Answer:
Delgado will classify the stock on his balance sheet as a long term investment.
Explanation:
A long term investment is an asset owned by a company and which it hopes to keep for more then a year.
Long term investments are recorded on the asset side of balance sheets and they can be in form of land, bonds, stocks, machinery, and so on.
The opposite of long term investment is short term investment where an asset is kept for less than a year.
What grade are you in? I don't understand the problem
Based on the inflation rate and the yield to maturity, the real rate of return on the bonds will be 5.23%.
<h3>What is the real rate of return?</h3>
This can be found by the formula:
= (( 1 + nominal Return) / ( 1 + Inflation rate)) - 1
Solving gives:
= ( ( 1 + 8.0%) / ( 1 + 8.90%)) - 1
= 1.0523 - 1
= 5.23%
Find out more on real rates of return at brainly.com/question/1698368.
That is an example of overtreatment.
Overtreatment is the term that is used to describe medical professionals who give unecessary health care in order to obtan higher profit compared to the necessary treatment. According to surveys, around 40% of doctors conducted this practice every year.
The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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