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Setler79 [48]
3 years ago
15

Suppose Amy currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bond

s; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 2.5% to 4.5%. In order to do so, she must do which of the following? Check all that apply. Sell some of her stocks and use the proceeds to purchase bonds Accept more risk Sell some of her stocks and place the proceeds in a savings account Sell some of her bonds and use the proceeds to purchase stocks
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

Accept more risk.  

Sell some of her bonds and use the proceeds to purchase stocks .

Explanation:

Typically, the rate of returns associated with stock is higher than the rates of return associated with bonds. This is because a higher risk is associated with stocks, while it is safer to hold bond because bond guarantee payment while stock does not as it fluctuates in value.

Therefore, the intention of Amy to increase the average annual return on her portfolio from 2.5% to 4.5% implies she has to sell some of her bonds which currently has a share of 75% and use the proceeds to purchase stocks which promises a higher rate of return. But at the same time, Amy has to accept more risk associated with stocks.

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The equilibrium price of a good in market A is $24. The current price of the good in market A is $21. At this price, a(n) ______
qwelly [4]

Answer:

Excess supply as well as excess demand in market A

Explanation:

Equilibrium price is the price of the market, where the quantity of the goods supplied will be equal to the quantity of the goods demanded by the customers. The equilibrium price is determined by the intersect of the demand and the supply curve.

When the equilibrium price is $24, but the current price is $21, so, at this price, there would be supply and the demand in excess for the customers of the goods exist in the market A.

7 0
3 years ago
if dan's baseball card collection is stolen after he entered in to an agreement to sell the cards, the contract must be because
Pie

If dan's baseball card collection is stolen after he entered into an agreement to sell the cards, the contract must be discharged, because of the impossibility of performance.

What is the agreement?

A contract between two or more people to do something is referred to as an agreement. Two or more parties must agree to the terms of the agreement in order to create a legally binding commitment.

The baseball card collection entered into an agreement to sell the cards, the contract must be discharged, and the performance is impossible. The credit card was taken. This is the primary reason for the performance's impossibility.

As a result, the agreement of the discharge of the contract.

Learn more about the agreement, here:

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5 0
1 year ago
The business judgment rule is important because it reflects the principle that ________, not _________, have the greatest latitu
Shalnov [3]

Answer: d. company directors; shareholders

Explanation: The conduction and management of a business usually involve making controversial decisions or taking actions that might put the business at risk. In a general sense, greater profits calls for greater risks. As such, the business judgement rule states that the board of directors should be allowed to make such decisions without fear of prosecution by shareholders who might object while acknowledging that managers are not capable of making optimal decisions at all times. The rule therefore aid in protecting a business's board of directors from slight legal allegations about the conduct of business. It is thus important because it reflects the principle that company directors, not shareholders, have the greatest latitude to run companies.

6 0
3 years ago
You recently purchased a stock that is expected to earn 22 percent in a booming economy, 11 percent in a normal economy, and los
UkoKoshka [18]

Answer:

Return on stock will be 12.65%

So option (c) will be the correct option

Explanation:

We have given expected return in booming economy = 22 %

Expected return in normal economy = 11 %

Expected return in recessionary economy = 4%

Probability of boom = 24% = 0.24

probability of normal economy = 67%=0.67

Probability of recession = 9 % =0.09

So  Expected return on stock = (Return in boom economy x Probability of boom economy) + (Return in normal economy x Probability of normal economy) +(Return in recessionary economy x Probability of recessionary economy)

Expected return on stock = (0.22 x 0.24) + (0.11 x 0.67) + (-0.04 x 0.09)

= 0.0528 + 0.0737 = 0.1265 = 12.6%

So option (c) will be the correct option

3 0
3 years ago
The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding a
kirill115 [55]

Answer: producer

Explanation: The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding all legal matters; and distributing the proceeds derived from receipts falls to the producer.

Skills expected from a producer are:-

Organization / Scheduling.

Budgeting.

Problem Solving skills.

Multitasking skills.

Communication skills.

6 0
3 years ago
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