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algol13
2 years ago
6

Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 45%. The T-bill rate

is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 29 % Stock B 38 Stock C 33 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 14%. a. What is the proportion y? (Round your answer to 1 decimal places.)
Business
1 answer:
quester [9]2 years ago
5 0

Answer:

80%

Explanation:

In order to calculate this, we use the portfolio expected rate of return (PERR) as follows:

PERR = Rf + (Rp - Rf)y …………………………………………….. (1)

Where;

PERR = Portfolio expected rate of return = 14%, 0.14

Rf = T-bill rate = 6%, or 0.06

Rp = Expected rate of return = 16%, 0.16

Substituting the values into equation (1), we have:

0.14 = 0.06 + (0.16 – 0.06)y

0.14 – 0.06 = 0.10y

y = 0.08/0.10 = 0.80, or 80%

Therefore, the proportion y is 80%  

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First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest
stiv31 [10]

Answer:

You will have $10,306 more

Explanation:

In this question, we are asked to calculate the difference in the amount of money we will earn if the same deposit amount is made in two different banks with different interest payment scheme

Firstly, Calculate the amount in the account as follows:

Future value = Interest + Amount = (Am ount x Period x Rate) + Amount = ($54,000 x 10 x 6%) + $54, 000 = $32,400 + $54,000 = $86,400

Therefore, the future value is

$86,400

Now, we calculate the amount by using the compounding as follows:

Future value = Amount x (1+ Rate)^n =

$54,000 * (1+0.06)^10

= $54,000 * 1.791 = $96,706

Therefore, the compound future value is

$96,706

The difference in amount is calculated as follows:

Difference in amount = $96,706 - $86,400 = $10,306

5 0
3 years ago
when considering the materials aspect of your art show budget, you should consider everything you need others to do to make the
sladkih [1.3K]

When considering the materials aspect of your art show budget, you should consider everything you need others to do to make the show happen, this statement is false.

An art show is historically the distance wherein artwork objects meet an target market. The showcase is universally understood to be for a few brief duration except, as is hardly ever genuine, it is said to be a "everlasting exhibition". In American English, they may be referred to as "showcase", "exposition" or "display".

What is the reason of an art show?

"Short solution: to make artists' ideas public. "long answer: The reason of an art show is ultimately unique to every exhibition, pushed with the aid of artists' ideas, the context of the distance, and the organizer/curator.

How do I get into art show?

Recognize the topic.

Study and understand the rules thoroughly.

Follow the regulations.

Input the most quantity of portions that you are allowed.

Provide the info but not any greater than that.

Enter as many suggests as possible.

Do not take it for my part in case your artwork doesn't get in.

Learn more about art show here:- brainly.com/question/25729154

#SPJ4

8 0
2 years ago
McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a cu
creativ13 [48]

Answer:

5.75%

Explanation:

First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.

<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.

Maturity of the bond ; N = 14.5*2 = 29

Semi-annual rate ; I/Y = (5.3%/2) = 2.65%

Face value ; FV = 1000

Price of the bond or PV = -1045

then compute semiannual coupon payment ;  CPT PMT = $28.743

Annual coupon rate is therefore = $28.743*2 = $57.486

Coupon rate = coupon payment / face value

Coupon rate = $57.486 / 1000

= 0.05749 or 5.75%

8 0
3 years ago
31. If a company initially records the purchase of supplies to the supplies expende account, the mount of the adjusting entry ma
scoundrel [369]

We can actually deduce here that the amount of the adjusting entry that was made at the end of an accounting period will be equal to the supplies on hand at the end of the period.

<h3>What is accounting period?</h3>

An accounting period is actually known to be the period of time that a particular accounting function is covered. It can be a fiscal year, quarterly, monthly or even weekly.

We see here that the amount of the adjusting entry that was made at the end of an accounting period will be equal to the supplies on hand at the end of the period.

Learn more about accounting period on brainly.com/question/26533843

#SPJ12

6 0
2 years ago
Photo Framing's cost formula for its supplies cost is $1,070 per month plus $17 per frame. For the month of November, the compan
Ainat [17]

Answer:

$311 unfavorable

Explanation:

The computation of the spending variance is shown below:

= Actual  supplies cost - flexible supplies cost

where

Actual supplies cost is $11,700

And, the flexible supplies cost would be

= Actual level of activity × price per frame + supplies cost per month

= 607 frames ×$17 + $1,070

= $10,319 + $1,070

= $11,389

Now put these values to the above formula  

So, the value would equal to

= $11,700 - $11,389

= $311 unfavorable

4 0
3 years ago
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