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4 years ago

Which statement is not true regarding the capital market line (CML) and the security market line (SML) ?

Business

1 answer:

marysya [2.9K]4 years ago

4 0

Answer:

The correct choice is D)

All securities DO NOT lie on the Securities Market Line (SML) in the capital asset pricing model (CAPM).

Explanation:

The security market line (SML) is a line drawn on a chart that portrays a graphical representation of the capital asset pricing model (CAPM)—which shows various degrees of market risk, for different marketable securities, plotted against the expected return of the entire market at any given time.

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In the current year, Wilson Enterprises, a calendar year taxpayer, suffers a casualty loss of $135,000. The casualty was attribu

bekas [8.4K]

Answer:

Wilson Enterprises is entitled to claim his casualty loss since it was a federally declared disaster and has not been compensated by any insurance company as the question proclaimed. Wilson Enterprises is therefore entitled to a casualty loss of $76,725.00

Explanation:

Casualty and theft losses are limited to a $100 threshold per loss event (this works like a deductible) and an overall amount that must exceed 10 percent of your Adjusted Gross Income (AGI) in order to take the deduction. Losses do not include any property that is covered by insurance if the insurance company reimburses you for the loss.

SOLUTION

Wilson Enterprises is therefore entitled to a casualty loss of $135,00.00

Therefore, using the provision of the law, $100.00 was to be the statutory claim

= $135,000.00 - $100.00) = $134,900.00

∴ AIG = $518,750.00

Therefore, 10% 0f AIG Threshold = ($518,750.00 x .10) =$58,175.00

To find the deductible Loss

$134,900.00 - $58,175.00 = $76,725.00

Therefore, the deductible loss is $76,725.00

8 0

3 years ago

Pelican Cove Corporation is trying to decide whether to invest in equipment to manufacture a new product. If the investment proj

Karo-lina-s [1.5K]

Answer:

$35,780.-

Explanation:

The company´s cash flow equals the cash coming into the business minus the cash going out. Annualizing your cash flow converts it to an annual amount that you can compare to cash flows from previous years.

4 0

4 years ago

How can a country respond to a trade embargo?

Vera_Pavlovna [14]

Answer:

D. By imposing a protective tariff

Explanation:

6 0

4 years ago

Read 2 more answers

During 2018, Doug incurs the following deductible expenses:

Alexus [3.1K]

The amount of Doug's taxable income is $27,700.

Explanation:

GIVEN:

AGI = $35,000

State income taxes = $2300

Local property taxes = $3000

Medical expense = $800

Charitable contribution = $2000

Total deduction amount= State income taxes+Local property taxes+Charitable contribution

= 2300+3000+2000

= $ 7300

Total deduction amount= $7300

Taxable income= $35000- $7300

= $27,700

The amount of Doug's taxable income is $27,700.

3 0

3 years ago

You have just turned 40 years old and are trying to decide who much money to put into your retirement plan. The plan works as fo

Karolina [17]

Answer:

$31,886.09

Explanation:

years until retirement = 65 - 40 = 25 years

interest earned 7%

retirement age 65

expected life span after retiring = 95 - 65 = 30 years

financial needs during retirement $250,000 per year

current account balance $200,000

we must first determine how much money you will need when you are 65:

present value = $250,000 x 12.409 (PV annuity, 30 years, 7%) = $3,102,250

your $200,000 will be worth $200,000 x (1 + 7%)²⁵ = $1,085,486.53 in 25 years

so you need $3,102,250 - $1,085,486.53 = $2,016,763.47 extra

using the FV formula for an annuity:

$2,016,763.47 = payment x 63.249 (FV annuity, 25 years, 7%)

payment = $2,016,763.47 / 63.249 = $31,886.09

7 0

3 years ago