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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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On his way home from work, Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his
Anika [276]

Answer:

Neighbourhood centre

Explanation:

A neighbourhood centre is a place where local local residents have access to a wide range of services. People gather for group activities, social support, public information and so on.

Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his suit. He did not have to move his car because next door was a gift shop where he could pick up a gift for his niece. Conveniently enough, next door to that store was a supermarket, where he purchased essentials like milk and cornflake cereal.

Phil is at a neighbourhood centre where wide variety of services are provided locally.

7 0
3 years ago
Read 2 more answers
Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business
lyudmila [28]

Answer:

A corporation had the following assets and liabilities at the beginning and end of this year.

                                                     Assets             Liabilities

Beginning of the year             $ 76,500             $ 32,796

End of the year                           132,000               53,460

    Details                                                a           b        c       d

1 Beginning of the year Equity    43,704      43,704    43,704     43,704

2 Owner's investment (+)                 -         -           45,000      35,000

3 Dividends (-)                                 -          10,200        -     10,200

4 Net income / loss (+)               34836     45,036     -10164       10,036

5 End of the year Equity          78540      78540      78540      78540

Explanation:

Equity = Assets - Liability

Beginning of the year = 76500 - 32796 = $43,704

End of the year = 132000 - 53460 = 78540

Net income = End of year equity -  (Beginning of the year Equity + Owner's Investment - Dividends)

a) Net income = 5 -  (1 + 2 - 3)

                   = 78540 - (43704  + 0 - 0)

                   = 34,836

b) Dividend of 850 per month = 850 * 12 = 10,200

Net income = 5 -  (1 + 2 - 3)

                   = 78540 - (43704  + 0 - 10200)

                   = 45,036

c) Net Income = 5 -  (1 + 2 - 3)

                       = 78540 - (43704  + 45000 - 0)

                       = -10,164

d) Dividend of 850 per month = 850 * 12 = 10,200

Net Income = 5 -  (1 + 2 - 3)

                     = 78540 - (43704  + 35000 - 10200)

                       = 10,036

Owner's investment increases equity

Dividends reduce equity

Net Income increases equity

6 0
3 years ago
When a company maintains its price but removes or prices separately one or more elements that were part of the former offer, suc
fomenos

The name which is given to the process when a company maintains its price but removes or prices separately is known as E. unbundling

<h3>What is Price?</h3>

This refers to the attached value which is given to a good or service that is exchanged for that particular value.

Hence, we can see that when a company removes freebies such as free delivery or installation but maintains its price is known as unbundling and is a market activity.

Read more about marketing here:

brainly.com/question/25754149

8 0
2 years ago
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6 0
3 years ago
Read 2 more answers
Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 30%. Then Andy deposits $1,000 of cash into h
ratelena [41]

Answer:

excess reserves after lending  = $900

so correct option is C) $900

Explanation:

given data

reserves = $800

reserve ratio = 30%

deposits = $1,000

bank lends = $600

to find out

That bank can lend an additional

solution

first we get required reserves from new deposit that is express as

required reserves  = deposit × reserve ratio      ......................1

put here value

required reserves  = $1000 × 30%

required reserves  = $300

and

now excess reserves from new deposits will be  

excess reserves = deposits - required reserves     .......................2

put here value

excess reserves = $1000 - $300

excess reserves  = $700

and

total excess reserves  will be here

total excess reserves = old excess reserves + new excess reserves     ...........3

put here value

total excess reserves =  $800 + $700

total excess reserves = $1500

so that

excess reserves after lending is here express as

excess reserves after lending  = excess reserves - amount given to Molly   ..........................4

put here value

excess reserves after lending  = $1500 - $600

excess reserves after lending  = $900

so correct option is C) $900

3 0
3 years ago
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