Answer:
We can conclude that tuition rates at the local community college are rising faster than overall inflation.
This is because from 2015 to 2016, the overall price level rose 10%, from 200 to 2020 (20 is the 10% of 200), while tuition rates rose 15% in the same period, from $100 to $115 (15 is obviously the 15% of 100).
The first step in making a choice is to define the issue at hand. When making judgments, related costs and benefits should be evaluated. When making judgments, extraneous costs and advantages should be overlooked.
Answer:
Expected return of the portfolio = 8.57%
Explanation:
The expected return of the portfolio is the weighted average return of all assets in that portfolio, which is calculated as below:
The expected return of the portfolio = (Weight of U.S. government T-bills x Return of U.S. government T-bills) + (Weight of large-company stocks x Return of large-company stocks) + (Weight of small-company stocks x Return of small-company stocks)
= 47% x 4.08% + 38% x 11.38% + 15% x 15.53% = 8.57%
