Answer (A):
Need more data to select the better adviser
<u>Explanation: </u>
Adviser A averaged 19% return on the investment which is more than that of Adviser B who averaged 16% return on investment. However, adviser A has a beta of 1.5 which is also greater than that of Adviser B who has a beta of 1. This means that adviser A made a more riskier investment and hence a higher average return on investment. We need more data to tell which adviser performed better in relation to each other.
Answer (B):
Investment Adviser B
<u>Explanation:</u>
= T-bill rate = 6%
= Market return = 14%
= Market risk premium = 14% - 6% = 8%
= Average Return by Adviser A =19%
= Beta of Adviser A = 1.5
= Average Return by Adviser B =16%
= Beta of Adviser B = 1
CAPM Equation is 
<u>For Adviser A</u>
= 6 + 1.5 (14 - 6) = 18%
The expected average return for the investment is 18% which means that Adviser A over performed the market by 1 %
<u>For Adviser B</u>
= 6 + 1 (14 - 6) = 14%
The expected average return for the investment is 14% which means that the Adviser B over performed the market by 2 %
Clearly, Adviser B performed better than Adviser A.
Answer (C):
Adviser B
<u>Explanation:</u>
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In this part, the
and 
All else remains the same
We make similar calculation as in part B
The answer is A. A thief pretended to be Margaret and used her personal information to access a bank account.
The thief had gain access to her personal information and used it to fraudly access another bank account. It was used to gain credibility by impersonation. It is also called as social manipulation to let people believe that you are that person.
Answer:
$150,876.91
Explanation:
To calculate, the present value of an ordinary annuity formula is used as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)
Where;
PV = Present value of the payments =?
P = yearly payment = $30,000
r = interest rate = 11% = 0.11
n = number of years = 5
Substitute the values into equation (1) to have:
PV = $30,000 × [{1 - [1 ÷ (1+0.11)]^5} ÷ 0.11] = $110,876.91
Amount to record = $40,000 + $110,876.91 = $150,876.91
Answer:
$2,500
Explanation:
The computation of the amount of bonus to the old partner is shown below:
But before that first we have to find out the contributed capital which is
= $50,000 + $60,000 + $40,000
= $150,000
Now the interest rate is 25%
So, the capital after considering the interest rate is
= $150,000 × 25%
= $37,500
And, the new partner invested amount is $40,000
So, the amount of the bonus is
= $40,000 - $375,00
= $2,500
<span>Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as CONVENTIONAL LOANS. It is a type of loan that has a fixed rate and terms and is usually associated with mortgage. Any government agency (i.e. Federal Housing Administration, Department of Veterans Affairs) does not have any involvement in conventional loans.</span>