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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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A study finds that at a price of $10, 100 t-shirts are sold. at a price of $5, 300 t-shirts are sold. how many t-shirts can you
Trava [24]

The number of t-shirts that one can assume are sold at a price of $7 will be 220

<h3>What is price?</h3>

It should be noted that price is the sum of money that one party pays or receives in exchange for another's goods or services. The cost of production may go by another name in some circumstances. If a product is classified as a "good" in a business transaction, its price is most likely to be referred to as such.

In this case, it should be noted that the higher the price of a particular good, there'll be a reduction in the quantity that will be demanded.

Therefore, the most likely value will be $220. In conclusion, the correct option is A.

Learn more about price on:

brainly.com/question/1153322

#SPJ1

A study finds that at a price of $10, 100 t-shirts are sold. At a price of $5, 300 t-shirts are sold. How many t-shirts can you assume are sold at $7?

A. 220

B. 200

C. 180

D. 160

3 0
1 year ago
Describe the gas station and its immediate surroundings.
vladimir1956 [14]
The very first thing that should be considered when it comes to the location of the gasoline station is its accessibility to the consumers. As a general guideline, it should be located approximately 500 ft from any public institution including churches, malls, schools, etc. 
3 0
3 years ago
Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10
Elina [12.6K]

Answer:

<em>The expected rates of return of stocks A and B:</em>

E(RA) = 0.1*((13%) + 0.2*(12%) + 0.3*(14%) + 0.2*(15%)

E(RA) = 13.2%

E(RB) = 0.1*(8%) + 0.2*(7%) + 0.2*(6%) + 0.3*(9%) + 0.2*(8%)

E(RB) = 7.7%

<em>The standard deviation of stocks A and B are:</em>

Var(RA) = [0.1*(10%-13.2%)2^ + 0.2*(13%-13.2%)^2 + 0.2*(12%-13.2%)^2 + 0.3*(14%-13.2%)^2 + 0.2*(15%-13.2%)^2]^1/2

Var(RA) = 1.5%

Var(RB) = [0.1*(8%-7.7%)^2 + 0.2*(7%-7.7%)^2 + 0.2*(6%-7.7%)^2 + 0.3(9%-7.7%)^2 + 0.2*(8%-7.7%)^2]^1/2

Var(RB) = 1.1%

5 0
2 years ago
Suppose the reserve requirement is 20 percent and banks hold no excess reserves. A $1 billion purchase of government securities
Alex777 [14]

Answer:

increase the money supply by $5 billion

Explanation:

When the Fed carries on an expansionary monetary policy it lowers interest rates and purchases government securities in order to increase the money supply in an attempt to boost economic growth.

The increase in the money supply is determined by the total amount of the open market operations carried out by the Fed ($1 billion) and the money multiplier (= 1/reserve ratio = 1/20% = 5).

Total increase in money supply = $1 billion x 5 = $5 billion

5 0
3 years ago
Mrs. Adams owned an income property with an adjusted cost basis of $160,000 and a fair market value of $240,000. She exchanged t
ella [17]

Answer:

$160,000

Explanation:

Based on the information given For FEDERAL INCOME TAX PURPOSES, the NEW PROPERTY will have a BASIS for Mrs. Johnson of:$160,000

reason been that Adams owned an income property with an ADJUSTED COST BASIS of the amount of $160,000 and secondly the COST BASIS of the property that was traded will be the COST BASIS for the property that was acquired assuming NO ANY adjustment was made for differences in value.

5 0
2 years ago
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