Answer:
$1,275
Explanation:
The computation of the amount of commission for paying is shown below:
= Invested amount × fund charges a load percentage
= $30,000 × 4.25%
= $1,275
By multiplying the invested amount with the fund charges a load percentage we can easily calculate the amount of commission and the same is to be considered
Answer:
C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.
Explanation:
NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.
Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.
Thus, false statement is
Statement C
Answer
Before I answer this question, you must note that the equilibrium price is created by both the amount supplied of a certain product as well as how much "customers" there are (or the amount that is bought in all). This however, is usually not taking account any potential competitors.
For example, let say that the price in creating the product (or buying) is $15. This means that right now, the company loses $15 for one of the products. To make a profit, the selling price must be >$15. However, (unless they are a monopoly, such as, for example, electrical companies) there are competitors that they must fight with to get customers. Of course, there are other things that can affect the price, depending on the demographic and area.
So how does supply and demand affect the equilibrium price? The limits of the supply & the amount of demand would help determine the price by the amount of people buying and the supply of the product.
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<span>1.</span><span>I once saw an advertisement for a weight loss supplement. The
persons in the ad seemed to change significantly after using the product. Apart
from their appearance, everything seemed to be going better for them.</span>
Answer:
Consider the following calculations
Explanation:
a) If the weight of risky portfolio is 'y' then weight of T-bill would be (1-y).
Expected return on clients portfolio = weight of risky portfolio x return on risky portfolio + weight of T-bill x return on T-bill
or, 15% = y x 17% + (1 - y) x 7%
or, y = 0.8
weight of risky portfolio = 0.8, weight of T-bill = 0.2
b)
Security Investment Proportions
T-bill 20% (from part a)
Stock A 80% x 0.27 = 21.6%
Stock B 80% x 0.33 = 26.4%
Stock C 80% x 0.40 = 32%
Total 100%
