To resolve a problem or select between multiple options
Answer:
The correct answer is option (C).
Explanation:
According to the scenario, the given data are as follows:
Stock M = $18,200
Expected Return on Stock M = 10.40%
Stock N = $30,900
Expected return on Stock N = 14.30%
So, we can calculate the expected return on portfolio by using the following formula:
Expected return = Respective return (Stock M) × Respective weights (stock M) + Respective return (Stock N) × Respective weights (stock N)
Here, Total investment= ($18,200 + $30,900) = $49,100
So, by putting the value
Expected Return = (18200/49100 × 10.4) + (30900/49100 × 14.30)
= 12.85% (Approx).
Hence, the expected return on the portfolio is 12.85%.
Answer:
the actual worth today is $5,124,150.29
Explanation:
The computation of the actual worth today is as follows:
= (Year end annual payments) ÷ (rate of interest) × (1 - (1 + rate of interest)^-time period
= ($333,333.33) ÷0.05 × (1 - (1 + 0.05)^-30
= $5,124,150.29
hence, the actual worth today is $5,124,150.29
The above formula should be applied
The correct option is - B (16, 22)
Explanation:
<u>Given:
</u>
Demand function = P = -Q +38
Supply function = P = Q – 6
<u>In order to find the equilibrium, the demand function must be equal to the supply function.
</u>
Thus, putting the demand function equal to the supply function , we get,
Q – 6 = -Q + 38
Solving the above equations, Q = 22
Now, putting the value of Q in demand function in order to find out the value of P,
P = -22 + 38
P = 16
Thus, Option B is correct (16, 22)
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