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Inessa [10]
3 years ago
15

A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bon

ds with a 16-year duration, and $18 million in six-month maturity T-bills. What is the duration of the bank's asset portfolio in years?
A. 6.50 years
B. 7.38 years
C. 11.51 years
D. 3.95 years
E. 4.83 years
Business
1 answer:
dalvyx [7]3 years ago
7 0

Answer:

A. 6.50 years

Explanation:

Let C represent consumer loans,

T represent T-bonds and

t  represent T-bills

Portfolio duration = wC*dC + wT*dT + wt*dt

w = weight of...

d= duration of ....

Find the weights;

Total amount invested = 75 + 39 + 18 = 132 mill

wC = 75 / 132 = 0.5682

wT = 39 / 132 = 0.2955

wt = 18 /132 = 0.1364

Portfolio duration = (0.5682*3) +(0.2955*16) + (0.1364*0.5)

= 1.7046 + 4.728 + 0.0682

= 6.50 years

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Answer:

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Explanation:

Telecommunications, networking, and wireless technologies are used regularly by most students, as those who are in studying years have grown with those technologies already developed. However, the rapid changes in technology that are common these days can become quite overwhelming, as they require users to constantly readapt to them. For example, our use of email has changed so much in the past years, with so many new lines of communication and new softwares that one has to learn how to use. And the more we get used to readapting, the more comfortable we can be when those changes become part of the workplace. It´s important to be prepared and to have the proper training to ensure the effective use of technology in such a fast-paced technological era.

7 0
3 years ago
Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2019: Time
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Answer:

The rate charged per hour of labor is 120.

Explanation:

Rate charged per hour of labor is given by:

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5 0
3 years ago
If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market
ahrayia [7]

Answer:

14.57%

Explanation:

A stock has a beta of 1.4

The expected return is 18%

The risk free rate is 6%

Therefore, the expected return on the market portfolio can be calculated as follows

18%= 6% + 1.4(market return-6%)

18%= 6% + 1.4market return - 8.4

18%= 6-8.4 + 1.4market return

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20.4= 1.4market return

market return= 20.4/1.4

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Hence the expected return on the market portfolio is 14.57%

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3 years ago
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Therefore, Alexandra only benefits if she itemizes her deductions while Susan will always get the full benefit of the deduction.

3 0
3 years ago
Question 1 (1 point)<br> Which of these is not expected when international trade occurs?
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Answer:

This is incomplete, I need the options to be able to answer this question

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2 years ago
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