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4 years ago

When should you open a credit card account

1 answer:

3 0

Never because credit cards only get you into debt, if you want a plastic way to buy things get a debit card so that you're buying things with money you actually have

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Assume that a new law is passed which restricts investors to holding only one asset. A risk-averse investor is considering two p

gayaneshka [121]

Answer:

Explanation:

Given the various probabilities (P) and returns (R) for Asset X and Asset Y, their expected return is computed as follows.

Asset X = $Summation(P_{r} *R_{x} )$

= (0.1*-3%) + (0.1*2%) + (0.25*5%) + (0.25*8%) + (0.3*10%)

Expected return (Asset X) = 6.15%

Asset Y = $Summation(P_{r} *R_{y} )$

= (0.05*-3%) + (0.1*2%) + (0.3*5%) + (0.3*8%) + (0.25*10%)

Expected return (Asset Y) = 6.45%.

Due to its higher expected return, Asset Y should be preferred.

The answer is option C because it contained a statement that Asset Y has a higher expected return.

Option (B) is wrong because we are not certain if Asset Y has a lower beta. We were not given any information to compute the beta.

Options (A), (D) and (E) are wrong because they did not specify Asset Y has the preferred asset.

5 0

4 years ago

A firm has an equity beta of 1.2, the risk-free rate is 3.4 percent, the market return is 15.7 percent, and the pretax cost of d

Alik [6]

Answer:

0.82

Explanation:

Calculation to determine the firm's asset beta

Using this formula

Firm's asset beta=Equity beta/(1+/D/E)

Let plug in the formula

Firm's asset beta=1.2/(1+0.47)

Firm's asset beta=1.2/1.47

Firm's asset beta=0.816

Firm's asset beta=0.82 (Approximately)

Therefore the firm's asset beta is 0.82

5 0

3 years ago

Andrew is a soybean farmer. he has a contract with a cooperative company called big beans, inc. every year big beans agrees to b

TiliK225 [7]

When it(soybeans) are planted

5 0

4 years ago

On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on Decembe

Genrish500 [490]

Answer:

The journal entry to record issuance of the bond would be:

Debit : Cash $382,942.

Credit : Bonds Payable $382,942.

Explanation:

At Issuance of Bonds, we recognize the Cash Asset and the Liability Bond Payable at the Issue Price of the Bond instead of Face Value.

The Issue Price is also known as the Present Value or Current Price of the Bond and for this question this was given as $382,942.

4 0

3 years ago

Torque roz, an automobile company, uses a unique tire design on its vehicles. a rival company was found copying the exact design

Kitty [74]

Torque toz's unique tire design is a registered trademark

5 0

3 years ago