Linda Davis is a divorced parent who maintains a home for a 13 year old daughter. Linda earns $65,000 per year from her job. She
1 answer:
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- The expected return = = 12.84 %.
- The standard deviation = 22.8 %.
<u>Explanation</u>:
On the client's portfolio (total investment = 120 K + 80 K = 200 K,
- The expected return
= (12.4 %risk premium + 5.4 %risk free return) (120 K / 200 K) + 5.4 %
(80 K / 200 K)
= 17.8 % 0.6 + 5.4 %
0.4
= 12.84 %.
-
The standard deviation would be = 38 %
0.6 + 0%
= 22.8 %.
Answer:
2 year yield 4 years from now 37.99%
Explanation:
given data
Interest rates r1 = 6.05% = 0.0605
Interest rates r2 = 7.6% = 0.0760
to find out
2 year yielding 4 years from now
solution
we find here 2 year securities will be yielding 4 years from now by as
2 year yield 4 years from now = - 1
put here value we get
2 year yield 4 years from now = - 1
2 year yield 4 years from now = 1.379915 - 1
2 year yield 4 years from now = .379915
so 2 year yield 4 years from now 37.99%
Answer:
D. $100
Explanation:
Given: William install 7 system per day at the cost of $300.
William install 8 system per day at the total cost of $400.
Remember, If the marginal cost curve is upward-sloping, this means that as output increase, marginal costs will also increase.
Marginal cost is an additional cost incurred in producing additional unit of output.
Now, finding additional payment that eighth customer has to pay.
Change in marginal cost=
⇒ Change in marginal cost=
∴ Change in marginal cost=
Hence, there is an increase in marginal cost by $100 as output increases, therefore, William will install eight sound systems per day only if the eighth customer is willing to pay at least $100.