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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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When the marginal revenue curve intersects the horizontal axis A. demand is relatively inelastic. B. demand is perfectly elastic
konstantin123 [22]

Answer:

D. demand is unitary elastic.

Explanation:

A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.

The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.

8 0
3 years ago
Blythe Industries reports the following account balances: inventory of $417,600, equipment of $2,028,300, accounts payable of $2
aleksley [76]

Answer:

$783,400

Explanation:

The total assets comprise of current assets, fixed assets ,and the intangible assets

The current assets include cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.  

So, the amount of the current assets is shown below:

= Inventory + cash + account receivable

= $417,600 + $51,900 + $313,900

= $783,400

The account payable is a current liabilities, Hence, we do not considered for the computation part

6 0
3 years ago
Suppose the Federal Reserve sets the reserve requirement at 20%, banks hold no excess reserves, and no additional currency is he
Drupady [299]

The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Given,

The Federal Reserve sets the reserve requirement at 20%.

Banks hold no excess reserves, and no additional currency is held.

  • The money multiplier displays the amplitude of the change in the money supply as a result of the addition of new reserves to the banking system.
  • Banks use the money they are not obligated to retain in reserve to make loans, and the borrowed money shows up on other customers' deposit accounts.
  • In macroeconomics, the money multiplier is significant because it controls the money supply, which influences interest rates.
  • Because it affects monetary policy and the stability of the banking industry, it is also significant in the banking industry.

The money multiplier formula can be used to calculate the total amount of new deposits or money created.

Money multiplier = 1/reserve ratio

                            = 1/0.20

                            = 5

change in Total money supply = Money multiplier × change in reserves

                                 = 5 × $400 million

                                 = $2,000 million

Hence, The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Learn more about Federal Reserve Bank:

brainly.com/question/999538

#SPJ1

4 0
2 years ago
Individual policies are generally stand-alone policies, but may be written with other types of policies as a(n): a. Endorsement
Romashka-Z-Leto [24]

Answer:

The correct answer is letter "B": Rider.

Explanation:

A rider policy adds or restricts terms to an already existing insurance policy. This is typically used when the policyholder includes in the original coverage some others such as life, home, and auto insurance. Rider policies are typically low priced and in most cases are offered by the same insurance companies at a special discount to promote consumption among their insured.

7 0
2 years ago
At a busy meeting of the international sprout growers, you want to make contact with as many people as possible. luckily, you re
pav-90 [236]
The correct option is B.
The eight minute rule is put in place to improve efficiency and productivity. In a busy meeting, where one is meeting a lot of new people that one will like to interact with, this rule demands that one should only spend only a few minute with each person.
6 0
3 years ago
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