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Damm [24]
3 years ago
5

You want to invest $50,000 in a portfolio with a beta of no more than 1.4 and an expected return of 12.4%. Bay Corp. has a beta

of 1.2 and an expected return of 11.2%, and City Inc. has a beta of 1.8 and an expected return of 14.8%. The risk-free rate is 4%. You can invest in Bay Corp. and City Inc. How much will you invest in each?
Business
1 answer:
IRISSAK [1]3 years ago
8 0

Answer:

Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;

(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%

0.112x + 0.148 - 0.148x = 0.124

-0.036x = -0.024

x = 0.67

Portfolio beta is;

= 0.67 * 1.2 + ( 1 - 0.67) * 1.8

= 1.398 so beta condition is satisfied.

Amount in Bay Corp.;

= 0.67 * 50,000

= $33,500

Amount in City Inc.;

= 50,000 - 33,500

= $16,500

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PIT_PIT [208]

Kohl’s is addressing the increasing importance of technology in the retail experience by investing in E. All of the above.

<h3>What is technology? </h3>

It should be noted that technology simply means the application of science to a particular course.

From the complete question, Kohl’s is addressing the increasing importance of technology in the retail experience by investing in digital promotion, self checkout, etc.

Learn more about technology on:

brainly.com/question/25110079

7 0
2 years ago
The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in
Elina [12.6K]

Answer:

Falls by $100,000

Explanation:

In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.

Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000

We now calculate the price or worth of the land when demand falls

This is mathematically equal to 400 * 1000 = $400,000

Now, the net economic rent fall would be $500,00 - $400,000 = $100,000

Hence, there would be a fall of $100,000 as the demand for land falls

5 0
3 years ago
Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $
Cerrena [4.2K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.

Selling price= 40/1.25= $32

A) Gross margin= 32 - 15= 17

%= 53%

B) Mettel is considering increasing its annual advertising spending from $75,000 to $150,000.

Break-even point= fixed costs/ contribution margin

Break-even points= 150,000/17= 8,824 units

C) Break-even points= 75,000/14= 5,357 units

7 0
3 years ago
A company issues 9%, 5-year bonds with a par value of $140,000 on January 1 at a price of $145,678, when the market rate of inte
gavmur [86]

Answer:

The amount of each semiannual interest payment is: $6,300

Explanation:

The semiannual interest payment of the bond is also known as the <em>coupon payment</em> of the bond and is calculated as follows :

Semiannual interest payment = ($140,000 × 9%) ÷ 2

                                                 = $6,300

4 0
3 years ago
The way a product is delivered is determined by:Consumers in highly developed countries value _____ as compared to their counter
ss7ja [257]

Answer:

The correct answer to the following question is Product attributes.

Explanation:

Product attributes can be defined as the characteristics or features of a particular product that helps in defining what the product is and these attributes have a influence on the consumer's buying decision. Such attributes can be both tangible and intangible, where in tangible it can be color, weight, size, quantity of the product and on the other hand in the intangible attributes it can be quality, price , reliability of the product. In the developed nations people value such attributes more than in other developing nations.

3 0
4 years ago
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