Suppose you manage a $2 million fund that consists of four stocks with the following investments: Stock Investment Beta A $300,000 1.50 B 400,000 -0.50 C 600,000 1.25 D 700,000 0.75 If the market's required rate of return is 15% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
Answers
The necessary return on the money is 13.68%. The portfolio beta is the weighted average of the betas of each of the investments, where the weights are the fraction of the portfolio invested in each security.
The formula is:
Beta Portfolio= (Weight A x Beta A) + (Weight B x Beta B) + (Weight C x Beta C) + (Weight D x Beta D)
Beta Portfolio= (300,000/2,000,000 x 1.50) + (400,000/2,000,000 x (-0.50)) + (600,000/2,000,000 x 1.25) + (700,000/2,000,000 x 0.75)
Beta Portfolio= (0.15 x 1.50) + (-0.02 x 0.50) + (0.30 x 1.25) + (0.35 x 0.75)
Beta Portfolio= 0.225 - 0.01 + 0.375 + 0.2625
Beta Portfolio= 0.8525
Now, we can calculate the required rate of return using the CAPM (Capital Asset Pricing Model) formula. The CAPM formula is:
Required Rate of Return= Risk-Free Rate + Beta (Market Return - Risk-Free Rate)
Required Rate of Return= 7% + 0.8525 (15% - 7%)
Required Rate of Return= 7% + 0.8525 (0.08)
Beta Portfolio= (300,000/2,000,000 x 1.50) + (400,000/2,000,000 x (-0.50)) + (600,000/2,000,000 x 1.25) + (700,000/2,000,000 x 0.75)
Beta Portfolio= (0.15 x 1.50) + (-0.02 x 0.50) + (0.30 x 1.25) + (0.35 x 0.75)
Beta Portfolio= 0.225 - 0.01 + 0.375 + 0.2625
Beta Portfolio= 0.8525
Required Rate of Return= Risk-Free Rate + Beta (Market Return - Risk-Free Rate)
Required Rate of Return= 7% + 0.8525 (15% - 7%)
Required Rate of Return= 7% + 0.8525 (0.08)
Required Rate of Return= 13.68%
Therefore, the fund's required rate of return is 13.68%.
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Related Questions
the slope of a linear demand curve is: multiple choice question. the change in price divided by the change in quantity demanded. the change in quantity demanded multiplied by the change in price. the change in quantity demanded divided by the change in price. the change in price multiplied by the change in quantity demanded.
Answers
The slope of a linear demand curve is the change in quantity demanded divided by the change in price. This is also known as the price elasticity of demand. Option C is the correct answer.
A linear demand curve is a graphical representation of the relationship between the price of a product and the quantity of the product that is demanded by consumers. It is straight and has a constant slope, which indicates the price elasticity of demand.
The slope of a linear demand curve can be determined by calculating the change in quantity demanded divided by the change in price. This formula gives us the price elasticity of demand, which measures how sensitive consumers are to changes in price.
For example, if the price of a product increases by 10% and the quantity demanded decreases by 20%, the price elasticity of demand is 20% / 10% = 2. This means that for every 1% increase in price, there is a 2% decrease in the quantity demanded. Option C is the correct answer.
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Prepaid expenses require what type of adjusting entry? Question options: Matched Accumulated Accrued Deferral
Answers
Answer:
deferral
Explanation:
Adjusting entries are when changes are made to already recorded journal entries.
Categories of adjusting entries :
accrued revenuesaccrued expensesunearned revenuesprepaid expensesdepreciation.Prepaid expenses are payments made for services yet to be delivered.
For example, paying for a year's worth of subscription on your streaming service
Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral
when entering into an income based repayment plan option, a student must contact their ________ to select the repayment plan option
Answers
when entering into an income-based repayment plan option, a student must contact their student loan facilitator to select the repayment plan option.
What is income-based repayment?
A repayment strategy known as income-based repayment, or IBR, bases loan instalments on a proportion of the borrower's discretionary income rather than the whole amount owing. Midway through 2009, IBR initially became accessible.
One of four income-driven repayment schemes is IBR. Pay-As-You-Earn Repayment (PAYE), Income-Contingent Repayment (ICR), and Revised Pay-As-You-Earn Repayment are the others (REPAYE). For debtors who don't qualify for PAYE and are worried about the marital penalty and the absence of a payment maximum in REPAYE, IBR is typically a viable alternative.
IBR bases monthly student loan repayments on 15% of discretionary income. The amount by which adjusted gross income (AGI) surpasses 150% of the poverty line is referred to as discretionary income.
