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crimeas [40]
3 years ago
7

Formulate but do not solve the problem. The management of a private investment club has a fund of $250,000 earmarked for investm

ent in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). Management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. The amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. If the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (Assume that all the money available for investment is invested.) _ = 250,000 _= z _= 22,500.
Business
1 answer:
garri49 [273]3 years ago
5 0

Answer:

In this problem it is necessary to propose and solve the following system of equations:

0.15 X + 0.10 Y + 0.06 Z = 0.09 * 250,000       (1)

X + Y + Z = 250,000                                          (2)

Z = 2 ( X + Y )                                                      (3)

Being the variables

X = $ invested in high-risk stocks

Y = $ invested in medium-risk stocks

Z = $ invested in low-risk stocks

Explanation:

Equation (1) tells us that the sum of the amounts invested in each type of action multiplied by its expected return, is equal to the return that is desired for the entire investment (9% of $ 250,000).

Equation (2) says that the sum of the investments must be equal to the money available to invest.

Equation (3) requires that money invested in low-risk shares (Z) be equal to twice the amount invested in the other two categories.

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Oliga [24]

Answer:

B.

Explanation:

Threat Modeling is the process of identifying and optimizing network security. This practice helps to find the possible threats to confidential information.

<u>Threat Modeling is used to protect the systems. In this practice, the consultant identifies the enterprise's assets and analyze the work of all applications. Then it sets the security profile on all applications and documenting adverse effects of it</u>.

In the given scenario, the consultant will use the tool or technique of threat modeling to identify the potential attackers.

So, the correct answer is option B.

8 0
3 years ago
ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost the market share of their widgets. This i
crimeas [40]

Answer: Option E

                                                   

Explanation: In simple words, it refers to the situation in which two rival companies in an industry cut their prices with the objective of cutting the others customers and gaining a higher market share.

        Generally it is performed for short term so that other firm could be demolished from the market but a company having strong reserves can perform it for a long term as well.

It is more evident in industries where the products of two companies are close substitutes of each other and there are few firs in the industry.

7 0
4 years ago
When computing the weighted average cost of capital, which of these are adjusted for taxes? a. cost of debt b. both the cost of
ololo11 [35]

Answer:

a. cost of debt

Explanation:

The formula to compute the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

Since the payment for the dividend is not entitled to a tax deduction but the payment for interest is entitled to a tax deduction. And, the after-tax is considered for the cost of debt and the same is shown in the formula above

6 0
4 years ago
Jamon is a manager in a human resources organization. He has a message for Bob who works on the assembly line. What channel is h
mestny [16]

Answer: All of the above

Explanation:

The options include:

a. Face-to-face

b. Telephone

c. Electronic mail

d. All of the above

Since the manager manager has a message for Bob, any of the communication channels given here can be used.

There is no preferred communication channel here. The manager may decided to tell Bob the message face to face when he sees him. Also, he can call him on the telephone or send an email to him.

Therefore, the correct option is All of the above.

3 0
3 years ago
Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a
ValentinkaMS [17]

Answer:

The correct answer is True.

Explanation:

The concept of “Disruptive Innovation” is relatively new, it was introduced by Clayton Christensen in 1997 in the book “The innovators dilemma” and refers to how a product or service that originally was born as something residual or as a simple application without Many followers or users quickly become the leading product or service in the market.

Disruption therefore occurs when emerging companies use new technologies or new business models and outperform the market that were the leaders until then.

There comes a time when users do not perceive as a differential advantage the type of evolutionary innovation that has been applied to a product, because they no longer need all those new features that the manufacturer has added to increase the profit and then the manufacturer becomes vulnerable and the evolution of that particular product ceases to be decisive, from that moment the price of that product can become decisive or another product will arrive with a new disruptive technology that will compete with the previous product and with the established technology. The most normal is that new products or services are easier to use and cheaper than products that were already on the market before and thus quickly capture the interest of consumers.

6 0
3 years ago
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