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kogti [31]
3 years ago
14

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.

6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)
Business
1 answer:
Nady [450]3 years ago
8 0

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

= $15,660.00

And,

standard deviation of return is

= $90,000 × 13% × 44% + $60,000 × 6.6%

= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

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Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles, shares manufacturing operations across i
Burka [1]

Answer:  Related diversification

Explanation: Related diversification refers to a situation that occurs when the business takes on an expansion by offering new products in the markets which are very similar to the existing ones that the firm offers. In the given case Polaris manufactures and offers automobile products in the market and he have separate departments for other different supporting activities for the business, thus, we can conclude that Polaris is using related diversification.

5 0
3 years ago
The term soft money refers to illegal contributions made to candidates from lobbyists attempting to gain access.a. True b. False
aksik [14]

Answer:

False

Explanation:

Soft money is a donation not directly given to a candidate but to a party to be used in National Committees, but not in a federal campaigners.

It is not so regulated as the Hard Money.

Since the Supreme Court has allowed this in 2014 after being banned by legislation in 2002 (<em>Bipartisan Campaign Reform Act</em>) it is not illegal. But it has some rules.

3 0
4 years ago
Before month-end adjustments are made, the February 28 trialbalance of Bose's Enterprise contains revenue of $11,000 andexpenses
AleksAgata [21]

Answer:

$2,800      

Explanation:

<u>REVENUE</u>

Revenue                                                                       $11,000

Add:

B.    Revenue earned but not yet billed = $2,800

D. Unearned revenue noe earned         =<u> $2,500  </u>  <u>  $5,300   </u>

Total Adjusted Revenue                                             <u>  $16,300   </u>

<u>EXPENSES</u>

Expenses                                                                       $11,000

Add:

A.   Depreciation for February                  = $1,200.

C. Accrued interest expense                    =   $800    

E. Prepaid insurance                                  =<u>   $500     </u> <u> $2,500       </u>

Total Adjusted expenses                                               <u>  $13,500   </u>

Correct net income = Total Adjusted Revenue - Total Adjusted expenses  

                                 = $16,300 - $13,500

                                 = $2,800                              

6 0
3 years ago
A stock has an expected return of 11.1 percent, its beta is .86, and the risk-free rate is 5.55 percent. What must the expected
mylen [45]

Answer:

12%

Explanation:

The computation of the expected return on the market is shown below:

As we know that

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)

So, the market rate of return is

= (11.1% - 5.55%) ÷ 0.86 + 5.55%

= 12%

Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium

5 0
4 years ago
an example of the frictionally unemployed is a(n): Group of answer choices geologist who is permanently laid off from an oil com
Anna35 [415]

Answer:

real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California

Explanation:

Frictional unemployment occurs when Labour leaves his job in search of another one. It is the period between Labour leaves current employment and get another one.

geologist who is permanently laid off from an oil company due to a new technological advance is an example of structural unemployment

worker at a fast-food restaurant who quits work and attends college is am example of voluntary unemployment.

autoworker who is temporarily laid off because of a decline in sales is an example of cyclical unemployment.

I hope my answer helps you

8 0
3 years ago
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