Answer:
A 10% drop in the value of invested assets would cause the value of the account to decrease by $500
Explanation:
Leverage is a way in which companies can use borrowed capital to use in an investment. The leverage stands to multiply the profits of the investments if the investment proves profitable, however if the investment registers a loss, the loss is also multiplied.
In our case;
Initial value of assets=$1,000
leverage=5:1
A 10% drop means;
Decrease in value of account before leverage=percentage drop×initial value of assets
Decrease in value of account before leverage=(10/100)×1,000=$100
If we apply a leverage of 5:1,
Account decrease after leverage=100×5=$500
A 10% drop in the value of invested assets would cause the value of the account to decrease by $500
Answer:
Portfolio expected return = 0.092225 or 9.2225%
Explanation:
The expected portfolio return is a function of the weighted average of the individual stocks' returns that form up the portfolio. The expected return on the portfolio containing two stocks can be calculated as follows,
Portfolio Expected Return = wA * rA + wB * rB
Where,
- w represents the weight of stocks
- r represents the return from each stock
To calculate the weight of each stock in the portfolio, we first need to calculate the total investment in the portfolio.
Total Investment = 4740 + 3260 = 8000
Portfolio expected return = 4740/8000 * 8% + 3260/8000 * 11%
Portfolio expected return = 0.092225 or 9.2225%
Answer:
Interest= 25%
Explanation:
Giving the following information:
Friendly’s Quick Loans, Inc., offers you "eight for ten or I knock on your door." This means you get $8 today and repay $10 when you get your paycheck in one week (or else).
Interest for the operation:
Interest= 10/8*100= 25%
Answer:
(a) Bank Reconciliation statement:
Bank's cash balance:
= Per bank statement + Deposits outstanding - Checks outstanding
= $22,346 + $1,725 - $1,300
= $22,771
Therefore, bank balance per reconciliation is $22,771.
Company's cash balance:
= Per general ledger - service fees
= $22,810 - $39
= $22,771
Therefore, company balance per reconciliation is $22,771.
(b) Journal entry to adjust balance for cash is as follows:
Bank service charge expense A/c Dr. $39
To Cash A/c $39
(To record bank service charge)
Answer:
a. My question will be to ask them "do you have life insurance?"
Life insurance is defined as a form of indemnity against a future occurrence on the life of an individual . In any case of death, the insurance policy pays a sum of money to the beneficiary.
b. The answer i will be looking for in a skydiving mate will be an individual that has life insurance. This is because an individual with life insurance will be more careful.
