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vredina [299]
3 years ago
5

What is the expected return on a portfolio that has $100 invested in stock 1 with an expected return of 18.0% and $45 invested i

n stock 2 with an expected return of 12.0%? a) 16.1% b) 16.3% c) 16.5% d) 16.7%
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

Portfolio r = 0.161379 or 16.1379% rounded off to 16.1%

Option a is the correct answer

Explanation:

The expected return of a portfolio is the function of the weighted average of the individual stocks' returns that form up the portfolio. To calculate the expected rate of return of a two stock portfolio, we use the following formula,

Portfolio r = wA * rA  +  wB * rB

Where,

  • w is the weight of each stock
  • r is the return on each stock

Total investment in portfolio = 100 + 45 = 145

Portfolio r = 100/145 * 0.18  +  45/145 * 0.12

Portfolio r = 0.161379 or 16.1379% rounded off to 16.1%

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Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $4
Marrrta [24]

Answer:

Option (B) is correct.

Explanation:

Given that,

Selling price per unit = $48

Desired profit margin on sales = 12.5%

Flyer’s current full cost for the product = $44 per unit

Profit = Selling price × profit margin

         = $48 × 12.5%

         = $6

Target cost of unit = Selling price - Profit

                               = $48 - $6

                               = $42

8 0
3 years ago
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses proces
lys-0071 [83]

Answer and Explanation:

a. The computation of cost of ending work in process inventory for materials, conversion, and in total is shown below:-

For material = 2,080 × $15.66

= $32,572.80

For conversion = 930 × $6.23

= $5,793.90

For total cost of work in process inventory = $32,572.80 + $5,793.90

= $38,366.70

b. The computation of cost of the units completed and transferred out for materials, conversion, and in total is shown below:-

For material = 21,700 × $15.66

= $339,822

For Conversion = 21,700 × $6.23

= $135,191

For total cost of completed and transferred units = $339,822 + $135,191

= $475,013

3 0
4 years ago
An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has
viva [34]

Answer: (A) Market maturity

Explanation:

The market maturity is one of the stage in the product life cycle where is basically refers to the sales growth where the product sales growth get increased and then suddenly get slows down.

The market maturity stage is basically known as the longest stage in the product life cycle. In this life cycle stage the organization reaches to the highest level during the demand cycle.

Therefore, Option (A) is correct.  

8 0
3 years ago
Balance sheets usually classify assets into at least two major categories: current assets and
astraxan [27]

Answer:

False

Explanation:

Balance sheets relate to balance and expenditure over a period.

6 0
3 years ago
Treasury Bonds are _______.A. liquid, but not a store of value. B. a store of value, but not liquid. C. both liquid and a store
miss Akunina [59]

Answer:

C. both liquid and a store of value.

Explanation:

Treasury Bonds are fixed interest long term government debt instrument issued by the government through the monetary authorities (Federal Reserve or Central Bank) to raise fund from the public. Treasury bond has a maturity of between 10 and 30 years.

Treasury bonds is one of the most liquid financial instrument in the world as  it can be turned to cash within a day.

The T-Bond, as treasury bonds is often called is a good store of value as it pays interest and the principal is backed by a legal contract.

5 0
3 years ago
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