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scZoUnD [109]
3 years ago
14

There are two ways to calculate the expected return of a​ portfolio: Either calculate the expected return using the value and di

vidend stream of the portfolio as a​ whole, or calculate the weighted average of the expected returns of the individual stocks that make up the portfolio. Which return is​ higher? ​(Select the best choice​ below.) A. The weighted average expected return of the individual stocks is higher because returns are concave. B. Impossible to​ tell, it depends on the portfolio. C. Neitherboth calculations give the same answer. D. The weighted average expected return of the individual stocks is higher because returns are convex.
Business
1 answer:
Arisa [49]3 years ago
8 0

Answer:

Correct Answer:

C. Neither, both calculations give the same answer.

Explanation:

In any given business calculation that is expected to arrive at a particular solution, the solution obtained would always be the same irrespective of the method adopted. <em>For the example, the case of expected return of a portfolio in a business, the calculation would definitely give the same answer when two methods are adopted.</em>

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Compare and Contrast Material and Substantive Law
topjm [15]

Answer:

Terms. Procedural law is the set of rules by which courts in the United States decide the outcomes of all criminal, civil, and administrative cases. Substantive law describes how people are expected to behave according to accepted social norms.

Hope this helped you compare & contrast

Explanation:

5 0
3 years ago
Which one of the following statements regarding disclosure is true?
dybincka [34]

Answer:

4

Explanation:

The death on property must be disclosed to buyers by stateagents or owners if the death has occurred within last three years but the manner of death is not requried to be disclosed unless asked by the buyer.

5 0
3 years ago
Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures wer
yan [13]

Answer: Option (C) is correct.

Explanation:

Given that,

Net cash provided by operating activities = $34

Income taxes = $12

Capital expenditures = $24

Cash dividends = $7

Free Cash Flow = Cash Provided by Operating Activities - Dividends - Capital Expenditure

                           = $34 - $7 - $24

                           = $3

Therefore, the company's free cash flow was $3.

3 0
3 years ago
Consider luxury weekend hotel packages in Las Vegas. When the price is $250, the quantity demanded is 2,000packages per week. Wh
konstantin123 [22]

Answer:

The elasticity is about 1.43, and an increase in the price will cause hotels' total revenue to decrease

Explanation:

The formula of the midpoint for the variation of the quantity is  \frac{Q2-Q1}{(Q2+Q1)/2} *100 and for the price is \frac{P2-P1}{(P2+P1)/2} *100. With the variation of the price and the quantity the elasticity formula is ΔQ/ΔP. Replacing the elasticity is -1.43

The price elasticity of the demand is bigger than 1, that means that the demand is elastic, every increase of the price will cause a bigger decrease of the quantity, the revenue will drop because the increase of the price do not compansete the decrease of the quantity.

6 0
3 years ago
Use the following information to answer this... Use the following information to answer this question. Windswept, Inc. 2010 Inco
prisoha [69]

Answer:

The Quick ratio: 0.86:1

Explanation:

The question is completed first as follows:

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 270 $ 300 Accounts payable $ 1,530 $ 1,485 Accounts rec. 1,080 980 Long-term debt 1,140 1,340 Inventory 1,930 1,755 Common stock $ 3,420 $ 3,370 Total $ 3,280 $ 3,035 Retained earnings 680 930 Net fixed assets 3,490 4,090 Total assets $ 6,770 $ 7,125 Total liab. & equity $ 6,770 $ 7,125 What is the quick ratio for 2010?

Solution:

The requirement is to use the given information to calculate Windswept Inc's Quick ratio for 2010.

Quick ratio: this represents the ability of an organisation's short term liquidity to cover and cater for its short term obligation. Basically, it looks at the ratio of the current assets of an organisation (those that can be quickly converted to cash) to meet the current liabilities.

The formula for quick ratio= Current Assets - Inventory / Current Liabilities

Windswept's quick ration = Cash + Accounts receivable / Accounts Payable (all for 2010)

= $300 + 980 / $1, 485

= $1,280/$1,485

= 0.86:1

This means that the current asset of the company can only cover its current obligations up to about 86%. This is the quick ratio.

5 0
3 years ago
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