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SOVA2 [1]
3 years ago
8

Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate

is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 23% Stock B 32% Stock C 45% Your client decides to invest in your risky portfolio with a proportion (y) of his investment budget with the rest in a T-bill (MMF) money market fund so that the overall portfolio will have an expected return of 9%. What is the proportion y
Business
1 answer:
Shtirlitz [24]3 years ago
4 0

Answer:

y = 50 %

Explanation:

As per the data given in the question,  computation are as follows:

Expected return = y × expected rate of return for portfolio + (1 - y) × rate of T-bills

By putting the value from the given data in the above formula, we get

0.09 = y×0.12 + (1 - y)×0.06

0.09 = 0.12y + 0.06 - 0.06y

0.03 = 0.06 y  

y = 0.50

= 50%

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The equal credit opportunity act (ecoa) makes it illegal for lenders to refuse credit to or otherwise discriminate against which
Debora [2.8K]

The Equal Credit Opportunity Act (ECOA) makes it illegal for lenders to refuse credit to or otherwise discriminate against a single person who receives public assistance.

The Equal Credit Opportunity Act, which is under the Consumer Credit Protection Act, makes sure that no borrowers are discriminated by lenders. When an applicant submits a request to know the reasons why their credit was denied, the creditors must provide them with it as stated in the Act.

8 0
3 years ago
A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups
Anastaziya [24]

Answer:

Divisional Product Structure

Explanation:

Divisional product structure functions in the manner that the business is centralized and then the resources are divided into various products depending on the needs of the product.

As the company which aims to produce more than one product and has diverse products, it can centralize the basic functions and then put specific consideration on the individual diverse products.

With this structure the organization can perform in each product segment with the increasing quality and generating greater revenue.

5 0
3 years ago
intext:"The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is"
Minchanka [31]

Answer:

A debit to Salaries Expense and a credit to the Salaries Payable Account.

Explanation:

This adjusting entry brings the salary expense account to its accrued balance in line with the accrual concept and matching principle of generally accepted accounting principles.  These state that expenses and revenues should not reflect only the cash basis but the accrual basis, whereby unpaid or prepaid expenses, deferred or unpaid revenues that relate to the accounting period are brought into consideration.

3 0
3 years ago
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead
kupik [55]

Answer:

Underapplied Manufacturing Overhead $23,000

Explanation:

Sawyer Manufacturing Corporation

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base

= $300,000 ÷ 52,000 direct labor hours

= 5.7 Approximately $6 per direct labor-hour

Overhead over or underapplied Actual MOH

= 365,000

Applied MOH = $6 x 57000 = $342,000

Underapplied Manufacturing Overhead = 365,000-342,000 = 23,000

Therefore The Corporation's applied manufacturing overhead cost for the year was $23,000

8 0
3 years ago
The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and produc
lesya692 [45]

Answer:

$11.1

Explanation:

We can calculate the factory overhead allocated to a unit using multiple department factory overhead rate methods with an allocation base of direct labor hours. In this method, we will divide the te total overhead cost in direct labor hours consumed in that department.

Solution

Direct Labor  Overhead  rate for Finishing = $550,000/500,000

Direct Labor  Overhead  rate for Finishing = $1.10  per hour

Direct Labor  Overhead rate for Production = $400,000/80,000

Direct Labor  Overhead rate for Production = $5

Overhead for DeskLamps = (Direct labor hours in Finishing x Direct Labor  Overhead  rate for Finishing + Direct Labor hours in Production x Direct Labor  Overhead rate for Production)

Overhead for DeskLamps= (1x$1.10 + 2x$5)

Overhead for DeskLamps= $11.1

3 0
3 years ago
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