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Fed [463]
2 years ago
5

Assume Brad has a choice between two deposit accounts. Account WH has an annual percentage rate of​ 7.35% with interest compound

ed continuously. Account MW has an annual percentage rate of​ 7.45% with interest compounded monthly. Which account provides the highest effective annual​ return?
Business
1 answer:
inessss [21]2 years ago
8 0

Answer: Account MW which compounds monthly provides a higher effective rate at 7.71%

Explanation:

Use the Effective Interest rate formula to see which offers the higher return.

Account WH;

Compounded continuously;

= e^(interest rate) - 1

= e^7.35% - 1

= 7.63%

Account MW

Compounded per month

= (( 1 + interest / compounding period) ^ period) - 1

=  (( 1 + 7.45%/12) ^ 12) -1

= 7.71%

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Deffense [45]

Answer:

33.33%

Explanation:

Let weight of T-bill be x, therefore weight of stock will be 1-x

Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills

1 = (1-x)*1.5 + x*0

1 = 1.5 - 1.5x

x = 0.5/1.5

x = 0.3333

x = 33.33%

Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.

5 0
3 years ago
I got 100k for the balance of the investment when I did the math so how is it 98k?
ioda

Answer:

because you spend 1k or more

6 0
2 years ago
Factors affecting communication in a an organization
iVinArrow [24]

FACTORS AFFECTING COMMUNICATION

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3 0
3 years ago
Geno's Body Shop had sales revenues and operating costs in 2020 of $740,000 and $570,000, respectively. In 2021, Geno plans to e
Nataliya [291]

Answer:

$214,000

Explanation:

Total Revenues ($740,000 + $103,000) =$843,000

−Total Operating costs ($570,000 + $59,000)

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Therefore Assuming that there are no changes to the existing body shop business, operating profits would be expected to increase during 2021 by $214,000

7 0
3 years ago
Read 2 more answers
lpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at t
kirza4 [7]

Answer:

13.86%

Explanation:

Calculation to determine the flotation-adjusted (net) cost of its new common stock

Using this formula

Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g

Let plug in the formula

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Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%

5 0
2 years ago
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