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Salsk061 [2.6K]
3 years ago
8

Consider a portfolio comprised of four risky securities. Assume the economy has three states with varying probabilities of occur

rence. Which one of the following will guarantee that the portfolio variance will equal zero?A. The portfolio beta must be 1.0.B. The portfolio expected rate of return must be the same for each economic state.C. The portfolio risk premium must equal zero.D. There must be equal probabilities that the state of the economy will be a boom or a bust.
Business
1 answer:
olga nikolaevna [1]3 years ago
8 0

Answer:

B. The portfolio expected rate of return must be the same for each economic state.

Explanation:

Variance formula = sum of (probability x (r - mean)^2)

r= expected return

if the expected return would be same for each economic state then the mean would equal to expected return which ultimately will give variance zero ( as r-mean would be 0).

Hence the correct option is B. The portfolio expected rate of return must be the same for each economic state.

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How did the extra, one-time payment of $100 affect the total interest Janet pays on the loan?
Shkiper50 [21]

Amortization simply means the practice of spreading the cost of an intangible asset over the useful life of the asset.

Your question is incomplete as you didn't provide the amortization table. Therefore, an overview of amortization will be given.

It should be noted that amortization is usually expensed on a straight-line basis. In such a case, the same amount will be expensed for every period over the life of the asset.

For example let's assume that Janet borrows $2000 at 4% for 2 years. The interest that will be paid will be:

= $2000 × 4% × 2

= $2000 × 0.04 × 2

= $160

The interest here is $160. Based on the question, since $100 has been paid, it should lead to a lower interest that will be paid on the loan.

Read related link on:

brainly.com/question/25443577

7 0
2 years ago
Mark is selling gourmet apples at a price of ​$3 per pound. ​ currently, he sells 150 pounds of apples per week. this​ week, mar
Dafna1 [17]
Mark's initial revenue was $450 (150lb)($3) and his new revenue was $500 (100lb)($5). Since Mark's revenue increased when the price if apples rose, the demand for Mark's gourmet applies must be inelastic. Elastic, because even though there was a change in price, the change in price wasn't substantial. 
4 0
3 years ago
Read 2 more answers
In 2019, Wildhorse Company had a break-even point of $244,000 based on a selling price of $5 per unit and fixed costs of $97,600
Luden [163]

Answer:

unitary variable cost= $3

contribution margin ratio= 0.4

Explanation:

Giving the following information:

break-even point= $244,000

the selling price= $5 per unit

Fixed costs of $97,600.

First, we need to calculate the contribution margin ratio, we will use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

244,000= 97,600/contribution margin ratio

contribution margin ratio= 97,600/244,000

contribution margin ratio= 0.4

Now, we can calculate the unitary variable cost:

contribution margin ratio= (selling price - unitary variable cost)/seling price

0.4= (5 - unitary variable cost)/5

2= 5 -unitary variable cost

unitary variable cost= 3

7 0
3 years ago
The gaol of a country with a healthy economy is to have _____ equal to zero
ladessa [460]
I would say the goal of a healthy economy is to have zero unemployment because that would mean that all able bodied men and women were gainfully employed which would enable them to contribute to the economy by producing wealth plus also consuming goods for their social reproduction with the resulting two-fold benefit to the economy.
6 0
3 years ago
The Glass Ceiling paid an annual dividend of $1.64 per share last year and just announced that future dividends will increase by
belka [17]

Answer:

$1.77

Explanation:

Calculation for the amount of the expected dividend in Year 6

Using this formula

Year 6 Expected Dividend=Annual dividend ×(1+Future dividends increase)^ Number of years

Let plug in the formula

Year 6 Expected Dividend=$1.64 ×(1.013)^6

Year 6 Expected Dividend= $1.64 ×(1+.013)^6

Year 6 Expected Dividend= $1.77

Therefore the amount of the expected dividend in Year 6 will be $1.77

6 0
3 years ago
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