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valkas [14]
2 years ago
14

A moderately​ risk-averse investor has 50 percent of her portfolio invested in stocks and 50 percent in​ risk-free Treasury bill

s. Show how each of the following events will affect the​ investor's budget line and the proportion of stocks in her​ portfolio: The standard deviation of the return on the stock market​ increases, but the expected return on the stock market remains the same. The budget line will ▼ and the slope will ▼
Business
1 answer:
Cloud [144]2 years ago
6 0

Answer:

increases and decreases

Explanation:

The budget line will become flat and the slope will decrease. The proportion of stocks in the portfolio will fall.

The equation for the budget line is given by,

Rp=((Rm-Rf)/SDm)*SDp + Rj

where Rp is the expected return on the portfolio, Rm is the expected return from investing in the stock market, Rf is the risk-free return on Treasury bills, SDm is the standard deviation of the return from investing in the stock market, and SDp is the standard deviation of the return on the portfolio.

So when the standard deviation of the return on the stock market increases, the slope of the budget line decreases making the budget line to become flatter. The budget line’s intercept stays the same as Rf does not change. As stocks have become riskier without a compensating increase in expected return, the proportion of stocks in the investor’s portfolio will fall.

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In appellate procedures, each party files a(n) _____ that contains a short description of a case, a factual summary, legal point
Snezhnost [94]

Answer:

The correct answer is letter "C": brief.

Explanation:

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8 0
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A company can have many different levels of measuring KPIs. What types of KPIs can be measured besides company-level, campaign-l
Contact [7]

The types of KPIs that can be measured besides company-level, campaign-level, department-level, and team-level KPIs is the marketing tactic-level KPIs.

<h3>What is key performance indicator?</h3>

It should be noted that KPI stands for key performance indicator. This is a quantifiable measure of performance over time for a specific objective.

In this case, KPIs provide targets for teams to shoot for, milestones to gauge progress, as well as insights that help people across the organization make better decisions.

A key performance indicator is a type of performance measurement. It should be noted that KPIs evaluate the success of an organization or of a particular activity in which it engages.

The Key Performance Indicators include:

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In conclusion, the correct option is marketing tactic-level KPIs.

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3 0
2 years ago
Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of t
liraira [26]

Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.

Opportunity costs are the possible advantages which any person or  investor  or any company forgoes while deciding between the  two options.

Opportunity costs are invisible in nature. An opportunity cost is simply by definition is the difference between the expected returns of each option and this is also  the formula for doing so.

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4 0
1 year ago
A proposed new project has projected sales of $175,000, costs of $93,000, and depreciation of $24,800. The tax rate is 23 percen
allochka39001 [22]

Answer and Explanation:

Sales                            = $175,000

Less: Cost                    = $93,000

Gross Profit                  = $82,000

Less: Depreciation       = $24,800

EBT                                = $57,200

Less: Tax [email protected]%    = $13,156

EAT                                 = $44,044

a). OCF = EBIT + Depreciation - Taxes

             = $57,200 + $24,800 - $13,156

             = $68,844

b). OCF = [(sales - costs - Depreciation) * (1 - T)] + Depreciation

             = [($175,000 - $93,000 - $24,800) * (1 - 0.23)] + $24,800

             = $68,844

c). OCF = [(sales - costs) * (1 - T)] + [Depreciation * T]

             = [($175,000 - $93,000) * (1 - 0.23)] + [$24,800 * 0.23]

             =  $68,844

d). OCF = Net income + depreciation

             = $44,044 + $24,800

             = $68,844

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