Answer: True
Explanation:
There exists a problem known as the Agency Problem between managers and the shareholders of a company. The manager is the agent and the shareholders are the owners. Sometimes, it has been shown that the agent might act in their best interests as opposed to be best interests of the owners of the business.
To solve this, the manager should be made an owner as well and one way to do so is to give them stock options. This way, they will be motivated to work hard for the owners because they will benefit as well.
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
Keep their employees safe and post safety rules
Answer:
Jenna's net tax payment is $ 633.6
Explanation:
because;
$9 * 20 hour * 1 week = $180 h/w
$180 h/w * 4 week/ 1month = $720 h/m
$9 * 8 hours * 1 sunday = $72 h/s
$720 + $72 = $792 - 20% taxes = $633.6
$633.6 is jenna's basic salary
monthly expenses of $83.33
$633.6 - 83.33 = 550.27.
Monthly savings for the trip to Mexico is $125
Selective optimization with compensation theory states that successful aging is related to three main factors: selection, optimization, and compensation.
<h3>What is selective optimization with compensation theory?</h3>
Selective Optimization With Compensation theory is a theory that refers to a person's lifespan model of psychological and behavioral management.
The lifespan model explains how individuals adapt to changes related to their human development and age-related gains and losses.
Thus, selective optimization with compensation theory states that successful aging is related to three main factors: selection, optimization, and compensation.
Learn more about the three main factors of Selective Optimization with Compensation Theory at brainly.com/question/7227453
