A savings account is useful for all of the following purposes EXCEPT…

describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier. A

kondaur [170]

Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.

Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.

The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.

Explanation:

7 0

3 years ago

Will give brainlyest!!!!!! PLEASE HELP!!! :) 1.suppose a firm has sales in cahs. when does the inflow of cash occur? 2. A cash b

Diano4ka-milaya [45]

#1 is at the time of the sale. 2. is future cash flows. Im taking the same quiz and cant figure out any of the other answers :(

3 0

3 years ago

Que es el asiento contable

Blababa [14]

Answer:

En contabilidad, se denomina asiento contable al conjunto de anotaciones o apuntes contables que se hacen en el libro diario de contabilidad, que se realizan con la finalidad de registrar un hecho económico que provoca una modificación cuantitativa o cualitativa en la composición del patrimonio de una empresa.

8 0

3 years ago

A professor of statistics claimed that the average amount of money a typical college

Lilit [14]

Answer:

We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.

Explanation:

A professor of statistics claimed that the average amount of money a typical college student spends per day during social distancing at home is over $70.

Based upon previous research, the population standard deviation is estimated to be $17.32.

The professor surveys 35 students and finds that the mean spending is $67.57.

Is there evidence that the average amount spent by students is less than $70?

For the given problem the Null hypotheses is that the average amount of money a typical college student spends per day is less than $70.

$H_0= \mu$

For the given problem the Alternate hypotheses is that the average amount of money a typical college student spends per day is over $70.

$H_1= \mu >70$

The test statistic is given by

$z = \frac{\bar{X}-\mu}{\frac{\sigma}{\sqrt{n} } }$

Where X_bar is the sample mean spending that is $67.57, μ is the average population spending that is $70, σ is the standard deviation that is 17.32 and n is the sample size that is 35.

$z = \frac{67.57-70}{\frac{17.32}{\sqrt{35} } }\\\\z = \frac{-2.43}{ 2.927}\\\\z = -0.83$

The p-value corresponding to the z-score of -0.83 at significance level 0.10 is found to be

p-value = 0.2036

Since 0.2036 > 0.10

We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.

6 0

3 years ago

Maren received 12 NQOs (each option gives her the right to purchase 13 shares of stock for $10 per share) at the time she starte

Marat540 [252]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

8 0

3 years ago