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answer the two questions in the screenshot pls:
Answers
Answer:
One high end product I want to buy in the future is a thread ripper. It is a processor which is one of the reasons why a computer will run. It is like the heart, it makes all the components work
the customer will want to know that the product is one of the most expensive out there but it is defiantly worth the money. you have to have a good enough mother board to run the thread ripper though. You also need DDR 4 ram at least which makes the computer components work faster and gets rid of lag of course
Explanation:
Select the correct answer. Which of these is an essential element of a formal email? A. sender's website B. date line C. subject line D. sender's home address
Answers
Answer:
The answer is C.
Explanation:
Email is an electronic method of sending mail to a friend, family, colleague, business partners, suppliers etc.
According to this question, the essential element of a formal email is Subject line(option C). The subject line give us the clue of what will be in the body of the mail. The subject line is like the title or the headline.
Option A is not correct because it is not usually in the mail. And this is the reason for the other incorrect options too.
Answer:
The answer is C
Explanation:
Jim and Jane purchased their house a year ago and have been transferred out of town. They paid $275,000 for the property and ended up after expenses with only $225,000. Their percentage of loss on the sale was:
Answers
Answer:
18%
Explanation:
Original cost: $275,000
Selling price: $225,000
Loss: $50,000
50,000/275,000=0.18
0.18x100=18%
:)
The Market Summary report lists all the products selling in each market of the industry, comparing each based on key performance metrics. Which index would we review the effectiveness of our Advertising decisions from last year?
Answers
To review the effectiveness of your advertising decisions from last year using the Market Summary report, you would examine the Advertising Effectiveness Index (AEI). The AEI is a key performance metric that compares the products sold in each market of the industry.
To analyze the AEI, follow these steps:
1. Locate the AEI column in the Market Summary report.
2. Identify your product's AEI value, which represents its advertising effectiveness in comparison to competitors.
3. Compare your product's AEI with other products in the same market segment to understand how well your advertising efforts performed relative to competitors.
4. Look for patterns or trends in the AEI values for all products in the market. A higher AEI indicates more effective advertising decisions.
5. Analyze the changes in AEI from the previous year to assess the impact of your advertising decisions. An increase in AEI signifies that your advertising decisions were more effective, while a decrease indicates the need for improvements.
By reviewing the Advertising Effectiveness Index in the Market Summary report, you can gain insights into the success of your advertising decisions from last year and identify areas for improvement in your future marketing strategies.
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Which of these events would be a result of inflation? a business reports a loss for a tax year
Answers
An events that would be a result of inflation is that company scales back its production. The Option C is correct.
What are inflation impact on company?Inflation is defined as an increase in the average price level of goods and services in an economy over time. When there is high inflation, each unit of currency buys fewer goods and services. As a result, businesses may struggle to maintain profit margins. Furthermore, consumers may reduce their spending, resulting in lower sales for businesses.
Inflation, on the other hand, can present opportunities for businesses. For instance, if prices rise faster than wages, businesses may be able to raise their prices without losing customers. Furthermore, inflation can stimulate demand for new products and services that assist people in dealing with rising prices.
Missing options "A. A business reports a loss for a tax year B. A CEO pays less in taxes than five years ago C. A company scales back production D. A company increases production as a result of growing demand"
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Answer:
C) A company scales back production
Explanation:
I got it right on the test
oscar works at jamba juice and gets paid california state minimum wage of $15.00 per hour. however, in the 1970s, the minimum wage was $1.60 per hour. is jerry better or worse off today compared to the california state minimum wage of $14.00 per hour?
Answers
The answer to the question: is jerry better or worse of with the minimum wage rate of $14.00 per hour could be find out by finding the "real minimum wage" which is obtained by dividing the nominal minimum wage rate with the average price level.
In the given scenario, regarding the worse and better off keeping the minimum wage rate of the state of California in context, jerry is worse off as the calculated minimum real wage is around $9.00, which is far lesser than the original minimum wage rate.
Jerry would be only better off in the scenario, if the real minimum wage rate was $15 or above than that, as he will not work below his reservation wage.
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is esports better than sports? Explain?
Answers
Answer:
Sports are better than esports
Explanation:
Sports are not only important for physical health but also for mental health.
Esports without a doubt
Cost of goods sold is used in the _____ of the days' payable outstanding formula because payables relate to the purchase of goods recorded at cost.
Answers
The cost of goods sold is used in the denominator of the days' payable outstanding formula because payables relate to the purchase of goods recorded at cost.
What is the Days' Payable Outstanding Formula?The Days' Payable Outstanding Formula is given by Accounts Payable X Number of Days/Cost of Goods Sold (COGS).
The cost of goods sold is the value of beginning inventory plus purchases or production minus the ending inventory.
