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kari74 [83]
3 years ago
11

The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfoli

o Average return 18 % 14 % Standard deviations of returns 30 % 22 % Beta 1.4 1.0 Residual standard deviation 4.0 % 0.0 % The risk-free return during the sample period was 6%. If you wanted to evaluate the Seminole Fund using the M2 measure, what percent of the adjusted portfolio would need to be invested in T-Bills
Business
1 answer:
astra-53 [7]3 years ago
8 0

Answer:

0.8%

Explanation:

Calculation to determine what percent of the adjusted portfolio would need to be invested in T-Bills

Using this formula

M2 =(Rp - Rf) * σ m / σ p - (Rm - Rf)

Whrere,

Rp represent Return on Seminole Fund (14%)

Rf represent Risk free rate of return(6%)

Rm represent Return on Market Portfolio(18%),

σ m represent Standard Deviation of return on market portfolio (22%)

σ p represent Standard Deviation of return on fund (30%)

Let plug in the formula

M2= (18 - 6) * 22 / 30 - (14 - 6)

M2= (12 * 0.73 ) - 8

M2= 8.8 - 8

M2= 0.8%

Therefore the percent of the adjusted portfolio that would need to be invested in T-Bills is 0.8%

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Assume for a perfectly competitive firm, the market price of one box of tissues is $2. What is the marginal revenue when sales i
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Answer:

The marginal revenue = $2

Explanation:

Firstly we calculate the value in dollars for the number of boxes sold

For 100 boxes, we have 100 * 2 = $200

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Thus affirms the fact that for a perfectly competitive firm, marginal revenue MR = P (price)

8 0
3 years ago
On November 30, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co.
scoray [572]

Answer:

Value of goodwill = $350,000

Explanation:

In case where is investment in 100% shares of a company then that may give rise to goodwill or rise to capital reserve.

Any amount paid to acquire that interest in company more than the value of such company is recorded as goodwill.

Here, cost of acquisition = $15 \times 250,000 =  $3,750,000

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7 0
3 years ago
Assume that demand for a commodity is represented by the equation P=10−0.2Qd. Supply is represented by the equation P=2+0.2Qs, w
svet-max [94.6K]

Answer:

Equilibrium price=6

Equilibrium quantity=20

Explanation:

P=10-0.2Qd

P-10= -0.2Qd

Qd=p-10/-0.2

Qd=-5p+50

P=2+0.2Qs

P-2=0.2Qs

Qs=p-2/0.2

Qs=5p-10

(a)

Qs=Qd

5p-10= -5p+50

5p-10+5p-50=0

10p-60=0

10p=60

p=6

Equilibrium price=6

Equilibrium quantity

Qd=-5p+50

=-5(6)+50

=-30+50

=20

Qs=5p-10

=5(6)-10

=30-10

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Equilibrium quantity=20

(c) Graph has been attached showing the equilibrium price and quantity

8 0
3 years ago
Juanita is having her yard landscaped. She obtained an estimate from two landscaping companies. Company A gave an estimate of $2
mafiozo [28]

Answer:

8 hours is required for both companies to cost the same

Explanation:

given data

company A materials and equipment = $220

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company B materials and equipment = $300

company B labor = $35 per hour

to find out

how many hours of labor required

solution

total cost of company A =  220 + 45 h

total cost of company B =  300 + 35 h

so we can say

total cost of company A = total cost of company B

220 + 45 h  = 300 + 35 h

h = 8

so 8 hours is required for both companies to cost the same

5 0
3 years ago
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