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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
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Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
babymother [125]

Answer:  No,the company is not guilty.

Explanation:  In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.

Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.

Hence, Hines could not be charged of guilty of price discrimination.

6 0
2 years ago
The Federal Reserve carries out open-market operations, buying $2 million worth of Treasury Bills from banks. This action increa
klemol [59]

Answer:

67%

Explanation:

Money supply = Money multiplier * Deposit worth

3 = Money multiplier * 2

Money multiplier = 3/2

Money multiplier = 1.5

Now, Money multiplier = 1 / Reserve ratio

1.5 = 1 / Reserve ratio

Reserve ratio = 1/1.5

Reserve ratio = 0.6667

Reserve ratio = 67%

So, the percent of deposits the banks hold as reserves is 67%

7 0
2 years ago
The chapter says that for consumers as a​ group, Quiznos sandwiches are normal goods and Subway sandwiches are inferior goods. B
svetlana [45]

Answer:

confused

Explanation:

The goods whose demand decreases in the market when the consumer income rises are known as inferior goods.

The goods whose demand increases in the market when the consumer income rises are known as normal goods.

Thus, the reasoning of the student is confused as the classification of the goods on the basics of normal or inferior depends on response of the demand when there is a change in consumer's income. Thus, the student's own perception about such classification is confused.

8 0
3 years ago
Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.
Step2247 [10]

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

4 0
2 years ago
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the num
goldenfox [79]

Answer:

Unemployment rate is 25%

Explanation:

The percentage of people eligible for job and not currently involved in paid work or self employed and available for work as well is called rate of unemployment. It is the percentage of people who is not currently woking seeking the job.

Labor Force = Employed persons + Unemployed persons

Labor Force = 24 million + 8 million

Labor Force = 32 million

Unemployment rate = ( Unemployed persons / Labor force ) x 100

Unemployment rate = ( 8 million / 32 million ) x 100 = 25%

3 0
3 years ago
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