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wlad13 [49]
3 years ago
14

You would like to combine a risky stock with a beta of 1.87 with U.S. Treasury bills in such a way that the risk level of the po

rtfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock
Business
1 answer:
Paul [167]3 years ago
8 0

Answer:

46.5%

Explanation:

The treasury bills have zero beta as they have no systematic risk. Beta is used in the Capital asset pricing Model to demonstrate a relationship between systematic risk and rate of return.

Expected Return = Rf + Beta * Rp

The percentage that should be invested in the risky portfolio will be,

1 - 1 / Beta

1 - 1 / 1.87

= 46.5%

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Cash flows It is typical for Jane to​ plan, monitor, and assess her financial position using cash flows over a given​ period, ty
svetlana [45]

Answer:

A.

TOTAL CASH INFLOW $4,950

TOTAL CASH OUTFLOW $4,357

B. $593

C. First is for Jane to bring down her outflow

Secondly is for Jane to either make use of a credit card or request for loan.

D. Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.

Explanation:

a. Calculation to Determine Jane’s total cash inflows and cash outflows

TOTAL CASH INFLOW

Interest received $ 450

Salary4,500

TOTAL CASH INFLOW $4,950

TOTAL CASH OUTFLOW

Clothes-$1,000

Dining out-500

Groceries-800

Auto payment-355

Utilities-280

Mortgage-1,200

Gas-222

TOTAL CASH OUTFLOW $4,357

Therefore total cash inflow will be $4, 950 while total cash Outflow will be $4,357

b. Calculation to Determine the net cash flowfor the month of August using this formula

The Net cash flow =Total cash inflow - Total cash outflow

Let plug in the formula

Net cash flow =$4,950-$4,357

Net cash flow = $593

Therefore the Net cash flow will be $593

c. In a situation where there is a​ shortage, the few options that will be open to​ Jane will be:

First is for Jane to bring down her outflow

Second is for Jane to either make use of a credit card or request for loan.

d. In a situation where there is a​ surplus, what should be a prudent strategy for Jane is to​ follow:

Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.

6 0
3 years ago
.
kobusy [5.1K]

Hi!

<em>Option C is correct.</em>

<em></em>

Explanation of the choices:

A. - This seems a good choice, however it's not the best choice. Let's come back to it.

B. - This is the best choice because they get to experience first-hand how to manage and make their own money decisions. Choice A might seem good at first, but we can see this is better because they get to make their own decisions and experience hands-on how to do it.

C - This is not a good choice, because it's best to expose children early so they can grow up knowing how to do it.

D - This choice doesn't make sense. What is the point of money if you store it away and don't spend it? This will likely not be a good lesson in the future.

Hope this helps! :D

5 0
2 years ago
Read 2 more answers
For banquets, meals are placed on plates using a "plating belt" that moves plates past staff who place food on each plate. If pl
White raven [17]
<h2>Answer : Option A) 1 foot/second</h2><h3>Explanation :</h3>

If we consider that the plates are placed 2 ft apart and there has to be 1800 meals that needs to be delivered in an hour.

so if we multiply 2 ft and 1800 meals that is delivered in 1 hour,we get 2 X 1800 = 3600 meals in an hour.

If we try to accommodate the plates at each ft then there will be 3600 meals delivered in 1 hour.

we know that 1 hour has 3600 seconds in it.

So, here the distance is 1 ft, and speed has to be determined time is 1 hour = 3600 seconds

3600 meals / 3600  seconds = 1 foot per second.

OR 1800 meals set at 2 ft apart in 3600 seconds will give the speed of the belt as 1 foot per second.

(1 ft = speed X 1 hour)

<h2>so, the speed also will be 1 foot per second. </h2>
3 0
3 years ago
About 13 to 16 guests out of every 100 are purposefully out to scam us and get something for free.
antoniya [11.8K]

Answer:

True

Explanation:

2% out of 100 guest purposefully scam.

3 0
4 years ago
Read 2 more answers
Revenue is recorded when services have been performed or products have been delivered to customers. The accounting principle sup
VladimirAG [237]

Answer:

The revenue recognition principle

Explanation:

The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and  not when cash is received for the service rendered

For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.

3 0
3 years ago
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