Thus, the cost of goods sold is used in the denominator of the days' payable outstanding formula because payables relate to the purchase of goods recorded at cost.
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Joe borrows money for a fridge and pays $120.00 in interest for 24 months at a rate of
8%. How much money did he borrow?
Show work
Answers
Answer:
$750
Explanation:
Interest is calculated using the formula below.
I = p x r x t
where I= interest
P= principal amount
r= interest rate
t= time
In this case, interest is $120, P is not given, r = 8% t= time 2 years( 24 months)
It means $120= P x 8% x 2
$120= p x 0.08 x 2
$120= p0.16
P= $120/0.16
P=750
Joe borrowed $750
gen x managers are very able to provide employees with ....... balance because they want more of it themselves.
Answers
Gen X managers are well-positioned to provide employees with work-life balance because they have a personal desire for it themselves.
As members of Generation X, born between the early 1960s and early 1980s, they grew up in a time when dual-income families were becoming more common, leading to a greater emphasis on balancing work and personal life. Having experienced the challenges of juggling career and personal responsibilities, Gen X managers have a unique understanding of the importance of work-life balance. They recognize the value of time spent outside of work, maintaining personal relationships, pursuing hobbies, and taking care of their own well-being.
With this firsthand experience, Gen X managers are more likely to empathize with their employees' need for work-life balance and be supportive in creating a flexible work environment. They may offer options such as flexible working hours, remote work opportunities, or family-friendly policies, promoting a healthier work-life integration.
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Gen x managers are very able to provide employees with _____________ balance because they want more of it themselves.
food fanatics caters meals where its cost of producing an extra meal is $25. each of its meals sells for $20. at this rate, what should the company do?
Answers
Food Fanatics is currently selling their meals for $20 each, but the cost of producing an extra meal is $25. This means that for each additional meal produced and sold, the company is actually losing $5 ($25 cost to produce - $20 revenue from sale).
To address this situation, the company could consider raising the price of their meals to better cover their production costs. Alternatively, they could explore ways to reduce their production costs so that they can maintain their current pricing while still earning a profit.
If the company cannot find a way to increase revenue or reduce costs, they may need to consider whether it is financially viable to continue operating at a loss. They could potentially explore alternative revenue streams or adjust their business model to improve profitability.
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influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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according to one study, online negotiators were more satisfied with their outcomes and more confident in the quality of their performance because of the absence of differences in the quality of economic outcomes relative to face-to-face negotiations
Answers
Focuses harder on hiding any hint of failure.
Clarification:
This is essentially a social cycle through which reliant individuals with clashing interests figure out how they will designate assets or work together from here on out. It is additionally characterized as conversation interaction or systems by which at least two gatherings go for the gold arrangement.
A Group of people
This is essentially viewed as any individual or gathering of people who are not straightforwardly engaged with, impacted, or impacted by a discussion.
The impact of the crowd on moderators incorporates making them to
1. Invest more effort and act harder that is Assuming they realize they are under observation, arbitrators will utilize distributive dealing way.
2. Look for positive responses.
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why does producer surplus exist?some producers are willing to produce at a price that is below the equilibrium price.
Answers
Producer surplus exists when producers can sell goods at a price above their cost of production, earning a profit. It indicates profitability, encourages investment, and fosters economic growth.
Producer surplus exists because some producers are willing to produce at a price that is below the equilibrium price. The equilibrium price is the market price where the demand for goods and services is equal to the supply of goods and services. Producers who can produce goods at a lower cost than the equilibrium price can sell their goods at a price that is above their cost of production and earn a surplus, which is the difference between the price they receive and the cost of production.Producer surplus is the difference between the amount a producer is willing to accept for a good or service and the amount they actually receive. Producers who can produce goods at a lower cost than the equilibrium price can sell their goods at a price that is above their cost of production and earn a surplus, which is the difference between the price they receive and the cost of production.Producer surplus is important because it indicates the level of profits that producers can earn from their production activities. When there is a producer surplus in a market, it means that producers are able to earn a profit from their production activities. The existence of producer surplus can also encourage producers to increase their output and invest in new technologies and processes, which can lead to further economic growth.For more questions on economic growth
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I will mark as brainliest! PLEASE HELP ASAP!¹
Net value is:
a. the total value of the portfolio
b. a share price of the mutual fund
c. the total value of bonds in the portfolio
d. none of the above
¹if applicable and appropriate
Answers
Answer:
b
Explanation:
The correct answer would be a share price of the mutual fund.
