B. That is duplicated reach
Answer:
Expected return of MSFT (ERMSFT) = 12%
Expected return of AAPL (ERAAPL) = 24%
Weight of MSFT (WMSFT) = 50% = 0.5
Weight of AAPL (WAAPL) = 50% = 0.5
ER(P) = ERMSFT(WMSFT) + ERAAPL(WAAPL)
ER(P) = 12(0.5) + 24(0.5)
ER(P) = 6 + 12
ER(P) = 18%
Explanation:
The expected return on the portfolio is expected return on MSFT multiplied by weight of MSFT plus the expected return on AAPL multiplied by weight of AAPL. Weight is the percentage of funds invested in each security, which is 50% (equal weight).
I would say D but I'm not completely sure. Hope I helped a little bit.
Answer:
C. $5,560.
Explanation:
Ace Co. has sold King Co. at 8% rate, we will use this rate annuity which is 3.992 to find Present value of payments by King Co on this note.
Present value of payment = $20,000 / 3.992
PV = $5,010.
Total payments = $5,010 * 5 years = $25,050
Present value of note = $5010 * 3.890 = $19488.9
Total revenue earned by King Co. = $25,050 - $19,489
Total revenue earned by King Co. = $5,560.