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kaheart [24]
2 years ago
14

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o

f 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. The slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately ________.
Business
1 answer:
vladimir1956 [14]2 years ago
3 0

Answer:

50%, or 0.5

Explanation:

The slope of the capital allocation line (CAL) can be calculated using the following formula:

Slope of CAL = (Return of risky asset - Return of Risk-less asset) ÷ Standard deviation of the risky asset

Therefore, we have:

Slop of CAL = (16% - 6%) ÷ 20% = 50%, or 0.5

Therefore, slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately 50%, or 0.5.

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How can marketing affect the society?
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Answer:

Marketing drives a consumer economy, promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.

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2 years ago
Economic models are typically based on the principle that people behave rationally. However, people do not always behave rationa
BartSMP [9]

Answer:

<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>

Explanation:

The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.

3 0
3 years ago
Mint Co.'s cash balance in its balance sheet is $1,300,000, of which $300,000 is identified as a compensating balance. Additiona
Natasha2012 [34]

Answer:

Correct option is B Yes and Yes

Yes - Compensating shall be reported, And Restricted shall also be reported.

Explanation:

Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.

Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.

Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.

Therefore correct option is B

Yes - Compensating shall be reported, And Restricted shall also be reported.

7 0
3 years ago
A business landowner has a duty to reasonably maintain his or her property for safety. when the business invites guests or custo
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if a business invites guests or customers onto its premises, then that business has the duty to c. warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.

<h3>What is the duty of a business to its guests?</h3><h3 />

When a business gets guests on its premises , it has two duties as regards their safety. The first is to warn them about potential harm or danger that they might face.

The second duty is to offer some reasonable protection to the guests in case of any foreseeable risk of harm.

Options for this question include:

  • a. warn invitees and trespassers of, and reasonably protect them from, a foreseeable risk of harm or danger from something on the premises.
  • b. reasonably protect invitees from every possible risk of harm or danger that could exist on the premises.
  • c. warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.
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Find out more on the duties of a business to customers at brainly.com/question/24553900

#SPJ1

5 0
1 year ago
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