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kirza4 [7]
3 years ago
12

You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with

an expected return of 8 percent. Your goal is to create a portfolio with an expected return of 12.4 percent. All money must be invested. How much will you invest in stock X?
Business
1 answer:
mel-nik [20]3 years ago
7 0

Answer:  $6,285.71

Explanation:

$10,000 to be invested.

The portfolio expected return is a weighted average of the two stocks.

Preferred return = 12.4%

0.124 = \frac{0.15X + 0.08(10,000 - X) }{10,000}

1,240 = 0.15X + 800 - 0.08X

1,240 -800 = 0.07X

0.07X = 440

X = $6,285.71

Invest $6,285.71 in Stock X.

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Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own productsalong with the products original
UNO [17]

Answer:

Option A. It will lower its costs through economies of scale.

Explanation:

The reason is that the sales of both of the companies will increase and cost can be controlled by integration of departments like finance department, distribution department, etc. This will decrease the cost of the product which will be because of higher sales and cost benefits due to integration of department and this higher sales increases the production which reduces the cost. So the option A is correct.

4 0
3 years ago
One of the elements of the Fraud Triangle focuses on how easy or hard it is for the internal control system to prevent any fraud
olga55 [171]

Answer: Opportunity

Explanation:

1. Opportunity - Given the fact that employees are granted access to very important documents, this might provide them the opportunity to commit theft. Employees who occupy top positions have access to classified information of the company which when manipulated can result to disastrous consequences. It now be holds on the employers of labour or the internal control system, to limit access to such information so as to make it hard for such fraud to be committed.

The procedures used by auditors to provide evidence are in two phases namely; the planning phase and execution phase.

1. The procedure for the planning phase is - Designing Appropriate Procedures : The evidence in this case could be a red flag noticed in the account records. The person who tried to commit the fraud could change figures in places that may not be noticeable.

2. The procedure for the execution phase involves - Implementing Appropriate Procedures : The evidence could be seen as an error. This error most likely results in wasteful spending.

8 0
3 years ago
The total dollar value of consumption, investment, government spending, exports, and imports is provided in the table above. Wha
Ierofanga [76]

The GDP of this fictional country is $ 8,000,000 (option C)

<h3>What is the GDP?</h3>

Gross domestic product (GDP) is a term to refer to a macroeconomic magnitude that expresses the monetary value of the production of goods and services in final demand of a country or region during a period, usually one year.

There are several ways to know the GDP of a country, the simplest is a mathematical operation that includes the following data:

  • The consumption of households and non-profit institutions.
  • The investment of companies and families.
  • The final consumption expenditure of the public sector.
  • The value of net exports.
  • The value of imports.

The operation states that we must add the first four indicators and subtract the last one. According to the information provided in the fragment, the operation would be:

  • 5 + 2 + 2 + 1 - 2 = 8

According to the above, the GDP of this fictitious country is $ 8,000,000 (option C)

Learn more about GDP in: brainly.com/question/14034620

6 0
2 years ago
Which of the following elements influence your view of the financial world?
Basile [38]
<h2>All the given options stands right.</h2>

Explanation:

Option 1:

When we spell the word "finance", the first vocabulary that comes to everyone's mind is the risk involved. There is always risk factor associated with investing of money/ doing a business. So we need the skill of tolerance when there is a loss.

Option 2:

The belief that we have on the financial aspect, decides our financial status. So the better control leads to good financial status.

Option 3:

This is essential for everyone who handles money. Knowledge on personal finance will guide the individual to handle money in an effective way.

4 0
3 years ago
Which type of investment would a person with a high-risk tolerance likely choose?​
uranmaximum [27]

Answer:

stocks and shares

Explanation:

Usually in investment world the risk profile plays an important role in the process of choosing among the different securities those which best fits to the investor needs. So there are a lot of classifications for risk profile, but the most common would be lower, medium and high risk profile, each one has a different need as follows:

  • Low risk profile: those investors are looking for low rates of return because their goal is to keep the purchasing power of the money despite the inflation, and example of securities which offers this kind of return are the treasury securities .
  • Medium risk profile: this kind of investors seeks for a higher return than low risk, but are conscious that they must have a high possibility of losing money. and example of this kind of securities are the bad risk qualification.
  • high risk profile. those investors are conscious they are exposed to lose all the money invested, but despite that they kept this kind of securities because are looking for a higher return, and example of this securities are stocks of companies, because this kind of securities are more likely to suffer variations in their price, as you can make a lot of money you can lose a lot too.
3 0
3 years ago
Read 2 more answers
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