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AysviL [449]
3 years ago
11

You have $22,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with

an expected return of 13 percent. If your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in Stock X? In Stock Y?
Business
1 answer:
Snowcat [4.5K]3 years ago
4 0

Answer:

The answer is "$ 8.140".

Explanation:

The two stock portfolio formula is as follows:  

Return portfolio = weightage 1 * Return expected 1 + weightage 2 * Return expected 2  

weightage 2 = 1-weightage 1 Return portfolio  = weightage 1 * Return expected 1+ (1-weightage 1) * Return expected b  

Replacement of data and resolution of fo weigtage 1,  

11.74% = weights of 1 * 11% + (1-weights of 1)*13%    

weights of 1 * 2% = 13% -11.74% = 1.26%  

Weightage Stock 1 = 0.63  

weightage 2 = 1-weightage 1 = 0.37  

In 22,000 dollars, 63% invest in stocks X $13.860 and 37% in 8.140 dollars.

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Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvest
noname [10]

Answer:

The correct option is (A) price; reinvestment

Explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

4 0
2 years ago
3M Co. reports beginning raw materials inventory of $986 million and ending raw materials inventory of $928 million. 3M purchase
Rudiy27

Answer:

$4,634 million

Explanation:

The movement or change in the raw materials balance is as a result of purchases and use. The more the raw materials are used, the more reduced the raw material balance is and the more the purchase, the higher the balance.

Hence the relationship may be stated as

Opening balance + purchases - use = closing balance

$986 million + $4,576 million - amount used = $928 million

Amount used = $986 million + $4,576 million - $928 million

= $4,634 million

4 0
3 years ago
Read 2 more answers
You expect to receive $20,000 at graduation one year from now. you plan on investing it at 6 percent until you have $100,000. ho
Free_Kalibri [48]
The answer will be $120,000
4 0
3 years ago
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
tigry1 [53]

Answer:

$288

Explanation:

Since the total property taxes for the year are $1,140, to find the property tax per month we have to divide by 12 ⇒ $1,140 / 12 = $95 per month

The seller is responsible for paying the property taxes during 3 months and 1 day, to find out the amount for that 1 day we divide the monthly tax by 30 = $3.17 per day.

the total seller's credit = ($95 x 3) + $3 = $285 + $3 = $288

*The seller's credit includes all the expenses that must be paid by the seller, while the seller's debit includes all the money that he receives.

6 0
3 years ago
Assuming an upward-sloping as curve, if an economy is at full employment and consumption spending decreases while all other leve
Yuliya22 [10]

Assuming an upward-sloping as curve, if consumption spending falls while all other levels of expenditure stay the same in an economy that is at full employment, a GDP gap will be visible.

Retail store managers will take activities that result in greater Unemployment when undesirable inventories build up.

<h3>What is GDP?</h3>
  • Gross domestic product (GDP) is a monetary indicator of the total market worth of all the finished products that nations create over a certain time period.
  • This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
  • Consumption, investment, government spending, exports, and imports make up the components of the GDP when it is calculated using the expenditures method.
  • Gross fixed capital formation, changes in inventories, changes in consumption expenditure (by households, NPISHs, and general government),
  • And exports of goods and services are all included in the calculation of gross domestic product (GDP), which is then subtracted from imports of goods and services.

Learn more about GDP here:

brainly.com/question/15682765

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8 0
1 year ago
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