If P denotes the price of goods and services measured in terms of money, then:_______

The optimal risky portfolio can be identified by finding: I. The minimum-variance point on the efficient frontier II. The maximu

Darina [25.2K]

Answer:

A. III and IV only

The tangency point of the capital market line and the efficient frontier

The line with the steepest slope that connects the risk-free rate to the efficient frontier

Explanation:

4 0

3 years ago

A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to r

Mashutka [201]

Answer:

the expected return on the portfolio is 12.34%

Explanation:

The computation of the expected return on the portfolio is shown below:

Expected Return is

= Investment in BBB × Return+ Investment in ZI × Return

= 16.4 × 48% + 8.6 ×52%

= 7.87% + 4.47%

= 12.34%

hence, the expected return on the portfolio is 12.34%

7 0

2 years ago

Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for

Shtirlitz [24]

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

The cotton country of lancaster, california has owned his home for ten years
purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy

the replacement cost of the home is now $300,000

a. hence,

the proportion of the house insured = $\frac{InsuranceAmount}{PriceOfThe Home} \times 100$ %

$= \frac{160000}{178000}\times 100$

= 89.89%

Percentage amount covered by the policy

= proportion of the house insured = 89.89%

Amount covered by the policy in dollars

= $20,000 × 89.89%

= $17,978

b

Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss = current value of the home

= $ 300,000

5 0

3 years ago

The objectives of U.S. monetary policy are to achieve ______.

SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth. If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0

3 years ago

Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000

avanturin [10]

Answer:

Option (D) is correct.

Explanation:

Preferred dividend per year:

= (Outstanding preferred stock × Par value of preferred stock ) × 5% preferred stock

= (1,000 × $100) × 5%

= ($100,000) × 5%

= $5,000

Any balance left over would be paid to common stockholders.

Year 1:

Paid to preferred stockholders = $2,000

Paid to common stockholders = 0

Year 2:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($6,000 - $5,000)

= $1,000

Year 3:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($32,000 - $5,000)

= $27,000

Therefore,

Total amount of dividends paid to preferred Shareholders:

= Year 1 + Year 2 + Year 3

= $2,000 + $5,000 + $5,000

= $12,000

Total amount of dividends paid to common Shareholders:

= Year 1 + Year 2 + Year 3

= $0 + $1,000 + $27,000

= $28,000

5 0

3 years ago

If P denotes the price of goods and services measured in terms of money, then:________.