It would be a real estate agent
Answer:
9.33%
Explanation:
The expected return of two asset portfolio is the weighted average of individual assets' expected to return as computed thus:
Portfolio expected return=(weight of market portfolio*expected return of market portfolio)+(weight of riskless security*expected return of riskless security)
weight of market portfolio=amount invested in market portfolio/total invested amount
weight of market portfolio=$80,000/$120,000=66.67%
expected return of market portfolio=market risk premium+riskless return
expected return of market portfolio=8%+4%=12%
weight of riskless security=1-66.67%=33.33%(since total investment which is 100% is 1)
expected return of riskless security=4%
Portfolio expected return=(66.67%*12%)+(33.33%*4%)
Portfolio expected return=\=9.33%
Answer:
9.5%
Explanation:
The computation of the after tax rate of return is shown below:
But before that first determine the following calculations
The interest income earned
= $800,000 × 12.50%
= $100,000
Now After tax interest income is
= $100,000 × (1 - 0.24)
= $76,000
Now
After tax rate of return on investment is
= ($76,000 ÷ $800,000) × 100
= 9.5%
Answer:
$671,300
Explanation:
Calculation to determine Jocasta's adjusted basis in the building.
Adjusted basis =[$750,000-($128,700 - $50,000)]
Adjusted basis=$750,000- $78,700
Adjusted basis = $671,300
Therefore Jocasta's adjusted basis in the building will be $671,300