1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
One of the most widely followed stock indexes in the united states is the dow jones industrial average. this index represents
OleMash [197]
<span>Dow Jones Industrial Average (DJIA) is the widely followed and best known stock index because it is composed of companies that are under the industrial and consumer industry. The price of the stock under the Dow Jones Industrial Average is divided by divisors which are used in this index.</span>
5 0
2 years ago
PLEASE HELP!
ycow [4]

Answer:

Identify with Your Goals, Build a Professional Resume, Become Aware of Your Strengths, Assume Full Responsibility for Your Life, Always Raise Your Standards, Brand Yourself, and Network

Explanation:

6 0
2 years ago
A description of the future one envisions for a business, including what one plans to do and how one plans to do it, is called _
Arturiano [62]

Answer:

planning ( b )

Explanation:

planning for a business involves all the components of a business idea and how to carryout such business idea in the open market in other to be successful and profitable.

hence the description of the future one envisions for a business and what one plans  to do and how to do them is embodied in the planning stage of the business. while the Brainstorming session/stage of the business cycle deals with finding solutions to already existing challenges. also surveying is used to measure what kind of business one should be involved with.

4 0
3 years ago
Companies with global structures
Ne4ueva [31]

Answer: Option B

Explanation: In simple words, global structure refers to the structure in which the operations of an entity are managed on the basis of geographic areas rather on the basis of product.

The companies having global structures operate their business on many different countries and the scale of their operations are usually huge. Therefore, they profit from the economies of scale and enjoy lower production cost than others.

Hence the correct option is B.

6 0
3 years ago
Which accounting concept is used in each of the following accounting treatment?
Roman55 [17]

The accounting concepts that provide guidance for recording the following business events are as follows.  The business transactions are numbered from (a) to (e) below:

1) Materiality Concept is applied because the impact of the cost of the tape dispenser being "expensed" is not significant on the reader of the financial statement.

2) Entity Concept requires separation between the finances of the owner from the finances of the business.  The business is a separate economic unit distinct from the sole proprietor.

3) Prudence Concept demands that expenses (like the bad debt written off) and liabilities are not underestimated and revenues and assets should not be overestimated.

4) Historical Cost Concept: Generally accepted accounting principles require the initial recognition of an asset at its purchase cost and not fair value.

5) Accrual Concept and Matching Principle: The accrual concept requires that expenses that have been incurred for a period should be accounted for in that period, whether cash payment is made or not.  The matching principle states that expenses (Van Repair Expense) should be matched to the revenue that they generate.

Thus, accounting concepts are the basic assumptions, rule, and principles for recording business transactions and events and preparing accounts and financial statements.

Learn more about accounting concepts at brainly.com/question/24425761

6 0
2 years ago
Other questions:
  • Wikipedia's engagement of readers and the public in developing content, with an emphasis on timeliness and the breadth of conten
    9·1 answer
  • How did the organized medical profession manage to remain free of control by business firms, insurance companies, and hospitals
    12·1 answer
  • Peggy-Sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work
    11·2 answers
  • Although True Ion Inc. and One Electro Inc. operate in the same consumer electronic industry, True Ion Inc. has better sales and
    7·1 answer
  • Why is there an inherent conflict between planning and control uses of budgets?
    7·1 answer
  • The employees of Beverage Bottling Company designate Cola Cappers Union as their bargaining representative. Beverage refuses to
    10·1 answer
  • ​Bryant, Inc. provides the following​ data:2017 2016Cash $47,000 $25,000Accounts Receivable, Net 100,000 62,000Merchandise Inven
    13·1 answer
  • Manero Company included the following information in its annual report: 20X3 20X2 20X1 Sales$178,400 $162,500 $155,500 Cost of g
    6·1 answer
  • The question are on the picture...can someone help me ?​
    8·1 answer
  • How to come up with a good idea that you are going to start a business?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!