1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Montano1993 [528]
2 years ago
9

Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200

of A, short $100 of B and invest the short proceeds in Treasury Bills. What is the expected return of your portfolio?
Business
1 answer:
Tomtit [17]2 years ago
3 0

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

You might be interested in
Does the sec require the entity to disclose in the current reporting period the future effect that the accounting change is expe
nevsk [136]

Estimates of SEC made every period in the normal course of accounting for things like uncollectible accounts or inventory obsolescence do not need disclosure of such effects; nevertheless, disclosure is necessary if the impact of a change in the estimate is significant.

<h3>What is SEC?</h3>

After the 1929 Wall Street Crash, the U.S. Securities and Exchange Commission (SEC) was established as an independent agency of the federal government of the United States. The SEC's main goal is to uphold the law against market manipulation.

The Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes-Oxley Act of 2002, and other laws are enforced by the SEC in addition to the Securities Exchange Act of 1934, which established it. Section 4 of the Securities Exchange Act of 1934, also known as the Exchange Act or the 1934 Act and currently codified at 15 U.S.C. 78d, established the SEC.

To learn more about Securities Act,visit:

brainly.com/question/17329529

#SPJ4

7 0
1 year ago
To add text to a blank slide layout, _____.
svlad2 [7]
What you are going to do when you decide to include text to a blank slide layout is to just simply draw a text box and then enter text. The answer for this would be the second option. You can just drag in order to create a text box depends on the size of your preference. Hope this helps.
3 0
3 years ago
Read 2 more answers
Match the treatment of unrealized gains and losses on debt investments existing at the time of transfer between investment categ
lisov135 [29]
Option D

Because the answer is AFS to HTM- Amortize to net income over remaining life.
5 0
2 years ago
Toan Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at t
Lerok [7]

Answer:

$129,000

Explanation:

The computation of the unadjsuted cost of goods sold is shown below:

Before that we need to compute the total cost and cost per unit which are as follows

Total cost

= Beginning balance + Direct materials + Direct labor + Manufacturing overhead cost applied

= $66,700 + $494,500 + $158,700 + $269,100

= $989,000

And, Units completed is 23,000 units

So, the cost per unit is

= Total cost ÷ Number of units completed

= $989,000 ÷ 23,000 units

= $43

And, the number of units sold is 3,000 units

So, the cost of good sold unadjusted is

= Number of units sold × cost per unit

= 3,000 units × $43

= $129,000

5 0
3 years ago
as their financial advisor what part of jim and Jack financial plan would you encourage them to work on
Nadusha1986 [10]
It really depends on how old they are depending on how old they are I would add them to the 504 plan. Which would be for older people for retirement. 
6 0
2 years ago
Other questions:
  • Who focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired bene
    12·1 answer
  • By marketing an item, sellers attempt to increase the real value of an item.<br> True or false
    8·1 answer
  • Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the inv
    7·2 answers
  • A music streaming service provides its customers with recommendations based on their past listening behavior. This is an example
    13·1 answer
  • Donna Company makes three types of products. The company has two types of customers. The cost to serve all customers is $12,000
    12·1 answer
  • (b) What is market segmentation? Explain in detail with example the THREE (3) market segmentation of Alibaba. by giving referenc
    6·2 answers
  • John and Diana have been married for several years and share a goal of owning a 2nd home on the New Jersey shore in 8 years. The
    15·1 answer
  • Hey i need help with sum
    13·1 answer
  • Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021
    9·1 answer
  • Help please!!!!!!!!!!!!!!!!!!!
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!