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Reptile [31]
3 years ago
10

Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 9%. The effi

cient (tangent) portfolio has an expected return of 12% and a volatility of 12%. The risk-free rate of interest is 3%. You want to maximize your expected return without increasing your risk. Without increasing your volatility beyond its current 9%, the maximum expected return you could earn is closest to:
Business
1 answer:
ira [324]3 years ago
4 0

Answer:

9.75%

Explanation:

The capital asset pricing model is used to calculate required rate of return for a certain project. The rate of return is calculated based on risk free rate and rate of return with the volatility. In the given scenario the maximum expected return will be calculated using the CAPM model,

E Rp = Rf + volatility p (E [Rm] - Rf) / volatility m

0.03 + 0.09 (0.12 -0.03) / 0.12

= 9.75%

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You are trying to decide which of two automobiles to buy. The first is American-made, costs $3.0500 x 104, and travels 28.0 mile
siniylev [52]

Answer:

Both cars(American and European) must travel 8,060 kilo metres each during their lifetime for the total cost(purchase cost + fuel equivalent) to be equivalent

Explanation:

With regards to the above, the cost equation for both cars will be equated together.

Furthermore, we will convert gallons into litres while also converting miles into kilometers.

Since 1 gallon has 3.785 litres; 1 mile also has 1.609 kilo metre, hence milage of the first car in kilo metre per litre would be ;

Milage American made = [ 28 miles × 1.609 ] / 3.785

= 11.90 kilo meter per litres.

Cost of Gas per litre = $3 per gallon / 3.785

= 0.79 per litre

Gas cost per kilo metre(American made) = 0.79 per litre / 11.90

= 0.066 per km

Gas cost per kilo metre(European made) = 0.79 per litre / 19.0

= 0.042 per km

We can sum up the equation of first car which is American made( Purchase price + Fuel cost)

We can make a be the number of kilo metres where total cost for both cars would be equal.

Total cost = 317.2 + 0.066a

Also, the total cost equation - purchase price + fuel cost of European car is represented as;

Total cost = 510.64 + 0.042a

317.2 + 0.066a = 510.64 + 0.042a

Collect like terms

0.066a - 0.042a = 510.64 - 317.2

0.024a = 193.44

a = 8,060 kilo metres

Therefore, both cars(American and European) must travel each 8,060 kilo metres in their life time for the total costs( purchase cost + fuel cost) to be equivalent.

5 0
4 years ago
You have 40 years left until retirement and want to retire with $5 million. Your salary is paid annually, and you will receive $
Marat540 [252]

Answer:

16.67%

Explanation:

Calculation to determine what percentage of your salary must you save each year

First step is to calculate the Annual savings

Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]

Annual savings=$5 million*0.07/(1.1^40-1.03^40)

Annual savings=$8333.88

Now let determine the percentage of the salary you must save each year

Proportion of savings=$8333.88/$50,000

Proportion of savings=0.1667*100

Proportion of savings=16.67%

Therefore the percentage of your salary that you must save each year is 16.67%

5 0
3 years ago
In an appraisal interview, the rating manager should never ________. take any responsibility for an employee's performance assis
Sindrei [870]

Answer:

The correct answer is letter "C": refuse to take some responsibility for an employee's performance if the supervisor neglected to provide regular performance feedback.

Explanation:

Performance appraisals are evaluations managers make of employees to find out if they are meeting the expectations of their duties. These tests aim to measure the efficiency of employees in their day-to-day activities at work, The appraisals have a standard method of rating workers according to their tasks and position in the firm and based on that standard feedback is provided.

<em>Supervisors are in charge of giving workers immediate suggestions on how workers could improve their operations but if they have not done that resulting in poor performance of an employee, the managers conducting the tests must accept part of the responsibility for that to happen relies on the managers.</em>

8 0
4 years ago
Zona pharmaceuticals is a global pharmaceutical firm based out of Texas. It employs 3200 people who work all over the United Sta
Mashcka [7]

Answer: Define metrics to assess project progress and identify project-related risks

Explanation:

If Zona Pharmaceuticals decide to implement an enterprise resource planning management system in order to support product innovation and also to reduce the time to market a set of new products, the best way to avoid a failed enterprise system implementation is to define metrics in order to assess project progress and also identify project-related risks.

By defining metrics, this will show the progress of the project as the firm can see if the project is going according to plan and hasn't deviated from the goal. It is also vital to check any project related risks.

7 0
3 years ago
Write the names of sender and receiver of quotation letter in foreign trade.​
mariarad [96]

Answer:

Wydm

Explanation:

5 0
3 years ago
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