Answer:
a. The portfolio weights that remove all risk is 50%
.
b. The risk-free rate of interest in this economy is 13.5%
Explanation:
The formula for standard deviation of a portfolio, of which i cannot type:
a. If we let sigma p = std. deviation of portfolio
rho 1,2 = correlation
if sigma = 0 and rho = -1, then the first equation can be re-written as :
0 = w1^2 * s1^2 + w2^2 * s2^2 + 2 * w1 * w2 * s1 * s2 * -1
0 = (w1s1 - w2s2)^2
w1s1 = w2s2
w1 * 0.03 = w2 * 0.03
w1 = w2 = 50%
Therefore, The portfolio weights that remove all risk is 50%
.
b. Expected return of the portfolio = 0.5*20% + 0.5*7%
= 13.5%
This portfolio has zero risk, risk free rate = 13.5%
Therefore, The risk-free rate of interest in this economy is 13.5%
Answer:
FCPA
Explanation:
The Foreign Corrupt Practices Legislation (FCPA) is indeed a U.S. law enacted in 1977 which forbids U.S. companies and persons from bribing foreign governments to secure a business transaction. The FCPA does not impose a minimum number for a corruption transaction fine. The Foreign Bribery and corruption Law also describes the accountability directives that are needed.
The act relates to global acts aimed at deterring bribery and authority misuse. The jurisdiction of the FCPA encompasses the supervision of publically traded corporations ' acts and also their executives, staff, owners, representatives, and staff.
Answer:
Sole proprietorship
Explanation:
A sole proprietorship is a business form of an organization in which there is only a single owner who operates and controls the business. The main motive of every organization is to maximize revenue, minimize losses and taxes. Also it has unlimited liability
Therefore in the given situation, the sole proprietorship would be the appropriate and the same is to be considered
Answer:
The taxable amount of the distribution is $45,000.
Explanation:
The balance in Jessica's account is $200,000.
The non-deductible contributions made is $20,000.
The deductible contributions made is $60,000.
The amount of distribution received is $50,000.
Non taxable amount percentage
=(non deductible contributions/balance in account)*100
=($20,000/$200,000)*100
=10%
Taxable amount will thus be 100-10=90% of the distribution
=$50,000*(90/100)
=$45,000.
