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ale4655 [162]
2 years ago
9

Consider the following information on three stocks: State of Economy Probability of State of Economy Rate of Return if State Occ

urs Stock A Stock B Stock C Boom .25 .27 .15 .11 Normal .65 .14 .11 .09 Bust .10 −.19 −.04 .05 A portfolio is invested 45 percent each in Stock A and Stock B and 10 percent in Stock C. What is the expected risk premium on the portfolio if the expected T-bill rate is 4.1 percent?
Business
1 answer:
PolarNik [594]2 years ago
5 0

Answer:

market premium = 0,0781 = 7.81%

Explanation:

We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:

We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy

Calculations for boom:

Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)

0.25    x    (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05

\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]

market expected return 0,1191

Market premium: 0,1191 - 0,041 = 0,0781

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List 10 effective methods used to maintain employment. 
Sphinxa [80]

Answer:

I don’t know that I would call them methods - a better word might be behaviors. And I don’t know if I can come up with ten.

  • Never be late for work and never leave early to go home. If you must leave early (or you know you’ll be coming in late the next day) be sure to tell your boss first.
  • Dress appropriately and respectfully for the job. Always start the day wearing clean clothes.
  • Be respectful of your boss
  • Do every assignment to the best of your ability. When you are finished, let your boss know and ask what you can do next rather than waiting to be told (unless you know what to do next).
  • Don’t whine or complain about the work assigned to you
  • Try to constantly learn more about your job and apply what you learn to do your job better
  • Don’t badmouth your fellow employees (unless specifically asked by your boss)
  • When it doesn’t severely impact your work, try to help out your fellow employees if they need it - especially the newer ones
  • Keep your work area organized
  • Don’t be afraid to make constructive, non-critical suggestions to your fellow employees or even your boss, but be sure the suggestions are well-researched and carefully thought out
6 0
3 years ago
What drivers for unethical behavior are evident in reviewing the actions of Bernard Madoff and the managers of the Stanford Fina
GREYUIT [131]

The unethical behavior of the Bernard Madoff and the managers of the Stanford financial groups are fraudulent and they aims at their personal gain and the wealth they earned through the concept of self dealing

Explanation:

They were clearly involved in such activities due to over-zealous and for their personal gain and in the pursuit of wealth and self interest. His main reason for existing his business was for funding his lifestyle and his expenses.

This is totally unethical or amoral in the work climate and it is the sole purpose or the duty of the company to ignore what is right and what is wrong and to get away with the strategy that they are not suitable with.

6 0
3 years ago
You have been awarded an insurance settlement of $211,400 that is payable one year from today. What is the minimum amount you sh
Gekata [30.6K]

If you can make 6.3 percent on the investments, the minimum amount you should take today in exchange for this settlement is $198,871. (Approx).

<h3>What is the present value?</h3>

The current value of a future sum of money or stream of cash flows, assuming a certain rate of return, is known as present value (PV).

In the given case, there is a need to find out the present value of $211,400.

<u>Computation</u>:

According to the given information,

Present value = $211,400 ×  1/(1 + r)n

Present value =$211,400× 1/1.063

Present value =$211,400× 0.940734

Present value =$198,871(Approx).

Learn more about the present value, refer to:

brainly.com/question/17322936

#SPJ1

8 0
2 years ago
A 30-year $185,000 amortized mortgage loan has a fixed interest rate of 4.375% and fixed monthly payments. The monthly payment i
dangina [55]

Answer:

$177,114.99

Explanation:

The ending balance of the loan at the end of the 30th month after the monthly payment is the beginning balance at the beginning of the month plus the interest for the month minus the monthly payment.

Note that the interest expense for the month increases the loan balance while the monthly payment reduces the balance.

interest expense for 30th month=beginning balance*fixed interest rate/2

interest expense for 30th month=$177,391.93*4.375%/12

interest expense for 30th month=$646.74

monthly payment =$923.68

The ending balance of the loan=$177,391.93+$646.74-$923.68

The ending balance of the loan=$177,114.99

7 0
3 years ago
Select the web sites that allow potential employers to pay to post job listings. adquest3d.com wix.com michigan.gov careerbuilde
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The right answer for the question that is being asked and shown above is that: "careerbulilder.com" Among the following choices, the career builder site is suitable for employers to choose for an employee based on the job listings.
6 0
2 years ago
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