The Net Asset Value (NAV) is defined as the total assets less the total liability of a mutual fund or an exchange-traded fund. Mathematically, it is represented as:
NAV = asset's value - liability's value
The net asset value, when it concerns the mutual fund is represented on a per-share basis and is used to determine the value of assets held by investors.
Hence, the net asset value can be viewed as a share price of the mutual fund.
Correct option: b
what activities does marketing involve besides selling?
Answers
Answer:The activities involved in marketing are
Product and Service Selection. A manufacturer or service provider ideally listens to its customers and prospects before making product and service decisions.
Product or Service Pricing
Product Placement Activities
Incentives and Promotional Activities.
Explanation:
Target's Market Pantry is an example of which of the following brand types?
Private label brand
Generic
Name brand
Corporate brand
Answers
Answer:
Name brand. hope this helps
Question 1 [40 marks] The above schematic diagram shows an electric motor with power of 7.5 kW and a speed of 720rpm driving a hoist through a gearbox. The wire-rope from the drum passes through an overhead smooth pulley before connecting to the load of 600 kg. a) Calculate the tension in the wire-rope if the 600 kg load is moving at a constant speed of 5 m/s. (Ignore the mass of wire-rope). Hence calculate the rotational speed of the drum hoist. b) Calculate the torque at the coupling to drive the drum. c) Select a suitable chain drive to replace the gearbox for this application. Given that the pitch diameter of the wheel sprocket should be less than 350 mm and the centre distance between the sprockets of the chain drive should not exceed 500 mm. d) Select suitable bolts to secure the pulley bracket. Assume allowable tensile stress for the bolt material is σmax=45MN/m2
Answers
a. The tension in the wire-rope is 5880 N. The rotational speed of the drum hoist is approximately 191.13 RPM.
b. The torque at the coupling to drive the drum is approximately 99.47 N·m.
c. It is not possible to determine a suitable chain drive.
d. We can choose bolts that have a tensile strength exceeding this value to ensure the safety of the pulley bracket.
a) To calculate the tension in the wire-rope, we can use the equation:
Tension = (mass × acceleration) + (mass × gravity)
Mass (m) = 600 kg
Acceleration (a) = 0 m/s² (since the load is moving at a constant speed)
Gravity (g) = 9.8 m/s²
Tension = (600 kg × 0 m/s²) + (600 kg × 9.8 m/s²)
Tension = 0 + 5880 N
Tension = 5880 N
The tension in the wire-rope is 5880 N.
To calculate the rotational speed of the drum hoist, we can use the formula:
Rotational Speed (in RPM) = (Speed × 60) / (2π × Radius)
Speed = 5 m/s (constant speed of the load)
Radius (R) = 0.5 m (since the rope passes through an overhead smooth pulley)
Rotational Speed = (5 m/s × 60) / (2π × 0.5 m)
Rotational Speed ≈ 191.13 RPM
The rotational speed of the drum hoist is approximately 191.13 RPM.
b) To calculate the torque at the coupling to drive the drum, we can use the formula:
Torque = Power / Rotational Speed
Power = 7.5 kW
Rotational Speed = 720 RPM
Convert Power to watts:
Power = 7.5 kW × 1000 = 7500 W
Convert Rotational Speed to radians per second:
Rotational Speed = 720 RPM × (2π / 60)
Rotational Speed ≈ 75.4 rad/s
Torque = 7500 W / 75.4 rad/s
Torque ≈ 99.47 N·m
The torque at the coupling to drive the drum is approximately 99.47 N·m.
c) To select a suitable chain drive, we need to consider the given constraints:
Pitch Diameter of the Wheel Sprocket < 350 mm
Centre Distance between the Sprockets ≤ 500 mm
Based on these constraints, we can choose a suitable chain drive system that satisfies these requirements. The required gear ratio and the specifications of the hoist system is not provided, it is not possible to determine a suitable chain drive.
d) To select suitable bolts to secure the pulley bracket, we need to consider the allowable tensile stress for the bolt material (σmax = 45 MN/m²).
Based on this allowable stress, we can choose bolts that have a tensile strength exceeding this value to ensure the safety of the pulley bracket. The specific type, size, and grade of the bolts will depend on the application requirements and the load-bearing capacity needed for the pulley bracket.
It is recommended to consult engineering standards and guidelines or seek assistance from a professional engineer to select the appropriate bolts for the specific application.
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Negative externalities that might occur in the south african economy due to the war of ukraine and russia
Answers
South African economy may experience negative externalities due to the Ukraine-Russia war, including higher energy prices and disruptions in global trade.
