All categories

3 years ago

Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security

Business

1 answer:

MrMuchimi3 years ago

7 0

Answer:

b. security C

Explanation:

Risk averse investors are investors that are not risk takers or are risk averse and so from the above, such investors will go for a less variable portfolio which has less risk. The security with the least risk from the options is option B. This is the security that the risk averse investor will choose to add to the portfolio with the risk free t bill

You might be interested in

If the probability is 0.54 that Stock A will increase in value during the next month and the probability is 0.68 that Stock B wi

Natali5045456 [20]

Answer:

The probability that neither of both stocks increase is 0,14

Explanation:

The Complement Rule states that the sum of the probabilities of an event and its complement must equal 1.

The data we have is the probability that Stock A or B increase, we are looking for the probability that neither occur, so we have to use the complement of each one.

Complement of Stock A =1-0.54=0.46

Complement of Stock B =1-0.68=0.32

If we want to know the probability of both events happening we have to multiply both complements.

Probability that neither of these two events will occur= 0.46 x0.32= 0,1472‬

7 0

3 years ago

kendra always buys and uses wilson brand tennis balls. if she finds a penn or dunlop ball on the court, she gives it away. brand

Dmitry [639]

Considering the situation above, by building a strong brand, Wilson has effectively "<u>reduced the price elasticity of demand for its products</u>."

This is because the price elasticity of demand is a term in economics that defines the sensitivity of the quantity demanded of a commodity to its price.

Usually, the price elasticity of demand shows that when the price of a commodity increase, the quantity demanded decreases.

Thus, in this case, since it is said that Kendra allowed Wilson to charge a higher price and not lose many sales, therefore, Wilson has been able to reduce the price elasticity of demand for its products.

Learn more here: brainly.com/question/15654343

4 0

3 years ago

According to Fiedler’s contingency theory of leadership, leader behaviors are__________( easy , Hard) to change, and ___________

spin [16.1K]

Answer:

According to Fiedler’s contingency theory of leadership, leader behaviors are easy to change, and people oriented leaders perform best in intermediately favorable situations.

Explanation:

The leadership style is easy to change, so if the company had a very strict leader in terms of rules, with this new leader the strategy of listening to employees should be used, since they still have respect for superiors , so the strategy that this new manager should have must be to fix all the deficiencies that the previous manager had and organize the establishment.

8 0

4 years ago

Techgear, Inc., manufactures specialty suits for triathletes. For the month of January, it projects the following selling and ad

Inessa [10]

Answer:

C : $50,050

Explanation:

Budgeted sales: $400,000

Budgeted Comission expense: $16,000

Budgeted shipping expenses: $4,500

Budgeted marketing costs: $12,000

Budgeted utility bills: $750

Budgeted depreciation expense: $8,800

Budgeted bad expense: $8,000

The sum of all those expenses is $50,050.

The totality of the expeneses listed in the question are part of the budgeted income statement, except for the budgeted revenue, because it is obviously not a expense.

8 0

3 years ago

On January 1, 2018,MechanicsCredit Union (MCU)issued 8 %,20-yearbonds payable with face value of $ 200 comma 000.These bon

DENIUS [597]

Answer:

A. Issuance of the bonds on January 1, 2018.

Dr Cash 212,000

Cr Bonds payable 200,000

Cr Premium on bonds payable 12,000

B. Payment of interest and amortization on June 30, 2018.

premium on bonds payable = $12,000 / 40 coupons = $300 per coupon

Dr Interest expense 7,700

Dr Premium on bonds payable 300

Cr Cash 8,000

C. Payment of interest and amortization on December 31, 2018.

Dr Interest expense 7,700

Dr Premium on bonds payable 300

Cr Cash 8,000

D. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.

Dr Bonds payable 200,000

Cr cash 200,000

6 0

3 years ago