During the revision phase for an argumentative essay, a writer should

The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfoli

astra-53 [7]

Answer:

0.8%

Explanation:

Calculation to determine what percent of the adjusted portfolio would need to be invested in T-Bills

Using this formula

M2 =(Rp - Rf) * σ m / σ p - (Rm - Rf)

Whrere,

Rp represent Return on Seminole Fund (14%)

Rf represent Risk free rate of return(6%)

Rm represent Return on Market Portfolio(18%),

σ m represent Standard Deviation of return on market portfolio (22%)

σ p represent Standard Deviation of return on fund (30%)

Let plug in the formula

M2= (18 - 6) * 22 / 30 - (14 - 6)

M2= (12 * 0.73 ) - 8

M2= 8.8 - 8

M2= 0.8%

Therefore the percent of the adjusted portfolio that would need to be invested in T-Bills is 0.8%

8 0

3 years ago

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio'

Solnce55 [7]

Answer:

What would your portfolio's new beta be? 2,04

Explanation:

"To calculate the ending Beta by changing one stock it's necessary to find how much weigh the stock we are removing from the portfollio.

7.500 / 150.000 = 0,050 , now we have the participation of the stock in the portfolio, then we weigh the beta of the stock we want to remove by this number, 1,00 (Beta) x 0,050 (weight in the portfolio) = 0,050 (Beta), the number it's the same as the weight because the Beta is 1,00.

Now with this final number we can ponderate the new Beta in the Portfolio, so we multiply the 0,50 (weight) * 0,75 (New Beta) = 0,038 New Beta. We substitute the beta we remove for this one and we get the NEW BETA PORTFOLIO of 2,04. Please see details below:

Portfolio # Beta NEW Beta Weight Old Beta New Beta

$ 7.500 1 1,00 0,75 0,05 0,05 0,04

$ 7.500 2 2,05 2,05 0,05 0,10 0,10

$ 7.500 3 2,05 2,05 0,05 0,10 0,10

$ 7.500 4 2,05 2,05 0,05 0,10 0,10

$ 7.500 5 2,05 2,05 0,05 0,10 0,10

$ 7.500 6 2,05 2,05 0,05 0,10 0,10

$ 7.500 7 2,05 2,05 0,05 0,10 0,10

$ 7.500 8 2,05 2,05 0,05 0,10 0,10

$ 7.500 9 2,05 2,05 0,05 0,10 0,10

$ 7.500 10 2,05 2,05 0,05 0,10 0,10

$ 7.500 11 2,05 2,05 0,05 0,10 0,10

$ 7.500 12 2,05 2,05 0,05 0,10 0,10

$ 7.500 13 2,05 2,05 0,05 0,10 0,10

$ 7.500 14 2,05 2,05 0,05 0,10 0,10

$ 7.500 15 2,05 2,05 0,05 0,10 0,10

$ 7.500 16 2,05 2,05 0,05 0,10 0,10

$ 7.500 17 2,05 2,05 0,05 0,10 0,10

$ 7.500 18 2,05 2,05 0,05 0,10 0,10

$ 7.500 19 2,05 2,05 0,05 0,10 0,10

$ 7.500 20 3,10 3,10 0,05 0,15 0,15

$ 150.000 1,000 2,05 2,04

7 0

3 years ago

The following information is available from the land account: Opening balance $270,000 Sold for $200,000 cash 170,000 credit ent

oee [108]

Answer:

a. cash received from sale of land, $200,000.

Explanation:

A statement of cash flows can be described as a financial statement that provides the summary of the amount of cash and cash equivalents that a company receives or pays during a particular period.

A cash flow statement presents how cash and cash equivalents are affected by changes in income and balance sheet accounts by breaking the analysis down to operating, investing, and financing activities.

As it can be seen above, investing activities is one of the three categories of activities that are reported in a statement of cash flows. Investing activities under the statement of cash flows therefore deals with the payments or receipts of cash and cash equivalents for the purchase and sale of long-term assets and other business investments during a particular period.

From the question, the only cash and cash equivalents transaction is the selling of land for $200,000 cash. Therefore, items in the Investing Activities section of the statement of cash flows should include cash received from sale of land, $200,000. The correct option is therefore a. cash received from sale of land, $200,000.

4 0

3 years ago

Walmart is opening 12 stores to test the concept of walmart express, stores that are one-tenth the size of its supercenters and

Alecsey [184]

The answer that best complete the blank provided above is the term CANNIBALIZATION. Product cannibalization happens when a new product that is being introduced by the same producer, eats up the sales of the other products that exist in the same market resulting in the decrease of the overall sales.

6 0

3 years ago

Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on

Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

(31,700-7,600)

8 0

3 years ago