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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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Earnhardt Driving School's 2008 balance sheet showed net fixed assets of $4 million, and the 2009 balance sheet showed net fixed

harkovskaia [24]

Answer:

Net capital spending = $2,985,000

Explanation:

There are two financial years in consideration

They are 2008 and 2009

Closing values of 2008 = Opening values of 2009

Now, closing value of net assets at 2008 = $4 million

Closing value of net assets for 2009 = $6.2 million

Net capital spending = Gross fixed assets at year end - Opening fixed assets

Gross fixed assets = Net Value + Depreciation

= $6.2 million + $785,000

= $6,985,000

Thus, Net capital spending in 2009 = $6,985,000 - $4,000,000

= $2,985,000

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3 years ago

Which of the following is true of debit cards?

8_murik_8 [283]

Answer:

Explanation:

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3 years ago

A contingency was evaluated at year-end. management felt it was probable that this would become an actual liability and the amou

yanalaym [24]

The effect on the financial reporting of the company is that the liabilities on the balance sheet would be understated. This is because at the end of the year, a possible event was calculated. The management felt from the calculation of that event that it is possible that the event could become an actual liability and that the amount could be estimated explainably. So it would become understated if these calculations of probable events cannot be written down in the balance sheet or in the notes of the final statements. It is like a forecasting of possible events that may happen in the future to prevent losses in the company.

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4 years ago

Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of a

Alexus [3.1K]

Answer:

The answer is demographic segmentation.

Explanation:

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3 years ago

Read 2 more answers

A contribution approach income statement ______. reports both gross margin and net income is prepared primarily for external rep

kvasek [131]

Answer:

separates costs into fixed and variable component

can assist with management decision making

Explanation:

The contribution margin may be defined as when we deduct the expenses of the variable from sales. Where contribution margin shows the organization revenue is contributing to net income and fixed cost.

The statement of contribution margin income tells of the earnings at various stages of operations.

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Therefore according to the above description, the last two statements are correct.

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3 years ago