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Otrada [13]
3 years ago
6

A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent

and 12.50 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
bonufazy [111]3 years ago
8 0

Answer:

Portfolio return = 11.08%

Explanation:

<em>The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.</em>

The expected return can be determined as follows

Weighted of stock A= 15,200/(15200+23400)=0.39

Weight of stock B = 23.400/((15200+23400)=   0.61  

Expected return on portfolio = (0.39 ×8.90% )  + (0.61*12.50%)= 11.08 %

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The number one reason risk pooling is valuable to the insurance industry is... A. It allows companies to charge the same premium
kolbaska11 [484]

The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.

Option B is the correct answer.

<h3>Who is a policyholder?</h3>

The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.

The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.

Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.

Learn more about the insurance in the related link;

brainly.com/question/14969988

#SPJ1

7 0
2 years ago
This document is published by the Office of Inspector General (OIG) every year. It details the OIG's focus for Medicare fraud an
olga nikolaevna [1]

Answer:

<em>The OIG's Workplan</em>

Explanation:

Work planning process for the Office of Inspector General (OIG) has always been vibrant and improvements have been created during the year to satisfy objectives, and with the available resources to anticipate and respond to emerging issues.

<em>The OIG Work Plan establishes various projects, such as OIG audits and evaluations which are yet to be established or arranged to be tackled by OIG's Audit Services Office and Evaluation and Inspections Office during the fiscal year and beyond.</em>

3 0
3 years ago
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annual
algol [13]

Answer:

$1,008.18

Explanation:

Using a financial calculator, you can calculate the price of this bond with the following inputs;

Maturity of the bond; N= 3

Face value ; FV = 1000

Annual coupon payment; PMT = 7% *1000 = 70

Yield to maturity ; I/Y = 6.69%

then compute the Price;  CPT PV = 1,008.182

Therefore, the current price is $1,008.18

6 0
3 years ago
"Your customer, age 68, who has an IRA account at your firm valued at $500,000, passes away. The customer leaves the account to
vredina [299]

Answer:

My best advice for the spouse would be to designate herself as the new account owner, and since she is 62, she can start taking regular distributions from it. Any distributions that she takes will be taxed as ordinary income (the same rule would have applied to the late husband).

Explanation:

If she had her own IRA account (which is doubtful since she doesn't work), she could also roll over her late spouse's balance into her own account.

The wife's third option would be to treat herself as a beneficiary, not the owner or spouse, but that would only complicate things and result in higher costs.

5 0
3 years ago
A stadium sold 4000 tickets at 75$/ticket, 5350 tickets at 62$/ticket and, 7542 tickets at 49$/ticket. What was the total ticket
bixtya [17]

Answer:

4000x70=280000

5350x62=331700

7542x49=369558

add that all up to get $981258

Hope this helps!

6 0
3 years ago
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