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True [87]
4 years ago
10

Hillary can invest her family savings in two assets: riskless treasury bills or a risky vacation home real estate project on an

Arkansas river. The expected return on treasury bills is 4 percent with a standard deviation of zero. The expected return on the real estate project is 30 percent with a standard deviation of 40 percent.
5) Refer to Scenario 5.10. If Hillary invests 30 percent of her savings in the real estate project and the remainder in treasury bills, the expected return on her portfolio is:
A) 4 percent.
B) 11.8 percent.
C) 17 percent.
D) 22.2 percent.
E) 30 percent.
Business
1 answer:
galina1969 [7]4 years ago
7 0

Answer:

The expected return on her portfolio is B) 11.8%

Explanation:

Hi, the expected return of a portfolio can be found by multiplying the weight of each of the assets times each of its expected return, that is:

E(portfolio)=E(Tbills)*Weight(Tbills)+E(other)*Weight(other)

So everything should look like this

E(portfolio)=0.04*0.70+0.3*0.3=0.118

The expected return of the portfolio is 11.8%, that is option B)

Best of luck.

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Answer:

be indifferent between the two meals

Explanation:

Marginal utility is the additional satisfaction received from consuming an additional unit of a good or service. Marginal utility is the additional utility derived from consuming one more unit of a good. the consumption decision is to consume more units of a good that gives the higher utility per good.

Marginal utility per good = marginal utility / price of the good

Whopper combo meal = 15 / 3 = 5

a meal at the Embassy Suites = 145 / 29 = 5

both meals have the same marginal utility of 5. She would be indifferent between consuming the two meals

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Income Share Agreements

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You're trying to choose between two different investment, both of which have up – front costs of $45,000. investment g returns $
DochEvi [55]
Amount invested in both schemes is $45,000
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4 0
3 years ago
By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previou
Aloiza [94]

Answer:

c. $10,000.

Explanation:

Gross domestic product is the sum total of all goods produced in a country in a given period. Sale of used good are not considered in GDP because the original value of the used item would have been recorded previously as GDP when it was first produced.

Therefore in this scenario the money paid for the house ($250,000) is not considered to be part of GDP since the original value of $90,000 would have been recorded as GDP 10 years ago.

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3 years ago
A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,
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Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.

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A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

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