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
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>

You might be interested in
What is globalization?
VladimirAG [237]

Globalization is the increase in the flow of goods, services, capital, people, and ideas across international borders. Globalization changes the way nations, businesses and people interact. Specifically, it changes the nature of economic activity among nations, expanding trade, opening global supply chains and providing access to natural resources and labor markets.

5 0
2 years ago
Read 2 more answers
Meyer &amp; Smith is a full-service technology company. They provide equipment, installation services as well as training. Custo
Iteru [2.4K]

Answer:

d. $90,000, $60,000, $30,000 respectively.

Explanation:

The computation of price allocated is shown below:-

Ratio of values $90,000 : $60,000 : $30,000

= 3 : 2 : 1

Total cost = $180,000

Equipment = $180,000 × 3 ÷ 6

= $90,000

Installation= $180,000 × 2 ÷ 6

= $60,000

Training = $180,000 × 1 ÷ 6

= $30,000

Therefore the Equipment, Installation, Training is $90,000, $60,000, $30,000 respectively.

7 0
3 years ago
Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to gr
Tpy6a [65]

The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds <span>by </span>purchasing<span> new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:</span> 

Ke<span> = (DIV 1 / Po) + g</span> 

Ke<span> = cost of external equity</span> 

DIV 1 = dividend to be paid next year 

Po = market price of share 

g = growth rate 

In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%. 

<span>Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.</span>

8 0
3 years ago
A scale used to weigh produce at a market has markings every 0.1 kg. which measurement for the mass of a dozen apples is correct
AleksAgata [21]

A scale used to weigh produce at a market has markings every<u> 0.1 kg</u>

Measurement for the mass of a dozen apples is correctly reported for this scale<u> </u><u>1.87 </u><u>kg</u>

<u />

<h3>What is produced in the market?</h3>

Farm is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc.

<h3>Why is it named produce?</h3>

Produce here refers to “fresh fruits and vegetables”. It's the noun understanding of that word, not the verb, and so its stress falls on the first syllable. Therefore the vegetables aisle is the place where such items are found.

To learn more about Measurement, refer

brainly.com/question/777464

#SPJ4

6 0
2 years ago
The Analytical Hierarchy Process is used to decide among three projects that we'll call A, B, and C. The total score for project
Ber [7]

Answer:The analysis must be incorrect because the total score should sum up to 1

Explanation: Analytical Hierarchy process is a mathematical model used in determining the viability of a process from sets of process using set criterion ,these criteria are selected such that it determine the like hood of success of the project,the number written above represent the weight of each of the process ,the overall weight of the criterion is always when summed up.

The weight represents the likelihood of the events happening or being successful.

6 0
3 years ago
Other questions:
  • Assume a nation’s economy is operating above full employment. if business taxes increase, how will output, employment, and price
    5·1 answer
  • Which of the following is not a strength of sensitivity analysis?
    6·1 answer
  • All but one of the following is included in partnership winding up activities: a. Signing new contracts for the partnership. b.
    8·1 answer
  • Multiple Choice Question 64 Concord Company had the following department information about physical units and percentage of comp
    11·1 answer
  • The circular flow model examines interactions between which sectors of the economy? Check all that apply.
    7·2 answers
  • 1. Use a financial calculator or computer software program to answer the following questions:
    7·1 answer
  • External agencies and government bodies publish safety ratings for cars to help consumers alleviate _____ risk. multiple choice
    11·1 answer
  • During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost o
    12·1 answer
  • The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and
    9·1 answer
  • Trish is trying to shift her company in a profound way to increase its efficiency and effectiveness. This is called organization
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!