Answer:
The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1
If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.
16x+ 6(1-x)=10
16x+6-6x=10
10x=4
x=4/10
x= 0.4
This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %
(0.4*16)+(0.6*6)= Rate of return
Rate of return=10%
10% of 1000 = 100
100+1000=$1100
Explanation:
Planning and organizing is how a project manager makes use of productivity tools and creates processes. The project manager may need to use certain tools and processes to do tasks like create a schedule and share information.
<h3>What is
Planning and organizing?</h3>
Planning and organizing serves as the managerial function that portray how how a project manager makes use of productivity tools and creates processes.
In this case, The project manager may need to use certain tools and processes to do tasks like create a schedule and share information.
Learn more about Planning and organizing on:
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Answer:
the Predetermined overhead rate is $95 per machine hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate is
= (Estimated manufacturing overhead cost ÷ Estimated machine hours)
= ($760,000 ÷ 8000)
= $95 per machine hour
Hence, the Predetermined overhead rate is $95 per machine hour
Answer:
The right solution is "4.55%".
Explanation:
Given that,
Expected return,
= 10.1%
Risk-free rate,
= 3.5%
Beta,
= 1.45
Now,
The market risk premium will be:
⇒ 
⇒ 
By putting the values, we get
⇒ 
⇒ 
⇒ 
(%)
