Answer:
a) Portfolio ABC's expected return is 10.66667%
Explanation:
The expected return is based on the risk factor of a project. If a project has higher risk its rate of return will be higher. Portfolio ABC has one third of its funds invested in each stock. The return of on A and B are 20% and 10%. Their beta is 1.0 for both the stocks while stock C has beta 1.4. The portfolio expected return will be 10.66667%.
Answer:
n = ㏒ P ÷ ㏒ (1.08)
Explanation:
Compound interest rate
A = P × 
where
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
A = amount of money accumulated after n years, including interest.
n = number of years
Since we want the principle amount to double i.e., A = 2P
put this in above equation
2P = P ×
divide both sides by P, we get
P =
put r = 0.08
P = 
P = 
Taking log on both sides
㏒ P =㏒
㏒ P = n ㏒ (1.08)
n = ㏒ P ÷ ㏒ (1.08)
The answer to the question above is "brand names cause consumers to be more sensitive to product differences" based on the result of Roberto's taste test. In the blind test, Roberto did not feel the unsavory flavor from the generic store-coke and he prefers that generic store-coke. This test proves that Roberto's taste is distracted by the brand.
Answer:
Unlimited
Explanation:
GIven that:
You short-sell 200 shares of Tuckerton Trading Co
now selling for $50 per share.
If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the more loss you're going to accumulate.
From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.
∴
The maximum possible loss = 200 × 50( 1 - infinity share price)
= Unlimited loss
