When revising a budget, it is important to make choices that allow you to continue<br> money.

You currently own shares in Buckeye Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization

GarryVolchara [31]

Answer:

Option D is the correct option

Explanation:

To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,

Coefficient of variation(CoV) = Standard Deviation/Expected Return

CoV of Buckeye = 14%/20% = 0.7

CoV of Wolverine = 11%/12% = 0.9167

So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.

Hence, Option A

- Required target return of portfolio = 22%

Risk Free return = 8%

Buckeye Return = 20%

Let the weight of Buckeye be X ,& weight of risk free be (1-X)

Required return = (WRF)*(RRF) + (WB)*(RB)

22 = (1-X)(8) + (X)(20)

22 = 8-8X + 20X

14 = 12X

X = 1.17

SO, weight of Buckeye is 1.17 or 117%

while weight of Risk free is -0.17 (1-1.17) or -17%

Hence, ans is OPTION D

7 0

3 years ago

Assume there are currently five firms producing and selling fertilizer in the South American market. Also assume that the produc

Jobisdone [24]

Answer:

It is given that in an oligopolistic market, there are at first five firms. At the point when the quantity of fums diminishes to three, it implies that the all out yield will likewise decrease. It is on the grounds that, all the makers are delivering separated items. The inventory of merchandise won't increment in light of the fact that the makers would have expanded the creation before, if that was conceivable. Hence, the balance amount will fall and in view of decrease in amount, cost will increase.

Thus, equilibrium price will likely <u>increase</u> and the equilibrium quantity will likely <u>decrease.</u>

3 0

4 years ago

Is buying a movie ticket considered a(n)

Snowcat [4.5K]

I would say C. Hope this helps!

6 0

4 years ago

Read 2 more answers

A ________ produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to poi

adoni [48]

Answer:

C.) Push System.

Explanation:

3 0

4 years ago

brussels enterprises issues bonds at par dated january 1, 2021, that have a $2,700,000 par value, mature in four years, and pay

Nadusha1986 [10]

The journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

<h3>Journal entry</h3>

1. January 1

Debit Cash $2,700,000

Credit Bonds payable $2,700,000

(To record issuance of bonds for cash)

2. June 30

Debit bond Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record first semiannual interest payment)

December 31

Debit bond Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record second semiannual interest payment)

3. December 31, 2021

Debit Bonds payable $2,700,000

Credit Cash $2,700,000

(To record payment of bonds payable)

Therefore the journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

Learn more about journal entries here:brainly.com/question/14279491

#SPJ1

6 0

1 year ago

When revising a budget, it is important to make choices that allow you to continue money.