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amid [387]
3 years ago
7

In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe

r securities with an expected return of and a volatility of . ​Currently, the​ risk-free rate of interest is . Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of ​, a volatility of ​, and a correlation of with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is nothing​%. ​ (Round to two decimal​ places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your​ portfolio?
Business
1 answer:
Murrr4er [49]3 years ago
7 0

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

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Ju Li believes that her sales force should sell in a conventional sense by identifying prospective clients, such as the Coffee C
Lady_Fox [76]

Answer:

C. order getter

Explanation:

Based on the information provided within the question it can be said that this type of salesperson is referred to as an order getter. This is the person focuses on identifying potential customers, giving them information about a product/service, and persuades them into buying what he/she is offering in order to close a sale and gain a loyal customer. Which is exactly what Ju Li believes in doing.

7 0
3 years ago
U.s. gdp excludes the production of most illegal goods.<br> a. true<br> b. false
Serggg [28]
I think the answer is true because it is the total value of produced and services  provide in a given year


3 0
3 years ago
Decision-Making Scenarios Scenario 1 Football season starts this weekend and Steve is excited about his school’s first game. He
pickupchik [31]

Explanation:

Being a son, Steve should obey his parents and stay at home to babysit his six year old brother, because it is always the duty of children to give respect to their parents' decisions. Though he was super excited about the football match in which his school team was going to play against the long term rivals, but because his parents' friends had a call for meeting them after so long, they asked him to stay at home as he could have many more chances of seeing such matches.

But being a parent, I should respect my son's program of watching the football match, and take the baby with me, so that the program of both son and parents would not be disturbed.

7 0
3 years ago
Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises and consum
OverLord2011 [107]
The scenario you described suggests that the Law of Demand is correct.

Increase in price will always lead to loss of demand, while replacements for that product will grow in demand.
4 0
3 years ago
Following is the information about Eclypso Company's two products: Product X Product Y Unit selling price $10.00 $10.00 Unit var
xz_007 [3.2K]

Answer:

50,000  units are required to break even

Explanation:

Eclypso Company

                                        Product X        Product Y

Unit selling price               $10.00               $10.00

Less

Unit variable costs:

Manufacturing                     $ 6.00            $ 7.00

Selling                                   1.00                 1.00

Total variable costs              $ 7.00            $ 8.00

Contribution Margin per unit  3                   2          

Monthly fixed costs are as follows:

Manufacturing                               $ 90,000

Selling and administrative             50,000

Total fixed costs                           $140,000

Weighted Contribution Margin per unit =  ($3 *  80% + $ 2 * 20%)= 2.4+ 0.4=              

                                                                                $ 2.8

Combined Break Even Volume = Fixed Costs/ Weighted Contribution Margin Per unit

Combined Break Even Volume = $ 140,000/ 2.8=50,000

5 0
3 years ago
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