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Svetach [21]
3 years ago
9

A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last year the risk-free rate was

5% and equities performed very badly providing a return of −30%. The portfolio manage produced a return of −10% and claims that in the circumstances it was good.
Business
1 answer:
trapecia [35]3 years ago
5 0

Answer: See explanation

Explanation:

The formula to use here will be:

required rate = risk free rate + beta × (market return - risk free rate).

where,

risk free rate = 5%

beta =0.20.

market return = -30%.

Therefore,

required return = 5% + 0.20 × (-30% + -5%)

= 5% + 0.2(-35%)

= 5% - 7%

= -2%

Therefore, the return on portfolio should have been -2% but the portfolio manager produced a return of −10%

Since -10% is lower than -2%, we can deduce that the claim of the manager is wrong.

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You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s pape
Salsk061 [2.6K]

Answer:

Total number of copies that buy each morning is Q = 357.96

Explanation:

Given Data:

cost of per copy = $0.30

Buying cost for paper =$1.50

standard deviation = 57

mean = 285

service\ level = \frac{ profit}{profit + per\ copy\ cost}

service\ level = \frac{1.50-0.30}{(1.50-0.30 )+0.30}

service level = 0.80

z value for  80% is 1.28

Therefore total number of copies calculated as

Q = \sigma z + \mu

Q = 1.28\times 57 +285

Q = 357.96

8 0
3 years ago
Record the issuance of 3,100 shares of $20 par value common stock for $50,000 of inventory, $155,000 of machinery, and acceptanc
Phoenix [80]

Answer:

Dr Merchandise inventory 50,000

Dr Machinery 155,000

Dr Notes receivable 100,000

    Cr Common stock 62,000

    Cr Additional paid in capital in excess of par value 243,000

Explanation:

All outstanding stocks must be recorded at par value: 3,100 shares x $20 = $62,000. Any mount paid for the stocks in excess of par value must be recorded in the additional paid in capital in excess of par value account : $305,000 - $62,000 = $243,000

4 0
4 years ago
In which situation would a banker's draft be used?
MrMuchimi

Banker's draft can be used when the person making the payment wants money to be

available in the receiving bank's account.

<h3>What is bank draft?</h3>

Banker's draft is a a form of cheque that is given to a customer at the bank either for a purchase payment.

It can also be brought to another bank for remittance, it serves as evidence for transactions.

Therefore, a banker draft can be used when the person making the payment wants money to be

available in the receiving bank's account.

Learn more on bank's draft here,

https://brainly.com/question/6906511

6 0
2 years ago
onceptual Connection: For each situation, identify the possible root cause(s) of the activity cost (such as plant layout, proces
Minchanka [31]

Answer:

Explanation:

For each situation, identify the possible root cause or causes of activity cost, among these:

1. Plant Layout

2. Process design

3. Product design

(A) PROCESS DESIGN

The design of the process of production is the root cause of activity cost here. From the rates given, it's clear that the manual method of production costs more time and money than the mechanical production method.

A minor cause of activity cost here is the PRODUCT DESIGN; the cost of which varies with the use of labour and the use of machine.

(B) PRODUCT DESIGN

Change in design of the gear (removal of some component parts) reduces set up time and cost.

(C) PLANT LAYOUT

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3 0
3 years ago
which economies would you expect to rely LESS on foreign trade as a percentage of their economic activity
Artist 52 [7]

Answer: А. large, more heavily populated, economies like China

Explanation:

Larger countries like China and the US have a higher population which will mean that domestically, they produce quite a lot and so percentage wise would be able to rely less on foreign trade as they will produce a lot of things for themselves.

Smaller countries like Singapore however, will be unable to produce much of what they need and so will have to engage in foreign trade more than larger countries, percentage wise.

Mathematically speaking. Percentage wise, larger countries will rely less on foreign trade because foreign trade will be less compared to their large economies. The reverse is true for smaller countries.

4 0
3 years ago
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