C. price index
is the correct answer to the questions
Question 1 of 10
A. is a measure of change in the prices of goods from one period to
another
A. sanction
B. quota
оо O
C. price index
D. subsidy
SUBMIT
Answer:
Option D is the correct option
Explanation:
To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,
Coefficient of variation(CoV) = Standard Deviation/Expected Return
CoV of Buckeye = 14%/20% = 0.7
CoV of Wolverine = 11%/12% = 0.9167
So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.
Hence, Option A
- Required target return of portfolio = 22%
Risk Free return = 8%
Buckeye Return = 20%
Let the weight of Buckeye be X ,& weight of risk free be (1-X)
Required return = (WRF)*(RRF) + (WB)*(RB)
22 = (1-X)(8) + (X)(20)
22 = 8-8X + 20X
14 = 12X
X = 1.17
SO, weight of Buckeye is 1.17 or 117%
while weight of Risk free is -0.17 (1-1.17) or -17%
Hence, ans is OPTION D
Answer: D. $7,500
Explanation:
Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.
Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.
Answer:
$99.3625
Explanation:
The computation of ex-dividend stock price is shown below:-
Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)
= $105.64 - $7.75 × (1 - 19%)
= $105.64 - $7.75 × 0.81
= $105.64 - 6.2775
= $99.3625
Therefore for computing the ex-dividend stock price we simply applied the above formula.
• eqm Q = 175
• eqm P = $ 190
<u>Explanation:</u>
At current price, Quantity Demanded is less than Quantity supplied
As Qd = 200, Qs = 160
• so market is currently experiencing a deficiency, as Qd > Qs
•so to adjust, market price will incraese,
so that Quantity Demanded decrease & Quantity supplied increases, till Qd = Qs
• eqm Q = 175
• eqm P = $ 190
As if P falls by 1, then P = 194
Qd = 200 minus 5= 195
Qs = 160 plus 3= 163
If P = 193, Qd = 190, Qs = 166
If P = 191, Qd = 180, Qs = 172
P = 190, Qd = 175, Qs = 175
