People joined together in business

$

pashok25 [27]

Answer:

english pls

Explanation:

3 0

3 years ago

Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The requir

borishaifa [10]

Answer:

11.11%

Explanation:

The full question with table is attached.

We need the rate of return formula using Capital Asset Pricing Model (CAPM). The formula is:

$R=R_f+\beta(R_m-R_f)$

Where

R is rate of return (what we need)

$R_f$ is risk-free return rate (5% = 0.05)

$R_m$ is the market rate of return (11% = 0.11)

To get $\beta$ , we take the weighted average of the portfolio.

Weight of Stock A = 1,075,000/3,000,000 = 0.3583

Weight of Stock B = 675,000/3,000,000 = 0.225

Weight of Stock C = 750,000/3,000,000 = 0.25

Weight of Stock D = 500,000/3,000,000 = 0.1667

Portfolio Beta = (0.3583*1.2) + (0.225*0.50) + (0.25*1.40) + (0.1667*0.75) = 1.02

Now, we calculate rate of return using CAPM formula:

$R=R_f+\beta(R_m-R_f)\\R=0.05+1.02(0.11-0.05)\\R=0.1112$

That is 11.12%, or from answer choice, it is 11.11%

7 0

3 years ago

What term is used to describe a technical, physical, or administrative process designed to reduce risk?

kvv77 [185]

Answer:

Control

Explanation:

Control in management as well as organization is very essential, it is very crucial for organization to achieve their goals. Control helps in the area of taking corrective measures whenever the needs arrises. It involves using technical as well as physical method in regulation of activities within an organization which will later reduces risk. It should be noted that control is

used to describe a technical, physical, or administrative process designed to reduce risk.

6 0

3 years ago

Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $26.10 million cost

AlladinOne [14]

Answer:

Original Cost = $26.10

Annual Amortization (Old) = $26.10 / 9 years

Annual Amortization (Old) = $2.9 million

Amortization till Date (2017 - 2021) = $2.9*4 = $11.6 million

Unamortized Value = $26.10 million - $11.6 million

Unamortized Value = $14.5 million

Remaining Life = 6 - 4

Remaining Life = 2 Years

New Amortization = Unamortized Value/Remaining Life

New Amortization = $14.5/2

New Amortization = $7.25 million

Journal Entry

Amortization Expense Debit - $7.25 million

Patent Credit - $7.25 million

5 0

3 years ago

You believe you must withdraw $12,000 per month during retirement. You plan to be retired for 30 years. Assuming your money will

jek_recluse [69]

Answer:

$2,385,086

Explanation:

To answer this question, we need to use the present value of an ordinary annuity formula:

$PV = A ((1-(1+i)^{-n} )/i)$

Where:

A = Value of the annuity
i = interest rate
n = number of compounding periods

Because the interest rate is annual, it is convenient to convert it to a monthly rate.

4.5% annual rate = 0.37% monthly rate.

The number of compounding periods will be = 12 months x 30 years

= 360 months

Now, we simply plug the amounts into the formula:

$X = $12,000((1-(1 + 0.0037)^{-360} )/0.0037)$

$X = $2,385,086$

You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.

7 0

3 years ago