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emmainna [20.7K]
3 years ago
6

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected retur

n of 16 percent and a standard deviation of returns of 20 percent. The risk-free asset has an interest rate of 4 percent. Calculate the expected return and the standard deviation of the resulting portfolio. (2 2)
Business
1 answer:
zhuklara [117]3 years ago
4 0

Answer:

The answer is

2(16) - (4) =28%

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If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,
GrogVix [38]

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

  • inflation rate US = (1 + 0.03)⁵ = 1.159274
  • inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

5 0
3 years ago
A/An _______________ fails to meet customers’ minimal requirements, potentially costing you business, even when you perform well
amm1812

Answer:

The correct answer is letter "B": Order Qualifier.

Explanation:

An Order Qualifier represents the minimum features a good or service must meet so consumers can think about purchasing them. Variables that could fall into this category are price, convenience or the product's reputation. If the good or service accomplishes one of those characteristics and is of preference of the consumers, then the firm has an order winner.

5 0
3 years ago
Read 2 more answers
Nonprice competition refers to:
umka21 [38]

Answer: Option C

Explanation: Non price competition can be defined as the business strategy under which one entity tries to distinguish its commodity offered from another entity in the market with the help of advertising and promotion etc.

Non price competition is generally seen in the oligopoly market structure. The difference between two products in an oligopoly having non price competition is based on the design or workmanship of the manufacturer.

6 0
3 years ago
Lauer Corporation has provided the following information about one of its laptop computers: Date Transaction Number of Units Cos
Maru [420]

Answer:

Lauer Corporation

The Cost of Goods Sold using the LIFO cost flow assumption is:

$740,000 ($780,000 - $40,000)

Explanation:

Date Transaction             Number of Units    Cost per Unit   Total

1/1      Beginning Inventory     100                   $ 800              $80,000

5/5    Purchase                      200                   $ 900               180,000

8/10   Purchase                      300                 $ 1,000              300,000

10/15 Purchase                      200                  $ 1,100              220,000

Year Total                              800                                          $780,000

Year  Sales                            750                                         $ 740,000

Year  Ending Inventory          50                   $ 800               $40,000

b) The Cost of goods sold ($740,000) is determined by subtracting the ending inventory ($40,000) from the cost of goods available for sale ($780,000).   Other method of determining the cost of goods sold under the LIFO cost flow assumption would be to add up the individual costs of purchases to the beginning inventory and then subtract ending inventory.  The LIFO cost flow assumption assumes that items sold are from the latest inventory and not the earlier ones.

8 0
3 years ago
A share of stock with a beta of .78 now sells for $58. Investors expect the stock to pay a year-end dividend of $2. The T-bill r
algol13

Answer

The answer and procedures of the exercise are attached in the images below.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in two sheets with the formulas indications.  

3 0
3 years ago
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