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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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In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and red
Tems11 [23]

Answer:

(B) $20 billion

Explanation:

Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.

ΔAD = \frac{ΔG}{1 - MPC}

where Δ means <em>change.</em>

<em />

Therefore, given ΔAD of $50 billion, and MPC of 0.6,

ΔAD = \frac{ΔG}{1 - MPC}

= 50 = \frac{ΔG}{1 - 0.6}

= 50 = \frac{ΔG}{0.4}

= ΔG = 50 * 0.4 = 20

Therefore, increase in government purchases = $20 billion.

3 0
3 years ago
In which systems development life cycle do model developers use a model to generate functional requirements and physical design
Sergio [31]

The systems development life cycle in which model developers use a model to generate functional requirements and physical design specifications simultaneously is:

  • Prototyping life cycle

<h3>What is a Model?</h3>

This is a prototype which is used to represent a real thing to show the real life scenarios and applications on a much smaller scale.

With this in mind, we can see that in the prototyping life cycle, the model developers make functional requirements simultaneously to find out how the physical design specifications would look like.

Read more about life cycle here:
brainly.com/question/25754149

6 0
2 years ago
What is the usual term for spending on infrastructure, production facilities, or anything else that will increase future product
ololo11 [35]

Capital Investment. Capital investment includes spending money on equipment, factories, etc that will help the business be productive in the future.

7 0
3 years ago
Which organization does not provide free or loss cost training and counseling associated with the Small Business Association
xeze [42]

The organization that does not provide free or loss cost training and counseling associated with the Small Business Association is IBRD.

<h3>What is Small Business Association?</h3>

A Small Business Association are agencies that provides resources (like capital, skill, advice) to small businesses for innovation, growth etc

SCORE, VBOC and WBC are all agencies that provide free mentoring services, free training, loss-cost training, counseling etc

Hence, the organization that does not provide free or loss cost training and counseling associated with the Small Business Association is IBRD

Therefore, the Option A is correct.

Read more about Small Business Association

<em>brainly.com/question/2072884</em>

6 0
3 years ago
Health Care Event Protection
Genrish500 [490]

Answer:

$ 132,500

$4,250

$9000

Explanation:

From the given information:

Christina Haley of San Marcos who's aged 57 years recently suffered from stroke.

She was in intensive care for 3 days and was hospitalized for 10 more days

Total bill = $135,500

After Discharge;

she spent 25 days in a nursing home at a cost of $170 per day

Amount earned by Christiana per month at her work = $4500

She missed 2 months of going to work.

Christina had a health insurance plan through her employer.

The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap

1. How much of Christina’s direct medical expenses was paid by her insurance policy?

The amount the insurance policy paid  can be known by the expression:

= Total bill amount for the care - deduction for policy - coinsurance cap

= $135,000 - $1000 - $2,000

= $ 132,500

2. What did Christina have to pay for her nursing home care?

We are being told that She spent 25 days in a nursing home at a cost of $170 per day

Thus; the amount  Christina have to pay for her nursing home care = 25 × $ 170

= $4,250

3. How much income did Christina lose?

We knew she missed two months from work and she collect $4500 per month.

Thus the amount of income she lose =  $4500 × 2

the amount of income she lose = $9000

5 0
3 years ago
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