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ANEK [815]
2 years ago
13

According to the CME Group, the market price of the E-mini futures is $2,939.25. Each futures contract delivers 50 times the ind

ex. A long-only equity portfolio with market value of USD $10,000,000 has a beta of 1.5. The portfolio manager is planning to increase market exposure such that the portfolio beta becomes 2. How many futures contracts should the manager long/short
Business
1 answer:
KatRina [158]2 years ago
3 0

Answer:

E-Mini futures = $2,939.25

Contract Size = 50

Portfolio Value = $10,000,000, Beta 1.5

Target Beta 2, Planning to increase the exposure

Calculation of Number of contracts needed = [Portfolio Size x (Target Beta - Actual beta)] / Contracts Size x Future Price

= (10,000,000 x (2 - 1.5) ] / 50 x 2939.25

= (10,000,000 x 0.5) / 146962.5

= 5,000,000 / 146962.5

= 34.02228459641065

= 34

So, you need to go Long 34 contracts to Increase the exposure.

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Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
Zina [86]

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

     To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.

7 0
2 years ago
On January 1, 2020, Harter Company had Accounts Receivable $139,000,
LuckyWell [14K]

<u>Solution and Explanation:</u>

<u>Date Particulars Post ref.         Debit ($)    Credit ($) </u>

5- Jan Accounts Receivable  20000  

Sales revenue                                                     20000

(To record the sales revenue)    

5- Jan Notes Receivable         30000  

Accounts receivable                                              30000

(To record the sales revenue)  

18- Feb Notes receivable          8000  

Sales revenue                                                         8000

(To record the notes receivable and sales revenue)  

20- April Cash                        20400  

Notes receivable                                 20000

Interest revenue                                   400

(To record the collection of notes)    

30 april Cash                           25000  

Notes receivable                                 25000

(to record the collection of payment due)    

25 May Notes receivable         6000  

Accounts receivable                            6000

( To record the note settlement of past due balance)    

18- Aug Cash account               8360  

Notes receivable                                      8000

Interest revenue                                         360

(To record the collection of notes payment)    

25- Aug Accounts receivable  6135  

Notes receivable                                      6000

Interest revenue                                         135

1-Sep Notes receivable            12000  

Sales revenue                                        12000

(To record the note for amount due)    

6 0
2 years ago
A customer who shares his or her views of a firm's product and gets attention from other customers who respect these views is re
My name is Ann [436]

A customer who shares his or her views of a firm's product and gets attention from other customers who respect these views is referred to as an opinion leader.

Opinion leaders are individuals or businesses who might be professionals inside an industry or otherwise have perspectives that are both well-known and trusted. As a result, they are able to have an impact on public opinions—such as the opinions of your clients.

Merton distinguishes two varieties of opinion leadership: monomorphic and polymorphic. Typically, opinion leadership is considered as a monomorphic, domain-unique degree of individual variations, this is, someone who is an opinion leader in one field may be a follower in some other subject.

Opinion leaders act as an intermediary between marketers and their target audiences. They acquire information about a sure product, summarize its pros and cons, and bring it to clients in an easy manner. Thought leaders also replace purchasers with product information and supply recommendation on a way to use it.

Learn more about Opinion leaders here brainly.com/question/15834305

#SPJ4

4 0
1 year ago
There are several methods used to classify restaurants, experts agree that the two main categories of restaurants would be:
ludmilkaskok [199]

Answer:

independent, chain are the answer

Explanation:

3 0
2 years ago
Calculate the ROI dollar amount and percentage for these example investments. a. You invest $50 in a government bond that says y
Naily [24]

Answer:

a. ROI Dollar Amount $4; ROI percentage = 8%.

b.ROI Dollar Amount $15; ROI percentage = 15%.


a. We have:

Initial investment            $50

Amount at year end       $54

ROI Dollar Amount         54 -50 = 4

ROI Percentage              \mathbf{ \frac{4}{50} * 100 = 8%}

b.

Initial investment            $100

Amount at year end       $115

ROI Dollar Amount         115 -100 = 15

ROI Percentage              \mathbf{ \frac{15}{100} * 100 = 15%}

8 0
3 years ago
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