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UkoKoshka [18]
3 years ago
7

Capital allocation line is _______________ Question 18 options: plot of risk-return combinations available by varying portfolio

allocation between a risk-free rate and a risky portfolio None of the options are correct plot of risk-return combinations available by varying portfolio allocation between two risky assets plot of risk-return combinations available by equal weighting allocation between a risk-free rate and a risky portfolio
Business
1 answer:
NemiM [27]3 years ago
7 0

Answer:

plot of risk-return combinations available by varying portfolio allocation between a risk-free rate and a risky portfolio

Explanation:

The capital allocation line (CAL) is called as the capital market line tha developed on the graph for all the expected combinations related to the risk-free and risk assets. In this, the graph presented the return investor that expected earn by assuming the particular level of risk along with the investment

Therefore the first option is correct

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The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d
Snowcat [4.5K]

Answer:

18.80%

Explanation:

Data given

Risk free rate = 4%

Beta = 1.85

Market return = 12%

The computation of rate of return is shown below:-

Using CAPM

Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)

= 4% + 1.85 × (12% - 4%)

= 4% + 1.85 × 8%

= 4% + 14.8%

= 18.80%

Therefore for computing the rate of return we simply applied the above formula.

6 0
3 years ago
Siiri invests 10 % in real estate, 40 % in mutual funds, 25 % in government bonds, and 25 % in stocks. what do Siri’s investment
jeka57 [31]

Answer: Asset allocation

Explanation:

Asset allocation refers to the strategy of investing in different types of assets and investment vehicles so that the risks would be balanced by the rewards to be earned so that the investor will benefit.

Asset allocation is usually based on the investor's investment goals and their risk appetite. Those who are more risk tolerant will usually invest more in stocks so Siiri here is most likely risk averse but based on the percentage that went into stocks, they might be more risk neutral.

4 0
3 years ago
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry​ leaders, who have turnover of about 13 times per y
KiRa [710]

Answer:

16.31 times

Explanation:

The computation of the inventory turnover is shown below:

Inventory turnover ratio =  Cost of goods sold ÷ average inventory

where,

Cost of goods sold is $20,720

And, the average inventory is $1,270

So, the inventory turnover ratio is

= $20,720 ÷ $1,270

= 16.31 times

All other information that is given in the question is not relevant. Therefore, we ignored it

5 0
3 years ago
Which accountants-only tool enables you to categorize a couple of transactions or a large batch of transactions in only a few cl
Paha777 [63]

Answer: Reclassify Transactions

Explanation:

The accountants-only tool that enables one to be able to categorize a couple of transactions or a large batch of transactions in only a few clicks is referred to as the reclassify transactions.

In order to reclassify transactions, one has to find the transactions that the accountant wants to reclassify first, after which the transactions would then be reclassified and then moved.

6 0
3 years ago
According to arnold and bustos, which two sectors of the US economy are the mot carbon-intensive?
Stels [109]

Answer: Transportation and electricity generation

Explanation:

According to Arnold and Bustos, the two sectors of the United States economy that are the most carbon-intensive are the transportation sector and the electricity generation sector.

The transportation sector contributes a lot to the emissions of greenhouse gas emissions as they typically come when fossil fuel for ships, vans, planes, motorcycles, cars etc are burned. Also, the generation of electricity is also carbon intensive as carbon is being powered in order to generate electricity.

7 0
3 years ago
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