Answer:
The expected annual return of Portfolio is 12.00%
Explanation:
The portfolio return is calculated by multiplying the individual security return with weight of individual security in the portfolio. We have three securities R, J and K with expected return on 12%, 18% and 8% with weight of 50%, 20% and 30%. Through multiplying them we get individual return of security that is 6%, 3.6% and 2.4%. The weighted average portfolio return is 12%
Answer:
I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:
In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.
When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports
Another important assumptions are:
- marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1
- consumption = autonomous consumption + [MPC x (total income level - taxes)]
Savings = investment increase when disposable income increases or real GDP increases.
This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.
Answer:
Accountant 34,100 gain
Economist (6,500) loss
Explanation:
<u></u>
<u>Accountant:</u>
revenue 60,000
operating cost 25,000
Interest expense 900 ( 30,000 x 3%)
net income 34,100
<u>Economist: </u>
revenue 60,000
explicit cost 25,900
<em>implicit cost (opportunity cost):</em>
savings yield:
20,000 x 3% = 600
painter job 40,000
economic loss (6,500)
Answer:
lease a new car.
Explanation:
Raul is better off leasing a new car due to the following reasons.
- Raul likes to change things now and then. With a lease, he can change the make and model of cars and often as he pleases.
- Raul does not have much money to repair and maintain his car. The best option is to lease a new car. A new car requires minimal maintenance. The cost of maintenance is not entirely up to Raul.
