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KatRina [158]
3 years ago
15

What is the expected return on a portfolio comprised of $9,750 of Stock X and $4,520 of Stock Y if the economy enjoys a boom per

iod? State of Econom Probability of State of Economy Rate of Return if State Occurs Stock X Stock Y Boom .25 .108 .156Normal .65 .087 . 097Recession .10 .024 .067A. 11.93 percent B. 11.57 percent C. 12.78 percent D. 12.32 percent
Business
1 answer:
snow_lady [41]3 years ago
4 0

Answer:

D. 12.32 percent

Explanation:

Calculation for the expected return on a portfolio

Expected return on a portfolio =[$9,750/($9,750 + 4,520)](.108) + [$4,520/($9,750 + 4,520)](.156)

Expected return on a portfolio =[$9,750/$14,270)](.108) + [$4,520/$14,270](.156)

Expected return on a portfolio =0.07379+0.04941

Expected return on a portfolio = .1232*100

Expected return on a portfolio =12.32%

Therefore the expected return on a portfolio will be 12.32%

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If gdp is $20 trillon, how many years will it take for gdp to increase to $40 trillion if annual growth is 10 percent?
ElenaW [278]

It will take 7 years.

Given GDP is $20 trillion and increased GDP is $40 trillion.

Gross domestic product (GDP) is the standard measure of  value added generated by the country's production of goods and services over a certain time period. GDP is the total monetary or market worth of all completed products and services produced within a country's boundaries in a certain time period.

As such, it also accounts for the money generated by such output, as well as the overall amount spent on final products and services (less imports).

Time take to reach $40 trillion is to be found.

Formula to find the time taken to reach $40 trillion  is given below:

F = P *(1+i) ^t

Here,

F = 40,

P = 20,

I = 10%

Now put the values in the formula given above.

F = 0.1040 = 20 × (1+0.10) ^t(1.10)^t

  = 40 / 20

  = 2

Taking log both sides t = log 2 / log 1.10  

                                    = 7.27 yrs or 7 yrs

Therefore, it will take 7 years.

To know more about GDP click here:

brainly.com/question/1383956

#SPJ4

8 0
1 year ago
A utility‐maximizing consumer buys so as to make ________ for all pairs of goods.
Lady_Fox [76]
MUx / MUy = Px / Py is the right answer
4 0
3 years ago
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume t
svetlana [45]

Answer:

Current Ratio - Transaction 1 = 1.6666  rounded off to 1.67

Current Ratio - Transaction 2 = 1.6388  rounded off to 1.64

Explanation:

The current ratio is a measure of liquidity which measures the amount of current assets a business has to pay off each $1 of current liability. It is calculated as follows,

Current Ratio = Current Assets / Current Liabilities

We know the initial current ratio and current assets. The initial current liabilities will be,

1.8 = 54000 / Current Liabilities

Current Liabilities = 54000 / 1.8

Current Liabilities = $30000

Transaction 1

The result of transaction 1 will be that the current assets will increase by $6000 as inventory increases and the current liabilities will also increase by $6000 as accounts payable are increasing. The new current ratio will be,

Current Ratio - Transaction 1 = (54000 + 6000)  /  (30000 + 6000)

Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67

Transaction 2

The result of transaction 2 will be that the current assets will decrease by $1000 as payment for truck which is a fixed asset is made partly by cash and the current liabilities will not increase as the note signed for the remaining payment of the truck is due after 2 years thus it is a non current liability. The new current ratio will be,

Current Ratio - Transaction 2 = (54000 + 6000 -1000)  /  (30000 + 6000)

Current Ratio - Transaction 2 = 1.6388  rounded off to 1.64

5 0
2 years ago
Nick is working for an advertising firm making $60,000 per year but considers starting his own advertising company. Nick has det
adoni [48]

Answer:

$66,000

$304,000

Explanation:

The computation is shown below:

Total implicit cost is

= Job left cost + forgone the return on investment

= $60,000 + $100,000 × 6%

= $60,000 + $6,000

= $66,000

And, the total cost is

= explicit cost + implicit cost

= $50,000 + $180,000 + $8,000 + $66,000

= $304,000

We simply applied the above formulas so that the correct values could come

4 0
3 years ago
Which of the following is false regarding residual income? Select one: a. It is similar to ROI in that it takes the size of the
Anton [14]
Please answer answer question please answer answer question answer answer me please answer answer question answer answer me question please please answer answer question answer answer me question please please answer question answer answer question question answer please answer answer please thank lord lord please please thank you lord lord please please lord thank you please thank lord please thank you lord please please thank you lord lord please please lord thank you please thank lord please thank you lord please please thank you lord lord please please lord thank you please thank lord please thank you lord please please thank you lord lord please please lord thank you please thank lord please thank you lord
5 0
3 years ago
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