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3 years ago

Combination Fraction of Portfolio in Diversified Stocks Average Annual Return Standard Deviation of Portfolio Return (Risk)

Business

1 answer:

amm18123 years ago

3 0

Answer:

a. Sell some of her bonds and use the proceeds to purchase stocks.

Explanation:

Debt or bonds is less risky so it generates lower returns. Stock or equity comprises high risk so it offers high returns to its investors. If Rosa wants to increase her returns from 4.5% to 9.5% then he should sell some of its bonds and invest the proceeds into stocks. The lower returns on the bonds will be replaced by high returns on the stocks.

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Which of the following customer-service strategies focuses on meeting industry standards in key operational areas like product q

AlladinOne [14]

Answer:

a. customer service strategy

Explanation:

Based on the information provided within the question it can be said that this is all part of the customer service strategy. This is a thought out plan that is implemented in order to handle all customer interactions and provide the best customer experience that is consistent and up to par with the expectations that the customers want. Thus creating a loyal customer base.

7 0

3 years ago

Suppose a project is subject to the following risk events (each with a given probability of occurring and a cost associated with

gulaghasi [49]

Answer :

Correct answer is Option (e)

Explanation :

As per the data given in the question,

Option (e) is the correct answer, which indicates that Event 2nd should probably get the most attention and Event 3rd should probably get the least.

The reason behind it is Event 2nd has the highest probability of occurrence at 0.6 and cost associated with it is also the greatest at $54,000. Event 3rd has the least probability of occurrence at 0.1 and the cost associated with its occurrence is also the smallest at $12,000.Therefore this Event should be given least importance.

5 0

3 years ago

In an efficient market, prices appear to move randomly becauseA) investors do not process new information correctly.B) only new

Gennadij [26K]

Answer:

Correct answer is B.

Explanation:

B is correct. In the Strong-form efficient market hypothesis, all public and private information is reflected in prices and it is impossible for anyone to outperform the market. Only new information affects stock prices, but then, this new information is processed correctly and reflected in the price of an asset so fast before anyone can act on it. As a result, the price action becomes totally unpredictable and prices appear to move randomly.

6 0

3 years ago

Great Subs Inc., a regional sandwich chain, is considering purchasing a smaller chain, Eastern Pizza, which is currently finance

tatuchka [14]

Answer:

WACC 13.85600%

Explanation:

First we calculate Eastern Pizza CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.08

market rate = 0.12

premium market = (market rate - risk free) 0.04

beta(non diversifiable risk) = 2

$Ke= 0.08 + 2 (0.04)$

Ke 0.16000

Then we solve for WACC

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.16000

Equity weight 0.8

Kd 0.08

Debt Weight 0.2

t 0.34

$WACC = 0.16(0.8) + 0.08(1-0.34)(0.2)$

WACC 13.85600%

The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.

3 0

3 years ago

At what value should the land be recorded in clementine repair service records?

adell [148]

Answer: $369,500

Explanation:

The Cost concept of accounting calls for the recording of Assets at their cost.

Clementine Repair services offered to buy the land at $350,500 when it was priced at $388,500.

The seller countered with $369,500 and Clementine accepted this.

This means that Clementine bought the land for $369,500 which makes it the cost price.

They should therefore record it at $369,500.

6 0

3 years ago