Answer:
Portfolio beta =0.7467
Explanation:
Weight of each asset = 100% / 3 = 33.33%
Portfolio beta = Respective beta * Respective weight
Portfolio beta = (1/3*0.91)+((1/3*1.33)+(1/3*0)
Portfolio beta = 0.746666666
Portfolio beta = 0.7467
Hence, the beta of the portfolio 0.7467.
Answer:
(a) $50,980.35
(b) $5,129.90
(c) $2,400
(d) $50,980.35
(e) $5,129.90
(f) $2,400
Explanation:
A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.
Formula for Future value of annuity is
F = P * ([1 + I]^N - 1 )/I
P =Payment amount
I = interest rate
N = Number of periods
(a) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(b) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(c) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
(d) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(e) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(f) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
Answer:
Please find attached solution.
Explanation:
Employee A makes $1,200 more than Employee B for sales of $100,000.
The earnings of Employee A are: = Commission rate x Sales
= 6% x 100,000
= $6,000
The earnings of employee B are = Commission on first $80,000 + Commission on anything above $80,000
= (4% x 80,000) + (8% x (100,000 - 80,000)
= 3,200 + (8% x 20,000)
= $4,800
The difference is: = Employee A commission - Employee B commission
= 6,000 - 4,800
= $1,200
In conclusion, Employee A makes $1,200 more than Employee B for sales of $100,000.
Commission Rate :
The commission rate is the percentage or fixed payment associated with a certain amount of sale. For example, a commission could be 6% of sales, or $30 for each sale.
Learn more about Commission rate :
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