment, such as machinery or automobiles, which aids small businesses in running and expanding.

To learn more about liability visit:

brainly.com/question/18484315

#SPJ4

7 0

1 year ago

Which certificate is the lowest level certification that a personal finance manager requires to sell mutual funds, trusts, and v

Law Incorporation [45]

Which certificate is the lowest level certification that a personal finance manager requires to sell mutual funds, trusts, and variable annuities?

The answer is option B - series 6 certificate.

The series 6 certificate helps an individual to purchase or sell mutual funds, variable life insurance, municipal fund securities, variable annuities and unit investment trusts.

3 0

3 years ago

Read 2 more answers