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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%

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Bill Schultz works at a high power investment firm in Los Angeles. Bill is responsible for promoting the firm's vision and creat
kramer

Answer:

Strategic level

Explanation:

Bill is at the strategic level of the organisational pyramid. He is responsible for allocating the resource of the organisation and taking decisions on behalf of the owners. Bill is at the strategic level because he is also required to make a strategic decision and goals for the company.  The strategic level of management is one of the important parts of any organisation, as the strategic performance of the company relies heavily on strategic management.

5 0
3 years ago
Check My Work Dressed to a Tee received a promissory note of $8,000 for 10 months at 6% simple interest from one of its customer
nikklg [1K]

Answer:

$8,120

Explanation:

<em>To calculate the proceeds, the gross proceed  less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>

Gross proceed= P + (P×R×T)

P- 8,000 R- 6%, T- 10/12

Gross proceed = (8,000 + 8,000× 6%× 10/12)

                         = $8,400

Discount charges = Gross proceed × discount rate × time to maturity

Time to maturity = 10 - 5 = 5 months

Discount rate - 8%, Time- 5/12

Discount charges =  8400× 5/12× 8% = $280

Proceeds to be received = $8,400 - $280

                 = $8,120

5 0
3 years ago
Which sentence avoids redundant expressions?
guapka [62]
<span>Of all the expresions given (B) is the correct answer. So the answer is "let's not repeat our competitor's mistakes". Redundant is a expressions which says it no longer in use or needed. So by the definition of it, the above phrase seems the option.</span>
3 0
3 years ago
When a company sells a product for a price that is less than the cost of producing the product, it is engaging in:.
vesna_86 [32]

If a company sells a product at a price that is less than the cost of producing the product, then it is engaged in dumping.

<h3>What do you mean by a Product?</h3>

A product refers to any product, goods, or services intended for sale purposes. Goods, services, experiences, shopping, convenience, specialty goods, consumer goods, and industrial goods are the different types of products.

Dumping refers to when a company or country exports a product that is lower in the foreign market than the domestic export market. According to World Trade Organization, dumping is legal.

Therefore, Dumping is when a company sells a product that is lower than the cost of producing the product.

Learn more about the product here: brainly.com/question/22852400

#SPJ1

7 0
2 years ago
A researcher randomly assigns 50 students to two groups of 25. group 1 is given computers and educational software to take home
Dafna1 [17]
<span>This study is a randomized control trial (RCT). In an RCT, participants are randomized into one of two groups - an intervention group or a control group. The intervention group receives the treatment of interest to the researchers (in this case, computers and educational software) while the control group does not. This will allow the researchers to examine the effect of the intervention (computers and educational software) on achievement tests scores.</span>
7 0
3 years ago
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