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Kobotan [32]
3 years ago
8

Suppose you had $1000 to invest on September 30, 2016 and you had the option of choosing either AAPL or RRD or a combination of

the two (example: 5% in AAPL and 95% in RRD; or 80% in AAPL and 20% in RRD; i.e. in general x% in AAPL and y% in RRD where x%+y%=100%). How would you invest the $1000? Why?
Business
1 answer:
beks73 [17]3 years ago
5 0

Answer:

I would invest the whole $1000 in AAPL,because y% gives zero return while x% gives $250 in return.

Explanation:

First and foremost we need to formulate equations based on the return percentages given:

when x%=5%

y=95%

0.05x+0.95y=$1000 eqn 1

when x%=80%

y=20%

0.8X+0.2y=$1000 eqn 2

multiply eqn 1 by 16 gives

0.8x+15.2y=$1000

0.8x+0.2y=$1000

deduct both equations

15y=0

y=0/15

y=0

substitute the value of y in eqn 2

0.8x+0.2y=$1000

0.8x+0.2(0)=1000

0.8x=1000

x=1000/8

x=$1250(interest plus principal)

interest =$250

principal=$1000

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8 0
2 years ago
Jennifer's income is too high to qualify for the credit on Form 8880, Credit for Qualified Retirement Savings Contributions.A. T
a_sh-v [17]

Answer:

given statement is true

Explanation:

solution

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3 0
3 years ago
MC Qu. 6 Physical goods can be differentiated ... Physical goods can be differentiated from services in the operations managemen
swat32

Answer:

The answer is: Longer lead times and they can be inventoried.

Explanation:

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3 years ago
An investor from United Arab Emirates wants to establish a University of Science and Technology in Uganda.
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3 years ago
The start up costs for a project are $25,000. The cost of capital for the firm is 12%. The sum of the present value of the cash
Kobotan [32]

Answer:

net present value = $1,420.14

Explanation:

given data

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