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kompoz [17]
3 years ago
9

Which would you prefer?

Business
1 answer:
Pavel [41]3 years ago
7 0

Answer:

I would invest in 4% annual yield risk-free bonds from Utopia

Explanation:

I will assume that I am investing $1,000

  • if I invest in a, I will receive $1,000 x 1.04¹⁰ = $1,480.24 in 10 years
  • if I invest in b, I will receive $1,000 x 1.03¹⁰ = $1,343.92 in 10 years
  • if I invest in c, I will receive $1,000 x 1.02¹⁰ = $1,218.99 in 10 years
  • if I invest in d, I will receive $1,000 x 1.03¹⁰ = $1,343.92 in 10 years

Since the 4 bonds are theoretically risk-free, I must choose the one that yields the highest interest rates.

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The following data are available relating to the performance of Sooner Stock Fund and the market portfolio:
Oliga [24]

Answer:

2.6%

Explanation:

Jensen Measure is calculated using the below formula

Jensen Alpha = Rp - (Rf + beta*(Rm - Rf))

Where Rp = Return on portfolio = 20%, Rf = risk free rate = 3%, Beta = Beta of portfolio = 1.8 and Rm = Market return = 11%

Jensen Alpha = 20 - (3 + 1.8*(11-3))

Jensen Alpha = 20 - (3 + 1.8*8)

Jensen Alpha = 20 - (3 + 14.4)

Jensen Alpha = 20 - 17.4

Jensen Alpha = 2.6%

6 0
3 years ago
Examples of how percents are used in business
elena-s [515]
Percents can show how much of the money transferred was expense, profit, and so on. it can show an increase or decrease in sales. it can also show demographics of consumers.
3 0
3 years ago
A firm hires labor, capital, and land to produce grapefruits. currently the marginal product of the last unit of labor input is
umka21 [38]

Answer:

$100

Explanation:

the marginal product per dollar spent on labor = 40 units / $20 = 2 units per dollar

the marginal product per dollar spent on capital = 60 units / $30 = 2 units per dollar

the marginal product per dollar spent on land = 2 = 200 / $X

$X = 200 / 2 = 100 ⇒ the cost per unit of land is $100

The marginal product per dollar spent on a factor of production (labor, capital or land) is MP(factor)/P(factor). It measures how many additional units of output can be obtained by spending $1 more in a factor of production.

6 0
3 years ago
The adversarial system is said to have developed from the trial by ordeal wherein disputes were settled by having the parties fi
nikdorinn [45]

The correct answer is cross-examination. Cross examination is being defined as an interrogation in which being asked to a witness that is being called out by the opponent in which this is being preceded by the direct examination which is followed by a redirect examination.

8 0
3 years ago
Perry is listing his home with Extra Real Estate Company, a brokerage. He wants the listing as follows: He must receive $250,000
Dominik [7]

Answer:

D. Net Listing

Explanation:

Based on the information provided within the question it can be said that the type of listing agreement that Perry is demanding is a Net Listing. This is a listing agreement stating that the seller will receive a pre-defined amount of money for the sale of the listing, and that the excess amount is to go to the broker as a commission for the listing. Which is exactly what Perry wants for the listing.

3 0
3 years ago
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