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liberstina [14]
4 years ago
8

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a

risky portfolio with a standard deviation of 21% only if the risky portfolio's expected return is at least ______.
a. 17.23%
b. 8.41%
c. 5.74%
d. 9.23%
Business
1 answer:
kolezko [41]4 years ago
8 0
C I think it worked for me
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You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-fre
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Answer:

1.

Required rate = risk free rate + beta (market rate – risk free rate)

.12 = 0.0525 + 1.25(X – 0.0525)

1.25X – 0.065625 = .12 – 0.0525

1.25X = 0.0675 + 0.065625

X = .1333125/1.25

 = 0.1065

Marker risk premium = market rate – risk free rate

  = .1065 – 0.0525

   = 0.054 (A)

2.

Beta of portfolio = (5000000/5500000)* 1.25 + (500000/5500000)* 1

= 0.90909* 1.25 + 0.090909* 1

= 1.136 + 0.090909

= 1.2273

3.

Required rate = risk free rate + beta (market rate – risk free rate)

= 0.0525 + 1.2273* 0.054

= 0.0525 + 0.06627

= .11877 or 11.88%

7 0
3 years ago
A company's chart of accounts is: a detailed list of the accounts that make up the five financial statement elements. the set of
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Answer:

A detailed list of the accounts that make up the five financial statement elements.

Explanation:

The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.

The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).

Examples of accounts that can be part of a firm's chart of accounts are: land (asset), cash (asset), notes payable (liabilities), outstanding stock (equity), operating expenses (expenses), and sales revenue (revenues).

The chart of accounts can differ greatly from company to company simply because companies engage in vastly different economic activities.

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How many major OEMs manufacture Class 8 trucks<br> for the North American market?
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There are four major OMEs manufacturer trucks for the North American market

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2 years ago
What is the One Club? They asked me this on my homework assignment.
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Answer:

<h3>The One Club is an American non-profit organization that recognizes and promotes excellence in advertising. Founded in New York City as The One Club for Art & Copy, The One Club produces four annual award competitions: One Show, One Show Design, One Show Interactive and One Show Entertainment.</h3>
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Complete the following sentence.
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Answer:

Auditor

Explanation:

If an interviewer has suspicions of fraud, the interviewer may call on a fraud AUDITOR to assess the situation.

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