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Free_Kalibri [48]
3 years ago
5

You own a portfolio that is invested 20 percent in stock A, 30 percent in stock B, and the remainder in stock C. The expected re

turns on these stocks are 3.7 percent, 14.5 percent, and 18.2 percent, respectively. What is the expected return on the portfolio?
Business
1 answer:
timurjin [86]3 years ago
4 0

Answer:

The expected return on the portfolio is 14.19%.

Explanation:

This problem require us to calculate the expected return on entire portfolio. The expected return on every stock that will be the part of portfolio is given in the question and their weightage in portfolio is also provided in the problem.

We can easily calculate the expected return using following weightage average formula.

ER portfolio' = WA * ERA + WB * ERB + WC* ERC

<em>' WA = Weightage of stock in portfolio</em>

<em>ERA = Expected return on stock A</em>

                 = 20% * 3.7 + 30% * 14.5 + 50* 18.2

                 = 14.19%

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Discuss how dollar-cost-averaging and the ten percent solution could make someone wealthy
labwork [276]
Dollar cost averaging is an investment technique which can make a person wealthy in the long run. In this technique, you will buy a particular stock constantly and regularly, regardless of the price. This will add-up and without noticing, you have acquired more than you'd imagine. On the other hand, Ten Percent Solution, you invest 10% of your earnings in a long-term investment, and is done on a regular basis.   
6 0
3 years ago
A college professor wants to know if the university students in the Unites States will find the new textbook that he has authore
matrenka [14]

Answer:

b. judgment sampling.

Explanation:

In this scenario, where he believes that this group of students will be representative of the university student population in the United States, the professor is most likely using Judgment or Expert sampling which is normally used in circumstances where the pointed population involves very intelligent people like student of the University of United States here who cannot be determined by using any different type of probability or non-probability sampling method.

4 0
3 years ago
Which of these innovations would not qualify as a dominant design? a. The two wheeled diamond frame bicycle b. Direct online ins
Alecsey [184]

The best answer for this question would be:

d. The 5 string bass guitar

 

This innovation is not a dominant design because it has already been done, and that the attempt of this 5-string would result in a musical failure.

7 0
4 years ago
If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipme
VashaNatasha [74]

The two accounts that would be most at risk are: Sales and Accounts Receivable

Accrual method of accounting is an accounting method that reports on the company book  <em>revenue</em> and expenses as they occur in which assets are then adjusted when revenue and expenses are paid.

Assuming  a company or organization are to increased shipments which they are  having doubt about as to whether those shipment would either be returned or not paid for.

The company book would show increase in income and increase in account receivable as the company is yet to receive payment for the goods that were shipped.

In a situation were the goods that was returned are high which means that at the end of the fiscal year both sales and  account receivable account will be affected.

Inconclusion The two accounts that would be most at risk are: Sales and Accounts Receivable.

Learn more here:

brainly.com/question/17233434

4 0
2 years ago
Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate 8.8%, and the MPC is 0.80. Hint: (Use Okun's law to
stich3 [128]

Answer:

Loss of gdp = 7.6%

Eliminate gdp loss = 121.6

Explanation:

According to Okun's law , 12% loss of gdp.

Natural rate of unemployment=5%

Cyclical unemployment = Actual unemployment - Rate of Unemployment

Cyclical unemployment = 8.8% - 5%

Cyclical unemployment =3.8%

Loss of gdp = 3.8%(2)

Loss of gdp = 7.6%

Loss of gdp = (7.6%(8,000)

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Spending multiplier = 1/(1 - mpc)

Spending multiplier = 1/(1 - 0.8)

Spending multiplier = 1/ 0.2

Spending multiplie = 5

So,

Eliminate gdp loss = 608/5

Eliminate gdp loss = 121.6

5 0
4 years ago
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