I would say that it is a CHECKING ACCOUNT. The answer for this would be option A. This type of account can be accessed anytime which makes its liquidity very high, but on the other side, this has very low interest and the minimum balance required is also low. Hope this helps.
Answer:
The Margin of safety is $100,000
Explanation:
Price = Sales / number of units = $1,700,000 / 8500 = $200
Contribution margin ratio is the ratio of contribution margin to the sales value. It measure the ratio that contributes in the recovery of fixed cost and making profit.
Contribution margin ratio = Contribution margin / Sale price = $60 / $200 = = 0.3 = 30%
Break-even is the level of sales at which business has no profit no loss situation.
Break-even point = Fixed cost / Contribution margin ratio = $480,000 / 30% = $1600,000
Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.
Margin of Safety = Total sales - Break-even point = $1,700,000 - $1,600,000
= $100,000
Answer:
The correct answer is letter "A": I and III.
Explanation:
A Hedge Fund is a private investment fund that markets itself almost exclusively to wealthy investors. They are aggressive risk-seeking investment funds that typically use leverage to magnify returns. Hedge funds are not subject to the Investment Company Act of 1940 and profits usually from an annual management fee (usually 2%). Besides, most hedge funds charge a performance fee based on profits earned.
Answer:
65% of the portfolio is invested in stock.
Explanation:
The weight of stock is assumed to be x.
Then, the Weight of Risk-Free Stock will be 1 - x.
Beta of Portfolio =![x\ \times\ 1.17\ +\ [\ ( 1\ -\ x)\ \times\ 0]](https://tex.z-dn.net/?f=x%5C%20%5Ctimes%5C%201.17%5C%20%2B%5C%20%5B%5C%20%28%201%5C%20-%5C%20x%29%5C%20%5Ctimes%5C%200%5D)
0.76 = 1.17 x
x = 0.76 / 1.17
x =0.64957
x = 64.957%
So, 65% of the portfolio is invested in stock.