What are some potential negative impacts on South Africa's economy due to the Ukraine-Russia war?Higher energy prices and disruptions in global trade resulting from the Ukraine-Russia war can have negative externalities on the South African economy. South Africa heavily relies on imported energy resources, such as oil and gas, and any escalation in the conflict could lead to increased energy prices. This would not only affect domestic consumers but also businesses, as higher energy costs can impede production and hinder economic growth.
Furthermore, the war may cause disruptions in global trade, as trade routes and supply chains could be affected. South Africa relies on international trade for both imports and exports, and any disturbances in trade flows can have detrimental effects on the economy. Reduced access to important imports or the inability to export goods can lead to economic instability, job losses, and decreased foreign exchange reserves.
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A tire manufacturer has recently discovered that numerous lots of tires
produced at one of their plants over recent months used a defective synthetic
material. The result was that these tires are far too likely to rupture at much
lower air pressure levels than normal. This has led to many accidents,
including some fatalities. The company has not been able to determine why
the material was defective. Which of the following is likely to be true in this
situation?
O A. The manufacturer as a company will be liable to pay significant
amounts of money to those harmed by the defective tires.
O B. Because it is not clear why the material is defective, the
manufacturing company themselves cannot be held responsible.
C. If the company can recall all defective tires as soon as it has
discovered its fault, it will not be held liable for the accidents that
already took place.
O D. The company is obligated to find the individual responsible for the
defective material so that he or she can be punished.
Answers
Answer:
A. The Manufacturer
Explanation:
A PEXXX
a company paid $0.70 in cash dividends per share. its earnings per share is $2.70, and its market price per share is $27.00. its dividend yield equals: multiple choice 38.6%. 10.0%. 25.9%. 3.9%. 2.6%.
Answers
A company paid $0.70 in cash dividends per share. its earnings per share is $2.70, and its market price per share is $27.00. its dividend yield equals is 2.6%.
To calculate the dividend yield, we need to divide the annual cash dividend per share by the market price per share and multiply by 100 to express it as a percentage.
Dividend Yield = (Cash Dividends per Share / Market Price per Share) * 100
In this case, the company paid $0.70 in cash dividends per share, and the market price per share is $27.00.
Dividend Yield = ($0.70 / $27.00) * 100 ≈ 2.6%
Therefore, the correct answer is 2.6%.
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What happens if The People do not know what they want, or are just plain ignorant?
Answers
Answer:
Then, like civilizations before, we will descend into chaos and death where the only food is other people and war will ravage our already-dying planet, eventually the human race will die off as it should, because we are the virus plaguing our once-beautiful planet.
Explanation:
Or the government will just decide for us.
Economists study supply and demand. Demand is the amount of a good or service that someone is willing and able to buy at a certain price. What are 2 things that you have a demand for? in other words, what are two things that you are willing and able to buy?.
Answers
The quantity of an item that customers are willing and able to buy at various prices at a specific time period and location is known as demand in economics. The demand curve is another name for the connection between price and quantity demand.
What Is the Law of Supply and Demand?According to the law of demand, demand for a good or resource will decrease as its price increases and increase as its price decreases.
According to the law of supply, on the other hand, higher prices tend to increase an economic good's supply while lower ones tend to reduce it.
The intersection of the supply and demand curves, which balances supply and demand, is a visual representation of the market-clearing price.
The product's price elasticity refers to the extent to which changes in price translate into changes in demand and supply. The demand for needs is comparatively inelastic, meaning that it responds less quickly to price changes.
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if a food service worker follows directions how long does i take to was her hand
Answers
Answer:
30 seconds i think
Explanation:
plz give brainliest
(Table) If the toy-making firm in the table faces a market price of $20 in the short run it should:
a) produce 76 toys.
b) produce 96 toys.
c) shut down.
d) produce 40 toys
Answers
The toy-making firm in the table should be shut down when it faces a market price of $20 in the short run. Option C is correct.
A production planning period where at least one input remains fixed while the rest are subject to change is referred to as the Short run. When a business wants to achieve the target within a short duration due to the sudden or seasonal demand for a specific product then the Short run works.
An example of a short run is when a company ABC, which can produce 10 cars in a day and looks to produce more cars (15 cars per day) by using the available infrastructure due to increased demand during the season is said to be a short run. Examples of short-run costs are
Raw materials prices for raw materials.Rent for land or buildings.Wages and salaries for labor.Interest and dividends for the use of financial capital (loans and equity investments)To learn more about the short run:
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A whole supermarket shelf of snack food bags is marked, "Frito-Lay." This is an example of a(n)
brand.
a. co brand
b. individual
c private
d. wholesale
e. family
Answers
please help me!!! I literally have no clue what it is
Answers
Answer:
Critical Thinking,Mathematics, and Operation and Control.
Explanation: