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Vlad1618 [11]
3 years ago
6

You have $1,000,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 18 percent and Stock Y w

ith an expected return of 10 percent. Your goal is to create a portfolio with an expected return of 13 percent. All money must be invested. How much will you invest in Stock X?
A. $450,000
B. $625,000
C. $500,000
D. $375,000
Business
1 answer:
pogonyaev3 years ago
8 0

Answer:

D. $375,000

Explanation:

Expected return of 13% for $1,000,000 will be $130,000

If we invest $375,000 in Stock X, our expected return based on 18% will be $ 67,500 and the remaining $625,000 will be invested in Stock X, therefore expected return based on 10% will be $ 62,500 and thereby giving the total return of $130,000 which is 13% of $1,000,000 and hence $375,000 will be invested in Stock X

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You were planning to spend your Saturday working at your part-time job, but a friend asks you to go trekking at Karagöl. What is
Natali5045456 [20]

Answer:

the true cost (opportunity cost) of going trekking is what the amount that you could have earned from your part time job on that day instead of going trekking. If you were planning to to study, then the true cost of trekking with your friend would be the loss of all the potential knowledge that you could have gain from studying.

Explanation:

opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

7 0
3 years ago
Real GDP per capita Multiple Choice 1. can grow either more slowly or more rapidly than real GDP. 2. cannot grow more slowly tha
Nat2105 [25]

Answer:

1) can grow either more slowly or more rapidly than real GDP.

Explanation:

Real GDP per capita is the result of dividing real GDP by the total population of a country. Real GDP per capita changes are determined by both the changes in the real GDP and the changes in the population.

If real GDP grows at a slower rate than the population, then real GDP per capita will decrease. But if real GDP grows at a faster rate than the population, then real GDP per capita will increase.

For example, real GDP grows at 3% while population grows at 2%, real GDP per capita will grow by 1%. But some countries have positive economic growth and negative population growth, so the real GDP could grow by only 2%, but since the population growth is -1%, the real GDP per capita will grow at 3%.

7 0
3 years ago
The interest rate that lenders publish or advertise is usually:
ivann1987 [24]

Answer:

It’s A the nominal interest rate

Explanation:

8 0
2 years ago
How much does a trumpet weigh?
rjkz [21]

I think that may depend on the trumpet. I'm not sure tho

5 0
3 years ago
Read 2 more answers
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 milli
laiz [17]

Answer:

a)

MACRS 3 year depreciation schedule

33.33% x $2,300,000 = $766,590

44.45% x $2,300,000 = $1,022,350

14.81% x $2,300,000 = $340,630

carrying value at end of year 3 = $170,430

net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60

cash flows:

year 0 = -$2,300,000 - $270,000 = -$2,570,000

year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410

year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677

year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993

b)

NPV = $297,794, and IRR = 16.12%

6 0
3 years ago
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