Answer:
(C) Asset Y, since its coefficient of variation is lower and its expected return is higher
Explanation:
Given the various probabilities (P) and returns (R) for Asset X and Asset Y, their expected return is computed as follows.
Asset X = 
= (0.1*-3%) + (0.1*2%) + (0.25*5%) + (0.25*8%) + (0.3*10%)
Expected return (Asset X) = 6.15%
Asset Y = 
= (0.05*-3%) + (0.1*2%) + (0.3*5%) + (0.3*8%) + (0.25*10%)
Expected return (Asset Y) = 6.45%.
Due to its higher expected return, Asset Y should be preferred.
The answer is option C because it contained a statement that Asset Y has a higher expected return.
Option (B) is wrong because we are not certain if Asset Y has a lower beta. We were not given any information to compute the beta.
Options (A), (D) and (E) are wrong because they did not specify Asset Y has the preferred asset.
Answer:
Major challenges are wars and conflicts, reduced investments and reduced trade is hindering the economic development.
Explanation:
- The BRICS economy is in the major economy in the world. It has an economy of manufacturing, services, and raw materials. The contribution of the BRCS economy is bout 30% of the world economy as of 2014.
Answer:
$35.71
Explanation:
The computation of the stock drop price is shown below:
Maintenance margin = Number of shares purchased × price - loan amount ÷ Number of shares purchased × price
30% = 200 shares × price - $5,000 ÷ 200 shares × price
30% × 200 shares × price = 200 shares × price - $5,000
60 × price = 200 shares × price - $5,000
After solving this, the price would be $35.71
And, the loan amount is equal to
= Number of common stock shares purchased × per share value × initial margin
= 200 shares × $50 × 50%
= $5,000
The interest rate that should be used when evaluating a capital investment project is sometimes called the appropriate discount rate and cost of capital.
The cost of capital refers to the minimum rate of return needed from an investment to make it worthwhile, whereas the discount rate is the rate used to discount the future cash flows from an investment to the present value to determine if an investment will be profitable. Appropriate Discount Rate means, at any time, the real (i.e., not inflation adjusted) weighted average cost of capital (after taxes payable by the concession business).
Cost of Capital = (Risk-Free Rate of Return + Credit Spread) × (1 – Tax Rate)
To know more about cost of capital here
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Answer:
Americans piled into the metal as protection from the collapsing value of the dollar. But since the 1970s, the government has enacted a series of laws that have made owning gold more difficult, more costly, and less private.
Explanation:
:D
