1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andrej [43]
3 years ago
14

A person wants to invest $10,000 into stocks: a high tech company (T) with an expected annual return of 12% and a risk index of

8; and a regulated power company (P) with an expected annual return of 6% and a risk index of 2. To limit risk, the combined portfolio risk must be no more than 6 and the proportion of investment in T must be less than 60%. Find the portfolio that will maximize the annual return R while meeting the risk limitations. Homework 10a (10 points): Formulate the Investment Portfolio problem with the requirement of investing up to $10,000, and solve it graphically.Homework 10b (5 points): Compute the increase in annual return if the total investment is increased by $1,000.Homework 10c (5 points): Compute the increase in annual return if the constraint of portfolio risk index is increased from 6 to 7.
Business
1 answer:
Lelu [443]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document. Last version.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
You might be interested in
A news release for a diet product company reports: There's good news for the 65 million Americans currently on a diet. Its study
dexar [7]

Answer:

C. biased, understating the effectiveness of the diet.

Explanation:

As the company promises the population of America which is too huge, just on the study based on 20 employees of the company itself.

This clearly means that the company is trying to sell the product with false reports as the sample size of study is to small to represent entire American Population.

Further that too the employees could be influenced to get the false results.

As since the employees could be influenced and that the results can be altered accordingly, the report is biased, and is misleading.

6 0
3 years ago
On January 2, 2018, Ava Co. issued at face value $53,300 of 9% bonds convertible in total into 9,649 shares of Ava's common stoc
aalyn [17]

Answer: $123,583.90

Explanation:

Given the following Parameters,

Net income = $120,226,

Interest rate = 9%

Tax = 30%

The following formula then applies,

Diluted EPS = (Net income + Interest after tax)/Total outstanding shares outstanding

Now, Interest(Before tax) = $53,300 * 0.09 = $4797

Now we have to calculate it After Tax

= 4,797 (1-tax rate)

= 4,797(1-0.3)

= $3,357.90

The numerator is,

= (Net income + Interest after tax)

= 120,226 + 3,357.90

= $123,583.90

The numerator in the diluted earnings per share calculation for 2018 would be $123,583.90

4 0
4 years ago
Read 2 more answers
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0
3 years ago
A Super Happy Fun Ball is dropped from a height of 10 feet and rebounds 13/14 of the distance from which it fell. How many times
Phantasy [73]

Answer:

32

Explanation:

First bounce = 13 / 14 × 10 = 130 /14

using geometric progression where the common ratio = 13/14, the first bound = 130/14

ar^n-1 < 1

substitute the values into the equation

130 /14 × 13/14^(n-1) < 1

(13/14)^n-1 < 1÷ (130/14)

(13/14)^n-1 < 14 / 130

take log of both side

log (13 /14)^n-1 < log ( 14/130)

n-1 log (13 /14) < log  ( 14/130)

since log (13/14) negative

n-1 > (log( 14/130)) ÷ ( log (13/14)

n - 1 > 30.07

n > 30.07 + 1 > 31.07

The 32 bounce will the first less than 1 foot

3 0
3 years ago
Nico is saving money for his college education. He invests some money at 99​%, and ​$17001700 less than that amount at 4 %.4%. T
Rufina [12.5K]

Answer:

Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

Explanation:

He invests some money at 9​%, and ​$1700 less than that amount at 4 %.

Let Nico invest $x at 9%.

It means he invest $( x-1700) at 4%.

The investments produced a total of ​$257 interest in 1 yr.

x\times \frac{9}{100}+(x-1700)\times \frac{4}{100}=257

0.09x+(x-1700)0.04=257

0.09x+0.04x-68=257

0.13x-68=257

Add 68 on both sides.

0.13x=257+68

0.13x=325

Divide both sides by 0.13.

x=2500

Nico invest $2500 at 9% interest rate.

x-1700=2500-1700=800

Nico invest $800 at 4% interest rate.

Therefore Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

5 0
3 years ago
Other questions:
  • Decision Point: Your Second Meeting: Furniture Assembling of wooden table with screwdriver Your next client is a retailer of rea
    8·1 answer
  • ____ describes the average level of ability, experience, personality, or any other factor on a team. A.Team diversity B.Group sy
    9·1 answer
  • Smith's operating cash flows in millions were $100, $150, $80 during the past three years; while Jones' operating cash flows in
    8·1 answer
  • When a swimming park owner charges $4.00 for admission, there is an average attendance of 100 people. For every $0.20 increase i
    8·1 answer
  • Which of these statements is true regarding women in the united states workforce?
    7·1 answer
  • Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by
    8·1 answer
  • On September 1, 2021, Middleton Corp. lends cash and accepts a $13,000 note receivable that offers 9% interest and is due in six
    10·1 answer
  • The balance sheet for Monty Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $1
    6·1 answer
  • Guido and hal want to rescind their contract under which guido sold hal a mountain bike for $100. To rescind the contract.
    12·1 answer
  • Family and consumer sciences cooperative extension agent is an example of a job in which career pathway?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!