Answer:
Step 1)Know the Flow. The very first thing you'll need to do is determine your monthly cash flow. ...
Step 2) Set a Goal. OK, so you know your cash flow and how much you can set aside to invest. ...
Step 3) Make Sure Your Time Frame Is Realistic. ...
Step 4) Establish Your Asset Allocation. ...
Step 5) Keep Checking.
Answer:
A) 10.32%
Explanation:
Calculation for the expected return on Bo’s complete portfolio
Using this formula
Expected return =(Proportion of complete portfolio in P×E(Rp))+Proportion of complete portfolio in T bills×Tbill rate)
Let plug in the formula
Expected return=(80%×12%) + (20%×3.60%)
Expected return=0.096+0.0072
Expected return=0.1032×100
Expected return=10.32%
Therefore the expected return on Bo’s complete portfolio will be 10.32%
Answer:
$55.4930
Explanation:
Use the following formula to calculate the value of the call option
Value of call option = ( x N() ) - (K x x N())
where
= current spot price = $200
K = strike price = $180
r = risk-free interest rate
t is the time to expiry in years
N () = NORMSDIST [ (ln(S0 / K) + (r + σ2/2) x T) / σ√T ] = NORMSDIST [ ln(200 / 180) + (0.21 + (0.2252/2) x 1 / 0.225 x √1 ] = 0.9350
N () = NORMSDIST [d1 - σ√T ] = NORMSDIST [ 0.9350 - 0.225 x √1 ] = 0.9013
Placing values in the formula
Value of call option = ( $200 x 0.9350 ) - ($180 x x 0.9013)
Value of call option = $55.4930
Answer:
Net cash flow as at the year end= $22,100
Explanation:
The statement of cash flows for Moore shall be calculated as follows:
Cash balance as at January 1, 2018= $54,000
Cash inflow from operating activities= $35,600
Cash outflow from investing activities= ($43,000)
Cash outflow from financing activities= ($24,500)
Net cash flow as at the year end= $22,100
Answer:
$22 per pound
Explanation:
The computation of the differential revenue of producing and selling Product C is shown below:
= Sale value per pound of product C - Sale value per pound of product B
= $82 per pound - $60 per pound
= $22 per pound
By subtracting the Sale value per pound of product B from the Sale value per pound of product C we can get the differential revenue and the same is shown above