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juin [17]
3 years ago
14

You manage an equity fund with an expected risk premium of 12.4% and a standard deviation of 38%. The rate on Treasury bills is

5.4%. Your client chooses to invest $120,000 of her portfolio in your equity fund and $80,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)
Business
1 answer:
timama [110]3 years ago
4 0
  • The expected return = = 12.84 %.
  • The standard deviation = 22.8 %.

<u>Explanation</u>:

On the client's portfolio (total investment = 120 K + 80 K = 200 K,  

  • The expected return

                    = (12.4 %risk premium + 5.4 %risk free return) \times (120 K / 200 K) + 5.4 % \times (80 K / 200 K)

                    = 17.8 % \times 0.6 + 5.4 % \times 0.4

                    = 12.84 %.

  • The standard deviation would be = 38 % \times 0.6 + 0% \times 0.4

                                                                  = 22.8 %.

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kodGreya [7K]

Answer:

Jamal

Explanation:

Given that

Number of required slides = 50 slides

Creating slides Per hour = 15 slides

Bill amount per hour = $750

So by considering the above information, Bette's opportunity cost of creating slides would be

= Bill amount per hour ÷ creating slides per hour

= $750 ÷ 15 per hour

= $50

For making 50 slides, the opportunity cost would be

= $50 × 50 slides

= $2,500

And, Jamal opportunity cost is 30% lower, so it would be  

= $50 - $50 × 30%

= $50 - $15

= $35

And, the billing rate is 25% higher, so it would be

= $750 + $750 × 25%

= $750 + $187.50

= $937.50

So in one hour, it would be

= $937.50 ÷ 35 slides

= 26 slides

Based on the creating slides, the Jamal gains a competitive advantage over Bette

4 0
3 years ago
Oromyx Inc., a manufacturer of home appliances, received consumer complaints about its product demonstration and installation se
Klio2033 [76]

Answer:

B) customer satisfaction

Explanation:

Customer satisfaction is a measure that shows how happy the customers are with the products and services of the company. In this scenario, the work team improved the customer satisfaction because when the employees were trained, they were able to offer a better service which increased customer satisfaction and this was reflected in the service ratings and the rise in sales.

4 0
4 years ago
Joe's Juice Shop operates in a monopolistically competitive market. Joe's is currently producing where its average total cost is
mars1129 [50]

Answer:

decrease and average total cost to increase

Explanation:

Based on the information provided within the question it can be said that in this scenario we would expect Joe's output to decrease and average total cost to increase. This is mainly due to the fact that Joe's Juice Shop is in a monopolistically competitive market meaning that one company controls and dominates the entire market which will ultimately put Joe's Juice Shop out of business.

7 0
3 years ago
Read 2 more answers
At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a temporary difference of $16
Alex

Answer:

1 . Dr ncome tax expense 7

Dr Deferred tax asset 4

Cr Income tax payable 11

2. Dr Income tax expense3

Cr Valuation allowance-Deferred tax asset3

Explanation:

Preparation of Journal entries

JournalDebitCredit

(In million)

1 . Dr ncome tax expense 7

($11-$4=7)

Dr Deferred tax asset 4

($16× 25% = $4)

Cr Income tax payable 11

($44 × 25% = $11 )

2. Dr Income tax expense3

Cr Valuation allowance-Deferred tax asset3

(3/4 × $4) = $3 million

Deferred tax asset= ($16× 25%)

Deferred tax asset= $4 million

Income tax payable= ($44 × 25%)

Income tax payable= $11 million

5 0
3 years ago
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transacti
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Answer:

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Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the income approach sums up all the income earned by factors of production.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Government spending on building is measured in the calculation of GDP as part of government spending.

Services rendered to ones self is not included in the calculation of GDP. So, the value produced by doing your own laundry is not included in GDP.

The effects of externality and pollution aren't included in the calculation luation of GDP. So, the costs of overfishing and other overly intensive uses of resources.

Enjoyment isn't added in the calculation of GDP.

Other items and activties not included in the calculation of GDP include:

A. Illegal activities

B. Transfer payment by government

C. Intermediate goods

I hope my answer helps you

7 0
3 years ago
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