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kirill115 [55]
3 years ago
15

Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella Company. She estimates there

is a 75% chance it will remain sunny and Sunglasses Co. stock will rise 50% and Umbrella Co. stock will stay flat. She also estimates there is a 25% chance it will rain and Sunglasses Co. stock will remain flat and Umbrella Co. stock will rise by 25%. If she diversifies her investment by putting 50% of her money in each company, what is the expected return and standard deviation of her portfolio

Business
2 answers:
WARRIOR [948]3 years ago
7 0

Answer: 21.88%

Explanation: see attachment below

zubka84 [21]3 years ago
5 0

Answer:

Explanation:

Attachment below

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What is the average production cycle?
Tcecarenko [31]

Answer: Total amount of goods produced/Time of Production = Cycle time.

Explanation: production cycle is generally understood as the period of time during which a company produces a finished product from its stocks, then the reduction of this period of time, especially in comparison with competitors, is an important indicator to determine economic efficiency.

7 0
2 years ago
A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%
givi [52]

Answer:

3.4%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

9.7 = 5.2 + 1.34(x - 5.2)

9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

4 0
3 years ago
Question 1 (2 points)
inn [45]

Answer:

True

Explanation:

The principal purpose of building a business is to make profits.  A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.

Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.

8 0
3 years ago
One bank offers a 2% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. It is likely bette
vodomira [7]

Answer:

The problem with variable rates is that they vary, i.e., they might unexpectedly increase and the increase might be pretty significant. One of the main factors leading to the Great Recession was the housing bubble and the increase in mortgage interest rates. Normally, interest rates tend to increase, they might sometimes decrease, but generally they only go up and up.

Even though the fixed interest rate might be higher, it will not change and that  guarantees that you will always pay the same amount and that you can prepare your personal budget to cover it.

5 0
3 years ago
A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000;
Tema [17]

Answer:

The projected Net Income is $70,784

Explanation:

The Pro- forma income Statement

Working Note:

Variable cost = Sales × 44%

= $585,000 × 44%

= $257,400

EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation

= $585,000 - $257,400 - $187,000 - $51,000

= $89,600

Net Income = EBT × Tax rate

= $89,600 × 21%

= $70,784

8 0
3 years ago
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