Answer:
The correct answer is option B.
Explanation:
The maturity value of the bond is $700,000.
The bond is issued for $715,000.
The life of the bond is 10 years.
The interest rate is 10%.
The total life expense will be
= 
= 
= $700,000 - $15,000
= $685,000
Answer:
The answer is D. Puffery.
Explanation: When an advertisement is being made, certain boastful and exaggerated claims can be made by a company about the superiority and uniqueness of their product.
This claim is termed as Puffery.
Puffery is defined as advertising or promotional content that makes exaggerated or boastful statements about a product or service that are based on opinion rather than something that can be measured.
Puffery in advertising is done based on the chance that no reasonable person would presume the exaggeration to be literally true.
This is what Esme Inc. has done by claiming that its mascara is the best in the world, and also gives ten times more volume to the eyelashes. This is an exaggerated claim.
Answer:
4%
Explanation:
Simple interest is calculated using the formula
I = p x r x t
in this case, the interest I is the total amount-principal amount
I = $50,000- $46,875
=$3,125
$3,125 = 46,875 x r x 1 year 8 months
$3,125 =46,875 x r/100 x 1.67
3125=78,281.25 x r/100
$3125 x 100 = 78,281.25 x r
$312500= 78,281.25
r=312500/78,281.25
r=3.992
r=4%
<span>#1) Which of the law ideas might be created under the Elastic Clause?
Answer: First we have to understand that the Elastic Clause is a statement in the constitution, Clause in Article I, Section 8 of the Constitution that gives Congress the right to make all laws “Necessary and Proper”. Its interpretation has caused many debates regarding the bounds of Congress in passing laws that are not expressly covered in the Constitution. Out of all the options that are available the most likely to be created under the elastic clause is A) rules for approving foreign treaties.
<span>I hope it helps, Regards. </span></span>
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
