Sarah - cord source funding
Daphne - government loans because SBA is a government agency.
Pat - venture capital
Albert - asset backed lending because he is using collateral (assets) to secure his loan.
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%
Answer:
A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business.
Answer:
First-mover
Second-mover
Explanation:
A first mover is a provider of product, that achieves a market advantage by being the first type of product to be marketed. Generally, being gets the first firm in the market to get the advantage of the strong market and customer satisfaction.
The "second mover's advantage" is the value of joining others into a business or imitating an old product that a new innovative company gets.
In this case VisiCalc is a First-mover and Microsoft is a Second-mover.
Answer:
Interest= $90
Explanation:
Giving the following information:
Initial investment= $3,000
i= 3%
Number of periods= 1
<u>First, we need to calculate the future value, using the following formula:</u>
FV= PV*(1+i)^n
FV= 3,000*1.03= $3,090
<u>Now, the interest earned:</u>
Interest= 3,090 - 3,000
Interest= $90
