1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Murljashka [212]
3 years ago
11

Consider a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio B has a beta of 0.8 and an

expected return of 12%. The risk-free rate of return is 6%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio __________ and a long position in portfolio _______.
Business
1 answer:
nirvana33 [79]3 years ago
4 0

Answer:

B, A

Explanation:

A: 16% = 1.0F + 6%; F = 10%; B: 12% = 0.8F + 6%: F = 7.5%; thus, short B and take a long position in A.

You might be interested in
Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built
iVinArrow [24]

Answer:

A printer is a device that accepts text and graphic output from a computer and transfers the information to paper, usually to standard size sheets of paper. Printers vary in size, sophistication, speed, and cost. In general, more expensive printers are used for higher-resolution color printing.

Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built-in flash memory card readers, wireless connectivity, and faster speed.  

The Six important printer qualities are:

  1. Color: It is important for users who need to print pages for presentations or maps, photos and other pages where color is part of the information. Color printers can also be set to print only in black-and-white. Color printers are more expensive to operate since they use two ink cartridges (one color and one black ink, toner) that need to be replaced after a certain number of pages. Users who don't have a specific need for color and who print a lot of pages will find a black-and-white printer cheaper to operate.  
  2. Resolution: Printer resolution (the sharpness of text and images on paper) is usually measured in dots per inch (dpi). Most inexpensive printers provide sufficient resolution for most purposes at 600 dpi.
  3. Speed: If you do much printing, the speed of the printer becomes important. Inexpensive printers print only about 3 to 6 sheets per minute. Color printing is slower. More expensive printers are much faster.
  4. Memory: Most printers come with a small amount of memory (for example, one megabyte) that can be expanded by the user. Having more than the minimum amount of memory is helpful and faster when printing out pages with large images or tables with lines around them (which the printer treats as a large image).
  5. Wireless connectivity : Specialized printer nowadays have wireless connectivity which allows user to communicate with the machine without physical operation. Like one can just give command to the printer to print their projects using their mobile phone while sitting on the couch. This feature might add extra bucks to the bill but its worth it.
  6. Printer languages The commands from the computer to the printer to tell the printer how to format the document being printed. These commands manage font size, graphics, compression of data sent to the printer, color, etc. The two most popular printer languages are Postscript and Printer Control Language.

Conclusively the best printer will be the one which will provide pleasant color contrast, good resolution, enough memory, wireless connectivity and have better language settings.

3 0
2 years ago
Happy Maids cleans commercial buildings. In March, Happy Maids started and completed two jobs, Job 1000 and Job 1001. The job co
vodomira [7]

Answer:

C :Job 1000, $1,860; Job 1001, $3,100

Explanation:

The computation of the total cost is shown below:

For Job 1000:

= Direct materials + Direct labor hours × wage rate per hour × Direct labor hours × overhead rate per hour

= $1,200 + 30 × $15 + 30 × $7

= $1,200 + $450 + $210

= $1,860

For Job 1001:

= Direct materials + Direct labor hours × wage rate per hour × Direct labor hours × overhead rate per hour

= $2,000 + 50 × $15 + 50 × $7

= $2,000 + $750 + $350

= $3,100

5 0
3 years ago
Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
kipiarov [429]

Answer:

Yes

Explanation:

The 0.01 percent of the deviation plus the 0.01 percent of the sales average is not enough to get to the $6,300 daily, which means that the factor of the increase sales is the advertising campaign.

4 0
3 years ago
Yellow Co. spent $12,000,000 during the current year developing its new software package. Of this amount, $4,000,000 was spent b
earnstyle [38]

Answer:

devopment expense                                   4,000,000

software package depreicaiton expense 2,000,000

training employees expense                     <u>      50,000</u>

Total expenses                                            6,050,000

Explanation:

the cost before the knowledge of future benefit will come for the development of the software  is treated as expense. The reasoning behind this is the potential uncertainty about the furture at this time. The company didn't know about the likelihood of future benefits.

The toher 8,000,000 million will be amortize over a 4-year period:

8,000,000 / 4 = 2,000,000 depreciation expense

The training wil be considered expense for the period.

4 0
3 years ago
Mr. Bailey would like to gift $515,000 (FMV) of appreciated property (basis $200,000) to his son. Mr. Bailey doesn't want to use
Oliga [24]

Answer:

He should set a grantor retained annuity trust (GRAT).

Explanation:

Mr. Bailey would be the grantor that transfers the asset into the GRAT, but retains the right to receive annuity payments for a number of years. The IRS has set a minimum annuity corresponding to the Section 7520 rate, during the last two years the rate has varied from 2-3%. When the trust expires (pays all the annuities), the beneficiary gets the asset tax free.

Since the grantor is giving up an asset but in exchange is receiving an annuity form it, there is no applicable gift tax, it is called a zeroed-out GRAT.

This type of grant makes sense only if the grantor believes that the future value of the asset will be higher than the current value, since the annuity is based on the current value. In this case, Mr. Bailey would receive payments based on a $200,000 value, but the property's fair market value is already higher and should increase as time passes.

7 0
3 years ago
Other questions:
  • Following the birth of his first child, Mike Simpson, a software designer for Microsoft, wished to spend more time with his fami
    5·1 answer
  • In the context of doing business in Asia, what is meant by the phrase "the contract is in the relationship, not on the paper"?
    13·2 answers
  • On Januaryâ 1, 2019, Always Corporation issues $ 2,800,000â, 5-âyear, 10â% bonds for $ 2,710,000. Interest is paid semiannually
    13·1 answer
  • to startup a small part time business assume your only cost are paying $100 for equipment and paying each employee you hire $ 20
    11·1 answer
  • Name and describe the type of economy a country will have when the central government makes all the economic decisions
    13·1 answer
  • You plan to go to Asia to visit friends in three years. The trip is expected to cost a total of $10,000 at that time. Your paren
    9·1 answer
  • An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts increasing by $100 per year through y
    6·1 answer
  • Liabilities normally carry a _______ balance and are shown in the ______________. Debit; Balance sheet Debit; Income statement D
    10·1 answer
  • Bedrock Company reported a December 31 ending inventory balance of $416,000. The following additional information is also availa
    6·1 answer
  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!