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Alex73 [517]
3 years ago
8

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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Hazelwood Company had beginning inventory of $54,000. During the period the company purchased $109,800 of merchandise. At the en
Ilia_Sergeevich [38]

Answer:

$207000 is the sales revenue for the year.

Explanation:

The given situation is:

Sales Revenue                              100%

Cost Of Goods sold                     <u>  60% </u>

Profit Margin                                  40%

Now we neither have sales revenue figure nor the profit margin figures but we can calculate cost of goods sold from the following formula:

Cost Of Goods Sold = Opening Inventory + Purchases - Closing Inventory

By putting values we have:

Cost Of Goods Sold = $54,000 + $109,800 - $39,600

Cost Of Goods Sold = $124,200

Now cost of goods sold is 60% which means if we want to go at 100% we will divide with the percentage at which we are standing (60%) and multiply with the percentage which we want to calculate (Sales is 100%).

Sales revenue = Cost of goods sold  *    100% / 60%  

Sales revenue = $124200  * 100% / 60%  = $207,000

3 0
3 years ago
What does an exchange rate tell you?
MrRa [10]
When you ask me about exchage rate I remember about Arabic coming to Africa for trading goods. So this tells me that the the value of one currence from deferent nations was converted to another. I hope you got it.
8 0
3 years ago
Read 2 more answers
A synonym for fraudulent is:
boyakko [2]

doing something with criminal intention.

3 0
3 years ago
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Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen ye
dezoksy [38]

Answer:

$4,265.55

Explanation:

Future value = $120,000

Interest rate (i) = 5%

Annual deposit = ?

Time period (n) = 18 year

Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.

Future value = Annual deposit x future value annuity due factor (i%, n)

120,000 = Annual deposit x FVADF (5%, 18period)

120,000 = Annual deposit x 28.13238

Annual deposit = 120,000/28.13238

=$4,265.547

=$4,265.55

4 0
3 years ago
To determine the effective gross income on a property, the sales associate should:________
artcher [175]

Answer:

Subtract vacancy and credit costs from potential gross income

Explanation:

Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.

It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.

EGI is used to determine the value of a rental property and the cash that the property generates.

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