Answer:
The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1
If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.
16x+ 6(1-x)=10
16x+6-6x=10
10x=4
x=4/10
x= 0.4
This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %
(0.4*16)+(0.6*6)= Rate of return
Rate of return=10%
10% of 1000 = 100
100+1000=$1100
Explanation:
C is your answer (ik it’s likely a little late now, but this will help others who need it♂️)
Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT=$800; i= 5%, n= 10
![Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}](https://tex.z-dn.net/?f=%20Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E0%5D%7D%7B0.05%7D)
= 6,177.39
a2- ![Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E5%5D%7D%7B0.05%7D)
= 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- ![Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E0%5D%7D%7B0.20%7D)
= 3,353.98
b2-![Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E5%5D%7D%7B0.20%7D)
=2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answer:
In the painting of the coronation of Mary, Mary is being crowned by Jesus and God.
Explanation:
In the painting, "The Coronation of the Virgin", Mary, is being crowned by Jesus, the Son and God, the Father. The relationship that Mary had with Jesus, the Son was that she gave birth to Him. Mary was the mother of Jesus and a worshiper of God, the Father. The Holy Spirit is the part of the Trinity.
According to the scriptures of the Bible, Mary conceived Jesus, the Son of God through the Holy Spirit and gave birth to Jesus, the savior of the world.
The significance of the crown is that she is being crowned for being a faithful servant to God by obeying God. The outstretched arms represents that she is welcoming the family.
