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Answer: 28%
Explanation:
First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:
= Amount invested in risk free / Initial wealth
= -100/100
= -1
The weight of the portfolio will be calculated as:
= 1 - weight of risk free asset
= 1-(-1)
= 1 + 1
= 2
Therefore, the expected return on the resulting portfolio will be:
= 2 × 16 + [(-1) × 4]
= 32 - 4
= 28
Answer:
The transaction allows a seller to take pride in its product
Explanation:
Have a good one!
Answer:
The monthly loan interest = $350
Explanation:
<em>Loan amortization (repayment mortgage)</em>
A repayment mortage is such that a mortgage is repaid using a series of equal installments . Each installmet pays the interest accrued and a portion of the loan
<em>Interest only-mortgage</em>
On the other hand, under an interest only mortgage the borrower is required to pay only the interest due on the loan monthly , the principal can be paid in a lump sum at the end of the loan period.
The advanatage of an interest only mortgage is that it makes mortgage very accessible and affordable. However, the borrower will still be owing the principal amount of the mortgage at the end of the loan period, which might mean a cash flow pressure.
We can work out the monthly pay for an interest only mortgage as foolws:
Monthly repayment =( Loan amount× rate (%) × year)/(year × 12)
The monthly loan interest = (56,000× 7.5% × 15)/12×15
=$350
The monthly loan interest = $350
Answer:
A. Specific Purpose
Explanation:
This is 101 for anyone who wants to write an effective speech, knowing what you want to accomplish and what you want the audience to do by the end of your speech is the idea behind this.
