Weight to wealth in the tivo stock = w1 = 0.5
Weight to wealth in intel bonds = w2 = 0.5
Tivo stock beta (beta1) = 1.2
Intel bond beta (beta2) = 0.90
Portfolio (beta) = w1beta1 + w2beta2 = 0.5 x 1.2 + 0.5 x 0.9
The answer is 1.05
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Answer: 27%
Explanation:
The Average rate of return is calculated by;
= Estimated Average Annual income / Average Investment
Estimated Average annual income = Total income/ years income is accrued
= 402,300/5
= $80,460
Average Investment = (Initial cost + Residual value) / 2
= (524,500 + 71,500) / 2
= $298,000
Average rate of return = 80,460/298,000
= 0.27
= 27%
<span>The solution to the problem is as follows:
$1382*24 (4 payments per year * 6 years)=$33,168+$396=$33,564 (Total)
$33,564-$24,680=$8,884
Therefore the total finance charge is c.$8,884.
I hope my answer has come to your help. God bless and have a nice day ahead!
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Reforms in government agencies could be more difficult than in private companies because they tend to be more bureaucratic so more resistant to change as a result as there may be an ingrained way of doing things that is hard to deal with.
