You pay 300 per month for your health plan

Opportunity costs are a large factor in individual decision-making. Please sort the statements according to whether or not they

uranmaximum [27]

Answer:

Has an opportunity cost

Having a "lazy afternoon" VS Working an 8 hour shift VS
Cooking dinner VS Eating out
Reading you favorite book VS Catching up with an old friend

Explanation:

Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else. No matter what we do, we could be doing something else.

4 0

3 years ago

A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a

uranmaximum [27]

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

7 0

3 years ago

What is the percentage loss on the funds she invested if the interest payment is included in the calculation

adoni [48]

Answer with complete Question:

Barbara buys 130 shares of DEM at $33.00 a share and 190 shares of GOP at $37.00 a share. She buys on margin and the broker charges interest of 7 percent on the loan.

a. If the margin requirement is 42 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent.

$ 6,565.60

(Which is equal to 58(100 - 42)% of $11,320.)

b. If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round your answer to the nearest cent.

$ 459.59 ($6,565.60 x 7%)

If after a year she sells DEM for $22.00 a share and GOP for $30.00 a share, how much did she lose on her investment? Use a minus sign to enter the amount as a negative value. Round your answer to the nearest cent.

$ 2,760

What is the percentage loss on the funds she invested if the interest payment is included in the calculation? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places.

28.44 %

Explanation:

a. Data and Calculations:

DEM, 130 shares at $33.00 a share = $4,290

GOP, 190 shares at $37.00 a share = 7,030

Total value of investments = $11,320

Margin requirement = 42% of $11.320 = $4,754.40

Barbara can borrow $6,565.60 ($11,320 - $4,754.40)

1. Interest on borrowed fund (margin):

$6,565.60 x 7% = $459.59

2. Loss from Sale of:

DEM, 130 shares at $22.00 a share = $1,430 ($11 x 130)

GOP, 190 shares at $30.00 a share = $1,330 ($7 x 190)

Total loss from investments = $2,760

3. Percentage Loss, with interest included:

Interest on borrowed fund = $6,565.60 x 7% = $459.59

Total loss from investments = $2,760.00

Total loss = $3,219.59

Total value of investments = $11,320

Percentage Loss = $3,219.59/$11,320 * 100 = 28.44%

4 0

4 years ago

Which of the following is a pair of events which are mutually exclusive?

Lemur [1.5K]

Answer:

C. Sleeping in late and waking up early.

Explanation:

Two or more events are said to be mutually exclusive if and only if they can't happen at the same time.

Going with the above brief analysis, we.can easily say which of the pair of events is not mutually exclusive.

1. Rolling a 4 on a six-sided die and on a four-sided die

It's 100% possible to have an outcome of 4 when a 4 sided die and when a 6 sided die are rolled, whether at the same time or on different occasions. So, this pair of events are not mutually exclusive

2. Making rice and making corn

This pair of events are not mutually exclusive because it's possible to make rice and corn at the same time either together as a meal or separately using different cooking utensils

3. Sleeping in late and waking up early

This pair of events are mutually exclusive. This is so because literally, it's not possible to sleep late and wake up early at the same time.

You sleep early to wake early and you sleep late to wake late.

4. Going to work and riding the bus.

This pair of events are not mutually exclusive because they can occur at the same time when you go to work a bus.

So, option C is the correct answer

4 0

3 years ago

1) When there is uncertainty in the marketplace, what happens to yield spreads and why?2) Why do venture capital companies often

Yuki888 [10]

Answer and Explanation:

1. When there is high uncertainty in the market, there will be high yield spreads. This is because the higher the risk the higher the profit or compensation for risk

2.preferred stock positions pay more consistent dividends that common stock positions and also pay higher than bonds.

3.Accelerated depreciation is depreciation method in accounting that deducts higher depreciation expenses in the early life of an asset therefore leaving the company to pay less taxes on these assets and more cash flow. Increased cash flow consequently encourages and leads to more investment

5 0

4 years ago