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BaLLatris [955]
3 years ago
6

You have $5,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with

an expected return of 8 percent.
If your goal is to create a portfolio with an expected return of 10.5 percent, you will invest $___ in Stock X and $___ in Stock Y.
Business
1 answer:
Alex17521 [72]3 years ago
3 0
<h3>Answers:</h3><h3>Invest $1785.71 in stock X</h3><h3>Invest $3214.29 in stock Y</h3>

==================================================

Explanation:

x = amount to invest in stock X

y = amount to invest in stock Y

x+y = 5000 = total amount to invest

y = 5000-x after subtracting x from both sides

If you invest x dollars and get a 15% return, then you earn 0.15x dollars

Let A = 0.15x

If you invest y = 5000-x dollars and get a 8% return, then you earn 0.08y = 0.08(5000-x) = 400-0.08x dollars in return

Let B = 400-0.08x

In total, you would earn A+B = 0.15x+(400-0.08x) = 0.07x+400 dollars. Set this equal to 10.5% of 5000, which is 0.105*5000 = 525. This means we want to earn 525 dollars in return. Set 0.07x+400 equal to 525 and solve for x

So,

0.07x+400 = 525

0.07x = 525-400

0.07x = 125

x = 125/0.07

x = 1785.71

y = 5000-x

y = 5000-1785.71

y = 3214.29

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A market is described by the following supply-and-demand curves:QS = 2PQD = 300−PSuppose the government imposes a price ceiling
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Answer:

Binding

$100

200

200

Shortage

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good.

A price ceiling is binding when the price ceiling is below the equilibrium price.

To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.

2P = 300 - P

3P = 300

P = 100

Equilibrium price is $100.

$100 > $90. Therefore, price ceiling is binding.

To find quantity supplied, plug in the value of P into the equation for quantity supplied

QS = 2(100) = 200

To find quantity demanded, plug in the value of P into the equation for quantity demanded

QD = 300 - 100 = 200

when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.

I hope my answer helps you

3 0
3 years ago
As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The fir
I am Lyosha [343]

Answer:

1.5

Explanation:

Current ratio = current asset/current liabilities

This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

current assets = $120,000

current liabilities = $80,000

The firm's current ratio = $120,000/$80,000

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5 0
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What is the most money you get in a job?
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it depends on the job but it is a Anesthesiologists

8 0
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Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of
Bezzdna [24]

Answer:

The  value of the stock is $28.57

Explanation:

Data provided in the question:

Dividend paid at the end of the year, D1 = $2.00 per share

Increase in dividend = $1.50 per share

Growth rate, g = 5% = 0.05

Required rate of return = 12% = 0.12

Now,

Price with constant Dividend Growth model = D1 ÷ ( r - g )

= $2 ÷ ( 0.12 - 0.05 )

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4 0
3 years ago
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surpl
marysya [2.9K]

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

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2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

4 0
3 years ago
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