Answer:
A) 964,286
B) 14
C) 750,000
Explanation:
The portfolios expected return = (0.5 x $70,000) + (0.5 x $200,000) = $35,000 + $100,000 = $135,000
If the risk free investment yields 6% per year, and you require a risk premium of 8%, then the total interest rate that the portfolio yields must be 6% + 8% = 14%
you will be willing to pay: $135,000 / 14% = $964,286 for the portfolio
if the risk premium increase by 4%, then the price of the portfolio will decrease to: $135,000 / 18% = $750,000
Answer:
Explanation:
It is given that there is a liability to creditors of 6,500
Total assets = Total liability + Shareholder's equity
a) Shareholder's equity = Total assets - Total liability = 10,250 - 6,500 = 3,750
b) Shareholder's equity = Total assets - Total liability = 5,900 - 6,500 = -600
Answer:
I don't know I'm sorry
Explanation:
I just want points pls forgive me
Https://quizlet.com/129490981/chapter-7-practice-flash-cards/
Answer:
confused
Explanation:
The goods whose demand decreases in the market when the consumer income rises are known as inferior goods.
The goods whose demand increases in the market when the consumer income rises are known as normal goods.
Thus, the reasoning of the student is confused as the classification of the goods on the basics of normal or inferior depends on response of the demand when there is a change in consumer's income. Thus, the student's own perception about such classification is confused.
