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3 years ago

What is the expected return of a portfolio with 75% in asset A and 25% in Asset B?

Business

1 answer:

kifflom [539]3 years ago

6 0

Answer: 3.5%

Explanation:

Expected return if there is a Boom:

= (0.75 * 0.15) + (0.25 * 0.05)

= 0.1250

Expected return if things go Bust:

= (0.75 * -0.05) + (0.25 * 0.05)

= -0.025

Expected return of Portfolio = ∑(Probability of market state * expected return of market state)

= (0.4 * 0.1250) + (0.6 * -0.025)

= 3.5%

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The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte

11111nata11111 [884]

Answer: $135

Explanation:

First find the future value of the proceeds.

= 10,000 * (1 + 5%)⁷

= $14,071

The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.

Convert the interest rate into monthly figure:

= 3%/12

= 0.25%

Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)

14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)

14,071 = Annuity * 103.82

Annuity = 14,071 / 103.82

= $135.53

= $135

5 0

3 years ago

To be useful for decision making, information should possess the fundamental qualities of relevance and.

Nitella [24]

To be useful for decision making, information should possess the fundamental qualities of relevance and <u>Faithful representation</u>.

<h3>What is faithful representation?</h3>

Faithful representation can be defined as the financial accounting concept that stated a company financial position which they present should be correct with what the company has as their financial statement.

It is paramount that a company a financial statement is accurate to what they present in the financial statement and should not be compromise.

Therefore To be useful for decision making, information should possess the fundamental qualities of relevance and <u>Faithful representation</u>.

Learn more about Faithful representation here:brainly.com/question/14506917

#SPJ1

7 0

1 year ago

If the margin of safety is 0, then a.the margin of safety cannot be less than or equal to 0; it must be positive. b.the company

sdas [7]

Answer:

d.the company is precisely breaking even.

Explanation:

Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.

Basically it is quoted as follows:

$\frac{Current\ sales\ -\ Break-even\ Sales}{Current\ Sales} \times 100$

Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0

Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.

3 0

3 years ago

Which audience analysis anticipates resistance if something is going to cost money?

Katena32 [7]

The audience analysis that anticipates resistance if something is going to cost money is a situational analysis. This is further explained below.

<h3>What is situational analysis?</h3>

Generally, An organizational situation may be better understood by doing a situational analysis, which is a set of techniques for evaluating both the internal and external variables of a company.

In conclusion, A situational analysis is the kind of audience analysis that determines whether or not there will be opposition to anything if it will cost money.