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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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4 0
3 years ago
BR Company has a contribution margin of 40%. Sales are $312,500, net operating income is $25,000, and average operating assets a
alexdok [17]

Answer:

A 12.5%

Explanation:

Given that:

Contribution margin = 40%

Sales = $312,500

Net operating income = $25,000

Average operating assets = $200,000

The formula for return on investment is

= Net operating income ÷ Average operating assets

= $25,000 ÷ $200,000

= 12.5%

Therefore, the company's net return on investment is 12.5%

4 0
3 years ago
An entrepreneur wants to start a new business. She needs a huge amount of
anygoal [31]

Answer:

An entrepreneur wants to start a new business. Her most important priorities are having full control over her company and keeping all the profits for herself. Which type of business would best suit her needs?

---> Sole proprietorship

Explanation:

for who has this different question

5 0
3 years ago
Read 2 more answers
stock in ombor medical supplies earns a return of 5.3% annually, while bonds issued by ombor medical supplies earns a return of
cluponka [151]

Bonds will generate $26.40 more income than equities do.

<h3>How is the stock return determined?</h3>

An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.

assuming that the rates remain constant for six years.

If you invest a total of $2,400 in ombor medical dollars, you will receive an annual return of 4.1% on bonds issued by ombor medical supplies and a 5.3% annual return on stock in ombor medical supplies.

The sum will equal $ in six years.

Bonds have a higher yield than equities, as is evident.

Therefore, the difference is $.

Bonds will therefore earn $26.40 more than equities over the long term.

To know more about  stock return visit:-

brainly.com/question/13807835

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5 0
1 year ago
Alchemy Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Ref
kondaur [170]

Answer:

Explanation:

Opening units  0

Started               56000

                        56000

Transffered        30000

Closing                26000

                             Production Table

Using Weighted Average Method

Cost Element   Complete   Closing WIP   Equivellant production units  

Material                30,000        26,000                      56,000  

Labour Cost             30,000        19,500                       49,500  

6 0
3 years ago
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