1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga55 [171]
3 years ago
15

You have $14,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with

an expected return of 8 percent. Assume your goal is to create a portfolio with an expected return of 11.35 percent. How much money will you invest in Stock X and Stock Y? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
larisa86 [58]3 years ago
4 0

Answer:

Investment in stock x = $7816.67

Investment in stock y = $6183.33

Explanation:

The computation of invest in Stock X and Stock Y is shown below:-

Let the weight be x

x × 14% + (1 - x) ×8%

= 11.35%

0.14x + 0.08 - 0.08x

= 0.1135

0.14x - 0.08x

= 0.1135 - 0.08

0.06x = 0.335

x = 0.335 ÷ 0.06

x = 55.83%

Investment in stock x = x × Stock portfolio

= 55.83% × $14,000

= $7816.67

Investment in stock y = 1 - 0.5583 × $14,000

= $6183.33

You might be interested in
(1) Real-Balances Effect
ozzi

Answer:

(A) 5 and 10.

Explanation:

Factor which can shift the Investment spending:

(5) Profit Expectations

              If the firm forecast a good economy will probably invest more than if it forecast a bad economy. businessman will increase and decrease their investment based on expepectations.

(10) Degree of Excess Capacity

              Assuming a rational behavior, company's will investment if needed. So if there is a portion of unsued capital they will use it before investing to acquire more. Once the current capital is used or near max capacity they will invest. Below a certain threshold they won't.

4 0
3 years ago
San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contributi
Sliva [168]

Answer:

If closed the operating income  will decrease by 50,000

Is a better scenario to continue with the residential sercives

Explanation:

<em><u>current scenario:</u></em>

contribution margin 450,000

Fixed Cost 480,000

net loss 30,000

<em><u>drop scenario:</u></em>

contribution margin = 0

fixed cost 450,000-370,000 = 80,000

net loss (80,000)

8 0
3 years ago
Economic growth in the country of Southville has slowed down in the last few months. Following a collapse in housing​ prices, se
skad [1K]

Complete Question:

A. According to census data, the percentage of Southville's population that lives in rural areas has gradually been shrinking.

B. The standards for obtaining a mortgage loan in Southville have been more stringent compared to many other countries.

C. Prior to the crisis, the prices of existing homes also increased in proportion to the prices of new homes in Southville.

D. A large proportion of home buyers in Southville were individuals who already owned one or more houses.

E. The inflation-adjusted real wage in the construction industry increased by 10 percent prior to the crisis.

Answer and Explanation:

Options A and D would weaken Bob's argument. The reason why option A would weaken Bob's argument would be because Bob said that the population is increasing whereas the according to the census data, the population has gradually been shrinking.

The reason for option D is that the individuals who already owned houses were buying new houses. So what was the need for them to buy additional new houses?

4 0
2 years ago
Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upwa
solniwko [45]

Answer:

Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $62 per unit.

6 0
2 years ago
C&amp;A sells T-shirts for $20 that cost $5 to produce. The annual holding cost percentage is 10% and the T-shirts turn 25 times
Angelina_Jolie [31]

Answer:

B. $0.02

Explanation:

The computation is shown below:

Since the annual holding cost percentage is 10% and the cost of production is $5. So, the holding cost would be

= $5 × 10%

= 0.5

Now if the t-shirts run 25 times a year, so the holding cost would be

= 0.5 ÷ 25 times

= $0.02

Simply we compute the holding cost based on number of times the t-shirt turns in a year

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
Other questions:
  • During the recent economic crisis, many financial managers and corporate officers have been criticized for (a) poor decisions, (
    5·1 answer
  • Over the last four years, a stock has had an arithmetic average return of 8.8 percent. Three of those four years produced return
    9·1 answer
  • Which of the following statements is CORRECT? a. Well-designed bond covenants are useful for reducing potential conflicts betwee
    10·1 answer
  • If the price of good X increases by 2%, and that causes the quantity demanded of good Y to increase by 10%, then the cross-price
    15·1 answer
  • A student who works at a record store and plays in a rock band thinks for a minute about his own music-purchasing habits, and th
    6·1 answer
  • Meredith wants to start her own small business. All of the following are things she needs to do to start a business EXCEPT:
    12·1 answer
  • You have a checking account balance of $100 and you deposit a pesonal check for $200 from your brother in your checking account.
    10·1 answer
  • Pleeeaaaaassseeee help
    11·1 answer
  • Why does the US import so much from china?
    12·2 answers
  • It is likely that you won’t like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you wi
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!