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
Alla [95]
2 years ago
9

Your portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The mutual fund has a po

rtfolio weight of 65%. The risk-free rate is 3% and the market risk premium is 7.7%. What is your best estimate for your portfolio's expected rate of return (rounded % to three places after the decimal)
Business
1 answer:
pshichka [43]2 years ago
7 0

Answer:

8.01%

Explanation:

Expected return on mutual fund = Risk-free rate + Market risk premium*Beta

Expected return on mutual fund = 3% + 7.7%*1

Expected return on mutual fund = 10.70%

Best estimate of the portfolio expected rate of return = Weight of  mutual fund*Expected return on mutual fund + Weight of  risk-free Treasury bills*Expected return on risk-free  Treasury bills

Best estimate of the portfolio expected rate of return = 65%*10.70 + 35%*3

Best estimate of the portfolio expected rate of return = 0.08005

Best estimate of the portfolio expected rate of return = 8.01%

You might be interested in
On September 1, 2021, Middleton Corp. lends cash and accepts a $13,000 note receivable that offers 9% interest and is due in six
melamori03 [73]

Answer:

d) $195.

Explanation:

Interest revenue to in 2022 = ($13,000*9%) * 2 months/12 months

Interest revenue to in 2022 = $1,170 *2 months/12 months

Interest revenue to in 2022 = $1,170 *  0.1667

Interest revenue to in 2022 = $ 195.039

Interest revenue to in 2022 = $ 195

7 0
2 years ago
When a buyer's product is not working properly and they have a warranty, what is the first step the buyer should take to resolve
Mumz [18]
Option D. Contact the retailer who sold the product.
7 0
3 years ago
Read 2 more answers
Moral hazard occurs when:
satela [25.4K]
1) Moral hazard occurs when the individual does not tell the others all the risks associated with their actions, so the correct answer is:
D. an individual knows more about his or her actions than other people do.

for the second one:

the money lent will be x

so we have :

x+10%x=1000
(the money lent and the interest are 1000 together)

so: 110%x=1000

\frac{110}{100} x=1000

\frac{11}{10} x=1000
11x=1000
x=1000\11
x=909.09 - so they correct answer is A!

x=


3 0
3 years ago
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D
il63 [147K]

Answer:

$1.88; $2.00

Explanation:

Equivalent Units Produced for direct material:

= Opening Work In Progress + Introduced + Closing units

= units × Degree of completion

= (59,000 × 0%) + (159,000 × 100%) + (84,000 × 100%)

= 0 + 159,000 + 84,000

= 243,000

Equivalent Units Produced for conversion costs:

= Opening Work In Progress + Introduced + Closing units

= Units × Degree of completion

= (59,000 × 65%) + (159,000 × 100%) + (84,000 × 20%)

= 38,350 + 159,000 + 16,800

= 214,150

Cost Per Equivalent Units for direct material:

= Total Cost Incurred ÷ Equivalent Units Produced

= $456,840 ÷ 243,000

= $1.88

Cost Per Equivalent Units for conversion cost:

= Total Cost Incurred ÷ Equivalent Units Produced

= $428,300 ÷ 214,150

= $2.00

5 0
3 years ago
A magazine publisher asks you to commit to a brief trial subscription. having committed to the trial subscription, you may be mo
Aneli [31]
Idk bro I'm just answering this for points
5 0
3 years ago
Other questions:
  • The positive principle, the constructionist principle, and the simultaneity principle are principles of:
    11·1 answer
  • 1. One government policy for dealing with a natural monopoly is to:
    11·1 answer
  • A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj
    12·1 answer
  • Patricia deposited $350 in a savings account with two percent simple interest. If she keeps it in the account for one year, how
    15·1 answer
  • A copyright registered on or after January 1, 1978 lasts how long?
    8·1 answer
  • An organization of atheists sues the city of lakeville for its annual holiday display. each year, the display is in a public par
    6·1 answer
  • In ________ markets, participants post bid and ask prices at which they are willing to trade, but orders are not automatically e
    8·2 answers
  • 5 Senaraikan empat contoh aktiviti perniagaan yang boleh diceburi dengan modal yang kecil
    11·2 answers
  • You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for
    12·1 answer
  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!