Answer:
(a) 41300 (b) 8.10 % (c) 3.41% (at real rates)
Step-by-step explanation:
Solution
Given:
(a) The Weights of assets in Rachel's portfolio: = amount in each stock/ sum of amounts invested in all stocks
Share Amount Weights
A 13500 0.33
B 7600 0.18
C 14700 0.36
D 5500 0.13
THE TOTAL: 41300
(b) The Geometric average return of a portfolio = ((1+R1)*(1+R2)*(1+R3)....*(1+Rn))^(1/n) - 1
Now,
R1= return of period 1 Rn= return in nth period
Thus,
The Geometric average return of Rachel's portfolio=
((1+9.7%)*(1+12.4%)*(1-5.5%)*(1+17.2%))^(1/4) - 1
= 8.10 % (approx) per year.
(c) Using nominal rate of return (including inflation):
The CAPM: Required return= Risk free return + (Risk premium * Beta)
13.6 = Rf + (4.8*1.5)
So,
Rf= 6.4% (not inflation adjusted)
The inflation adjusted rate of return: ((1+return)/(1+inflation rate))-1
= ((1+13.6%)/(1+2.7%))-1 = 10.61%
Using CAPM: 10.61= Rf + (4.8*1.5)
Therefore, Rf= 3.41% (at real rates)
Answer:
y = 3x + 7
Step-by-step explanation:
Parallel lines have the same slope, so you can write the equation y = 3x + b and you have to figure out what b is.
plug in x = -3 and y = -2 into the equation y = 3x + b:
-2 = 3 * -3 + b
-2 = -9 + b
7 = b
So the equation is y = 3x + 7
Answer:
20 passengers at $960 each
Step-by-step explanation:
Assuming at least 20 people sign up for the cruise, determine how many passengers will result in the maximum revenue for the owner of the yacht.
(a) Find a function R giving the revenue per day realized from the charter.
R(x) =
(b) What is the revenue per day if 48 people sign up for the cruise?
$
(c) What is the revenue per day if 78 people sign up for the cruise?
$
revenue (R) = (20+x)(960-8x)
= 19200 - 160x + 960x -8 x^2
dR/dx = -160 + 960 - 16x = 0 for a max of R
16x = 800
x = 50
Answer:
Step-by-step explanation:
The easiest way to understand the answer is to consider two straight lines.
y = 3x + 6
and 2y = 6x + 12
When you graph these two lines, one will be on top of the other. That will give you an infinite number of solutions.
The answer does not depend on the two equations being straight lines. All that is required is that one graph sits on the other. So you could have a pair of quadratics
y = x^2 + 3x + 10
2y = 2x^2 + 6x + 20
would also give you an infinite number of solutions.
Answer:
We are assuming the numbers 1 - 6 on the cubes?
If so,
Blue (3, 4, 5, or 6) is 4/6 or 2/3 chance
Green(1,3,5) is 3/6 or 1/2 chance
To get both the P is 2/3 times 1/2
Step-by-step explanation:
