Answer:
The correlation of returns between Asset A and Asset B is closest to 0.685714
or 68.57%
Explanation:
The formula to find the correlation of an asset is
Correlation of AB = Co variance AB/Standard deviation A * Standard deviation B
Co variance AB =600
Standard deviation of A= (625)^0.5=25
Standard deviation of B = (1,225)^0.5=35
Put these values in the formula
600/(25*35)=0.685714
Answer:
Credit cards
Explanation:
Credit cards can allow for easy access to money. They can also be expensive if the balance is carried or they are overused.
Answer:
The correct answer is: the costs.
Explanation:
Debt financing is money borrowed to be repaid over a period of time usually as forms of credits or loans from financial institutions such as banks. The benefit of debt financing is that an organization could turn a small amount of money into a large sum. The drawback is that the money borrowed requires payment with interest regardless the organization had revenues or not.
Equity capital is the financing method of a company through stocks. The funds must not be repaid but the organization gives part to its ownership to the investors who profit from dividends.
<em>The cost of equity is higher than the cost of debt</em> because equity financing is a greater risk to the investor since stockholders eventually can take over the ownership of a firm, something that does not happen with debt financing.
Answer:
Our answer is 2430798.798
Explanation:
. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).
Therefore, 0.7 × 173628.4856 = 0.05×savings
==> savings = 2430798.798
Answer: $742,000,000
Explanation:
The balance of pension plan assets at fair value on December 31 will be:
Plan Assets at Fair value, January 1 = $640,000,000
Add: Actual return on plan assets = $44,000,000
Add: Contributions to the pension fund (end of year) = $94,000,000
Less: Pension benefits paid (end of year) = $36,000,000
Plan Assets at Fair value, December 31 = $742,000,000