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Sedaia [141]
3 years ago
11

You own a portfolio that has $2,800 invested in Stock A and $3,250 invested in Stock B. The expected returns on these stocks are

14.7 percent and 9.3 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
abruzzese [7]3 years ago
3 0

Answer:expected return on the portfolio=11.79%

Explanation:

Calculation of the expected return on the portfolio:

total weight =  $2,800  +$3,250 =$6,050

Portfolio expected return = weight of stock A*expected return on stock A + weight of stock B*expected return on stock B

= 2800/ 6,050 x 14.7%  + 3250 /6050 x 9.3%

0.4628 x 0.147 + 0.5372 x 0.093=

0.06803 + 0.04996

=0.1179 x 100

Portfolio expected return= 11.79% 0r rounded to 11.80%

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Which of the following fees would likely be the highest?
nlexa [21]
The values for each of the fee depends primarily on which bank are the transactions being made. However, taking for example Bank X, the overdraft fee is $35. The account transfer fee is fairly lower with values from $4.95. Monthly service fee also ranges from $10 or higher. Lastly, for ATM fee the amount only ranges from $2.00. 

The answer to this item is therefore the firs choice.
5 0
3 years ago
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com
Volgvan

Answer:

13%

Explanation:

The accounting rate of return (ARR) of an investment project is the accounting  profit (usually before interest and tax) expressed as a percentage of the capital  invested.The essential feature of ARR is that it is based on accounting profits, and the  accounting value of assets employed.

Annual Net income per year=20,000

Capital employed= (Initial cost of machinery+residual value)/2

Capital employed=(280,000+30,000)/2=155,000

Project A Accounting rate of return=Annual net income per year/Capital employed

Project A Accounting rate of return=20,000/155000

                                                          =13%

3 0
2 years ago
Your child is planning attend summer camp for 3 months, starting 12 months from now. The cost for camp is $2,676 per month, each
Vinil7 [7]

Answer:

Monthly deposit= $2,625.16

Explanation:

Giving the following information:

Total cost= 2,676*3= $8,028

Monthly interest rate0 0.023/12= 0.00192

<u>First, we need to calculate the nominal value required at the end of the third month:</u>

PV= FV / (1 + i)^n

FV= 8,028

i= 0.00192

n= 9 months

PV= 8,028 / (1.00192^9)

PV= $7,890.6

<u>Now, the monthly investment to reach $7,890.6:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (7,890.6*0.00192) / [(1.00192^3) - 1]

A= $2,625.16

5 0
2 years ago
Humes Corporation makes a range of products. The company's predetermined overhead rate is $20 per direct labor-hour, which was c
hichkok12 [17]

Answer:

$7,400

Explanation:

The impact on the company's overall profit is shown below:-

<u>Particulars                Amount </u>

Sales                          $50,320  (740 × $68)

Less : Variable cost

Direct material          $30,340  (740 × $41)

Direct Labor               $10,360  (740 × $14)

Variable Manufacturing

overhead

($51,000 ÷ 17,000)        $2,220 (740 × $3)

= 3

company's overall profit $7,400

To reach the company's overall profit we simply deduct the Direct material, direct labor and variable manufacturing overhead from sales.

3 0
3 years ago
Small percentage changes in an amount from a company's financial statement may still represent large dollar amounts; therefore,
Lera25 [3.4K]

Answer: You are trying to find out if the statement is true or false? It is FALSE.

Explanation: Analysts should be concerned with the material movements in the company's financial statements. Although as stated in the question, small changes could amount to material movement but that applies in situations where there is a huge outflow but at the same time, there is similar inflow, so the net effect is negligible on a particular financial statements line item. This instance is not relevant to financial analysts but only the concern of internal control and or internal audit.

Financial analysts are interested in what the key drivers of the financial statements are. These drivers in most cases are an avenue to explain what has transpired in the financials between the current period and the preceding one by way of writing a commentary and providing a succinct and holistic explanation of the financial statements.

It would be time consuming and too operational if analysts are concerned with every percentage movement in the financial statements.

4 0
3 years ago
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