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Sholpan [36]
2 years ago
8

You own a portfolio that has $3,300 invested in Stock A and $4,400 invested in Stock B. Assume the expected returns on these sto

cks are 9 percent and 15 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
Anton [14]2 years ago
5 0

Answer:

12.42%

Explanation:

Expected return on a portfolio is the sum of the products of weight in the portfolio and expected return of all the investment in the portfolio.

To estimate the expected return on the portfolio, the following calculation are done first:

Total amount invested = Amount invested in Stock A + Amount invested in Stock A = $3,300 + $4,400 = $7,700

Weight of a Stock in a portfolio = Amount invested in the Stock / Total amount invested

Therefore, we have:

WA = Weight of Stock A in the portfolio = $3,300 / $7,700 = 0.43, or 43%

WB = Weight of Stock B in the portfolio = $4,400 / $7,700 = 0.57, or 57%

EA = Expected returns on stock A = 9%

EB = Expected returns on stock A = 15%

Therefore,

Expected return on the portfolio = (WA * EA) + (WB * EB) = (43% * 9%) + (57% * 15%) = 12.42%

Therefore, the expected return on the portfolio is 12.42%.

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Adams Company sells a product whose contribution margin is $10 and selling price is $25.
Karolina [17]

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point  = 100 units

solution

we get here Break even point that is

Break even point = \frac{fix\ cost}{contribution\ margin}   ...........1

Break even point = \frac{500}{10}

Break even point = 50 units

but we have given break-even point is 100 units

so answer is b) False

6 0
3 years ago
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess
OlgaM077 [116]

Answer:

Explanation:

1.Total Debt = Total Assets – Total Equity  = 2,700,000 – 1,550,000

= $1,150,000

2.Total assets = Total liabilities +Total equity = $2,700,000

3.Current Assets = Total Assets – Plant and Equipment  = 2,700,000-2,300,000  = 400,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,150,000 – 748,000  = $402000

5.Accounts payables and accruals = current liabilities – notes payables

= 402000  – 150,000  = $252000

6.Working capital = Current Assets – Current Liabilities  = 400,000-402,000

= -2000

7.Net operating working capital = Current assets – Accounts payables and accruals  = 400,000 – 252,000  = 148,000

8.Difference = -2,000-148,000 = -150,000  (indicates note payable)

Recalculation with new information:

1.Total Debt = Total Assets – Total Equity  = 4,000,000 – 2,000,000 -500,000 =  

= $1,500,000

2.Total assets = Total liabilities +Total equity = $4,000,000

3.Current Assets = Total Assets – Plant and Equipment  = 4,000,000-3,000,000  = $1,000,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,500,000 – 950,000  = $550000

5.Accounts payables and accruals = current liabilities – notes payables

= 550,000  – 150,000  = $400,000

7 0
3 years ago
A(n) ________ has no barriers to trade among member countries, includes a common external trade policy, and allows factors of pr
EleoNora [17]

Answer:

A common market

Explanation:

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

A monetary union has all the features of a common market and participating countries have a common currency.

I hope my answer helps you.

6 0
2 years ago
The organizational development (od) process has three steps: ___________, accompanied by feedback.
Helga [31]
<span>The organizational development (od) process has three steps: diagnosis, intervention, and evaluation, accompanied by feedback.

When referencing organizational development, we are referring to the watching the change and performance within organization/businesses. By watching this, organizations can approach and understand how to achieve success and what needs to be changed in order to do so. 

</span>
7 0
2 years ago
BlueSpray Co. has created a new clothes dryer that uses light to dry clothes. The company has created a prototype and is testing
IgorC [24]

Considering these activities, the product is most likely in the development stage of the new-product development process.

Explanation:

The method of introducing an original manufacturer concept into the market is new product creation.

The first element of the product life cycle is the product development phase. This phase not only involves the construction of the product, it also contains research and testing.

At the stage of development of the product life cycle, you must guarantee that your proposal follows the following:

  • Consumer expectations range
  • Requirements of architecture, capital and development
  • The approach in your business plan is illustrated
8 0
3 years ago
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