Answer:
Standard deviation = 47.69% (Approx)
Explanation:
Given:
Portfolio of Apple stock w1 = 25% = 0.25
Portfolio of Tesla stock w2 = 75% = 0.75
Standard deviation return Apple σ1 = 35% = 0.35
Standard deviation return Tesla σ2 = 60% = 0.60
Correlation coefficient ρ12 = 0.22
Find:
Standard deviation
Computation:
Standard deviation = √w1²σ1² + w2²σ2² + 2w1σ1w2σ2ρ12
Standard deviation = 0.4769
Standard deviation = 47.69% (Approx)
Answer:
$600
Explanation:
If instead of itemizing, Mary had elected the standard deduction last year, then she wouldn't have to include any state income tax refund on her current gross income. But since she itemized her deductions and actually deducted these $600 from her gross income last year, she must include them in he current gross income.
Answer:
It represents the Integration stage
Explanation:
Money laundering is an illegal chain of activities done by individuals or corporate bodies to change the status of money gotten through a criminal activity into legitimate money. This chain of activities starts with the Placement stage then transforms into the Layering stage, then ends when it is already integrated into the legitimate financial system through the Integration stage.
After the money launderer conceals the illegal money through bank deposits or purchasing a life insurance policy at the Placement stage, the launderer then proceeds to further break the money into smaller amounts to evade suspicion by numerous transactions and bank deposits at the Layering stage, which is then ended by partial or whole surrenders of life insurance policies to make it now legitimate money.
Scarcity refers to a state of being in short supply.
Scarcity exists because distribution of resources is unequal. Majority of the people tend to get more than they need in preparation for future uses. They did not take into consideration that other people also need the items they have stocked up on. This results to unequal distribution of resources. Those who had first access to the goods have more than they need while those who came last have goods that is not enough to sustain their needs. They are the ones experiencing scarcity.
Answer:
a. 10.8%
b. 6.32%
c. 4.5%
Explanation:
a. Required return= (Expected dividend payment/current stock price) + dividend growth rate
Required return= (2.34/37)+0.045
Required return= 0.108 ⇒ 10.8%
b. Dividend yield= dividend per share / price per share
Dividend yield= 2.34/37= 0.0632 ⇒ 6.32%
c. The capital gains yield refers to the rise in the price of the stock. In this case, the statement indicates that the dividends are anticipated to maintain a growth rate of 4.5 percent forever and according to the definition of capital gains yield that would be the answer for the expected capital gains yield.
