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egoroff_w [7]
3 years ago
9

"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate reco

mmendation would be to:"
Business
1 answer:
NeTakaya3 years ago
7 0

Answer: sell covered calls

Explanation:

A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.

It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.

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Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du
anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0
3 years ago
Based on what you have read, what can you infer about the relationship between advertising and the price you pay for a product a
jek_recluse [69]
Advertising will be effective if its production and placement must be based on a knowledge on a public and skill use of the media. Advertise are based on consumer's behavior and demographic analysis of a market area.
5 0
3 years ago
Read 2 more answers
A customer wishes to place a buy order for a security that has not been registered with the SEC. The security may be purchased i
cupoosta [38]

Complete Question:

A customer wishes to place a buy order for a security that has not been registered with the SEC. The purchase order can be filled if the security:

A. is exempt from SEC registration

B. is traded by at least 2 market makers

C. has been trading in the market for at least 1 year

D. is sold to professional investors

Answer:

Is exempt from SEC registration

Explanation:

The Securities and Exchange Commission (SEC) is a regulatory agency that is saddled with the responsibility of regulating the capital market and ensuring investors are well protected by making sure standard rules are followed.

If a customer wishes to place a buy order for a security that has not been registered with the Securities and Exchange Commission (SEC). The security may be purchased if the security is exempt from SEC registration.

By standard, the SEC states and implore investors to purchase only securities that are registered with the securities and exchange commission (SEC) or only when an exemption is made available. If securities have been trading for about a year or is being traded by a minimum of two companies, no exemption would be given by the SEC.  

Also, there isn't any exemption for securities that is sold only to professional investors.

However, investors can purchase municipal and government securities even without it being registered with the securities and exchange commission.

<em>In a nutshell, the customer can only purchase a security that has not been registered only if it is exempted from SEC registration. </em>

3 0
3 years ago
Why is a price floor set above an equilibrium price tends to cause persistent imbalances in the market?
kotykmax [81]

Answer:

A price floor set above the equilibrium price will result in a surplus of supply.  

Explanation.

An equilibrium price refers to the price at which demand for a service or product is equivalent to the quantity of the product or service supplied in the market.

Setting a price floor above the equilibrium price essentially means that the set prices will be higher than what demand is willing to pay for the product or service. Demand will therefore purchase fewer quantity of the product offered by supply at the prevailing price than they would have at equilibrium price.

Since the price floor will raise the product price to considerably higher than the equilibrium price, supply will be willing to provide higher volumes of the product at the prevailing price than at equilibrium price.

This will lead to a mismatch in the market between supply and demand resulting into a surplus.

5 0
3 years ago
Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed c
Lyrx [107]

Answer:

the variable cost ratio is 60 % (option d)

Explanation:

The variable cost ratio (VCR) represents the ratio of variable costs to sales. Therefore

VCR = (total variable costs)/(total sales)

since

total variable costs = variable costs * services provided = $21/hour * 12000 hours/year = $252000 /year

total sales = price of service * services provided = $35/hour * 12000 hours/year = $420000 /year

thus

VCR = ($252000 /year) / ($420000 /year) = 0.6 = 60 %

8 0
3 years ago
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