Answer:
Therefore, the Beta of Portfolio AC is 1.10
Explanation:
In order to calculate the Beta of Portfolio AC we would have to make the following calculation of the following formula according to the given data:
beta of Portfolio AC is given as=80%*1.0+20%*1.5
beta of Portfolio AC is given as=0.8+0.3
beta of Portfolio AC is given as=1.10
Therefore, the Beta of Portfolio AC is 1.10
Answer:
$25,000
Explanation:
Assuming it is to be perpetuity. Amount to be saved = P/I
Amount to be saved = Annual interest amount / Annual interest rate
Amount to be saved = $2,000/8%
Amount to be saved = $2,000/0.08
Amount to be saved = $25,000
So, the worker should save $25,000 before retirement if he wishes to draw interest of $2,000 per year.
Answer:
must choose to invest in either A or B, but not both.
Explanation:
The whole concept of being mutually exclusive is that you must choose only one alternative investment. You can either choose to invest in A or B, but you cannot invest in both A and B, or first invest in A (or B) and then in the other one.
Generally investment projects are mutually exclusive due to budgetary constraints, i.e. you do not have enough money to invest in all of them, so you must choose the most profitable one considering the associated risks and capital costs.
Answer:
B. Probable Cause
Explanation:
In law, probable cause refers to the believe on reasonable grounds that an individual or a group of persons have committed a crime. Courts only finds probable cause when there are reasonable basis on which accusations are formed. It is the requirement in criminal law that police have adequate reason to arrest someone, conduct a search, or seize property relating to an alleged crime. The only way a warrant can be issued from Judge Pearl to Officer Nini is if Nini is able to find probable cause that Operational business corporation is committing or have committed a crime.
Answer:
Compound interest have more of an impact for <em>long-term</em> investments
Explanation:
Interest earn on the principal for one period (P) is the same for compound and non-compound interest
The <u>non-compound interest</u> of period n is is the sum of P for all n periods: P*n
<u>Compound interest</u> is the result of reinvesting interest.
The compound interest of period n (
) = interest earned on the principal (P) + interest on <em>previously accumulated interest of n-1 periods</em> (
), where...
...<em>previously accumulated interest of n-1 periods</em> (
)= interest earned on the principal (P) + interest on <em>previously accumulated interest of n-2 periods</em> (
)
... and so on backward to the interest of period 1 = interest earned on the principal (P) = non-compound interest of period 1
It can be seen that the less (more) time pass, the less (more) the gap between compound interest and non - compound interest