Consider a $40,000 portfolio consisting of three stocks. Their values and expected returns are as follows: Stock Investment Expected Return A $ 5,000 15 % B 15,000 8 C 20,000 23 What is the weighted-average expected return on the portfolio?

Answers

Answer 1

Answer: 16.38%

Explanation:

The weighted average return of the portfolio is calculated (as implied) by taking the weights of the different stocks and multiplying by their returns.

= (5,000/40,000 * 15%) + (15,000/40,000 * 8%) + (20,000/40,000 * 23%)

= ‭0.01875‬ + 0.03 + ‭0.115‬

= ‭0.16375‬

= 16.38%


Related Questions

refers to everything your customer see when interacting thing with your business.​

Answers

Answer:

feedback on customer service

Curtis purchased inventory on December 1, 2020. Payment of 250,000 stickles was to be made in sixty days. Also on December 1, Curtis signed a contract to purchase §250,000 in sixty days. The spot rate was §1 = 0.33682, and the 60-day forward rate was §1 = $0.36842. On December 31, the spot rate was §1 = 0.32438 and the 30-day forward rate was §1 = 0.36386.



At what amount should the Forward Contract account be recorded on December 1?

Answers

Answer: $0

Explanation:

Forward contracts get their value from the cost and on December 1, there was no cost to Curtis as he Curtis had just signed the contract.

This means that the amount that should be recorded for the Forward Contract should be $0. Even though the contract is valued at $0, it will still need to be credited against the amount to be received to at least recognize that a forward contract was entered into.

Why are single stock so dangerous as investments? Can you provide current market examples that have the potential to destroy portfolios based on single stocks? (name the stock)
Why should you be debt free before you begin long-term investing?
If you could create the perfect mutual fund, what companies would you put in it?

Answers

Answer:

There are two rules to investing. Rule number one, don’t lose money. Rule number two, see rule number one.” Individual stocks are far riskier than a well-diversified basket of stocks. According to Cambridge Associates, during the 10 year period ended June 30, 2013, 55 stocks in the S&P 500 lost at least half of their market value.

Explanation:

Jana estimates that if it issues new common stock, the floation cost will be 15%. Jana incorporates the floation cost into the division's growth approach, What is the estimated cost of newly issued common stock, taking into account the floation cost?Pertinent information:firms tax rate=40%Jana's coupon=12%, semiannual, noncallable bond with 15 years remaining to maturity is $1,153.72. no short term interest bearing debt.current price of the firms 10%, $100 par value, quarterly dividend, perpetual preferred stock is $116.95. Jana would incur flotation costs equal to 5% of the proceeds on a new issue.Jana's common stock selling at $50/share. Last dividend was $3.12 and dividends are expected to grow at a constant rate of 5.8%. Jana's beta=1.2, yield on t-bonds=5.6%, market risk premium is estimated to be 6%. The firm uses a 3.2% risk premium

Answers

Answer:

The cost of newly issued common stock will be 5.8% after incorporating the effect of flotation cost.

Explanation:

WACC is the cost of capital of all the sources of finance. This cost of capital should consider all the sources of finance. Jana should include long term debts and equity financing costs to identify the Weighted average cost of capital. Preferred stocks are also added in the calculations.

Describe what companies can do to prepare employees for layoffs and to reduce their potential negative effects?

Answers

Answer:

Generally companies engage in massive layoffs because economic times are hard, but evidence show that massive layoffs actually do not benefit companies, instead it hurts them in the long run.

According to a study made by the Harvard Business Review, 45% of Fortune 500 companies carried out layoffs on a normal basis and 65% did it during the great recession. But that didn't help them become more profitable, nor more productive. Actually, the study showed that companies that engage in massive layoffs suffer financially for at least 3 years after the layoffs have been made. Remember that layoffs in America are rather simple and cheap to do, the negative effects of layoffs last longer in countries where firing people is expensive.

Most companies start firing employees because things are not going well and they are used as a way to cut costs. But even though firing people in the US is not expensive, hiring and training new employees is. Some companies like Toyota or Honda rarely fire anyone. Toyota aversion for layoffs is so great that it hasn't manufactured any cars in Venezuela for more than 7 years already, and it hasn't fired any employee. It rather relocated them to other countries after receiving more training.

Massive layoffs result in lower job satisfaction, organizational commitment and overall job performance. So any money saved by cutting jobs is lost by lower efficiency. Some universities have pointed out that the negative effects of massive layoffs can last up to 20 years. Remember that people are involved, not machines. When people feel disappointed and betrayed they will not behave in the same way. Negative effects tend to last much more than positive effects, e.g. wage increase which is seem as natural and fair.

What can be done:

Think like Toyota. If you know that X number of employees will not be needed in the future, retrain them and transfer them to areas where they can be useful. E.g. AT&T engages in a massive retraining policy for future unnecessary employees and managed to relocate 100,000 of them in 7 years. That actually boosted AT&T's productivity, increased its revenues and decreased costs. They were able to retain talent and boost morale.

When laying off employees is unavoidable and unforeseeable (which is rarely the case), companies should offer their employees a fair way out. They should also avoid making other remaining employees feel uncomfortable or that they are next in line to be laid off.

Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $3.85, what is the current share price?

Answers

Answer:

P0 = $92.57889 rounded off to $92.58

Explanation:

Using the two stage dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  + [(D0 * (1+g1)^n * (1+g2)  /  (r - g2))  /  (1+r)^n]

Where,

D0 is the dividend just paid r is the required rate of return g1 is the initial growth rateg2 is the constant growth rate in dividends

P0 = 3.85 * (1+0.24) / (1+0.12)  +  3.85 * (1+0.24)^2 / (1+0.12)^2  +

3.85 * (1+0.24)^3 / (1+0.12)^3  +  

[(3.85 * (1+0.24)^3 * (1+0.05) / (12 - 0.05)) / (1+0.12)^3]

P0 = $92.57889 rounded off to $92.58


What is the best strategy to avoid paying interest on your credit cards?
A. Pay the minimum balance each month.
B. Have credit cards from two different banks.
C. Make payments online.
D. Pay the full balance each month.

Answers

D is the correct answer
D)pay the full balance each month

Which of the following is a function of a human resources department? O planning for materials needs O setting strategic policies O administering compensation interpreting the legality of accounting practices​

Answers

Answer:

O administering compensation

Explanation:

The human resources department or the HR is the department responsible for employees' management in an organization.  Employees are the human resources in the organization. The HR's main task is to attract, train, and retain the best employees for the company.

Other functions of the Human resources department include

Recruiting and placing the right person for the right position.Managing the employee compensation schemeEnsure compliance with labor lawsTraining and building employee's capacityCreating and maintaining a good employer-employee relationship.

In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover?a. February 2017-January 2018 b. March 2017-February 2018 c. December 2017-November 2018

Answers

Answer:

I believe that your question is missing a couple of options. I searched for similar questions and they all included the one option I am looking for (see attached image):

If the budget is continuously updated, checked and revised every quarter, and the company's tax year ends December 31, then the next first quarter is going to be January - March. This means that at the end of March, the budget will be revised and updated, and these changes will apply to the following year which stars on April 2017 and ends on March 2018.

The correct option would be:

April 2017 to march 2018.

In order for option A to be correct, the company's tax year should end on October. For option B to be correct, the tax year should end on November. Finally, for C to be correct, the tax yer should end on August.

Which of the following is not an example of a multichannel retailer?

Answers

Answer:A

thats the one

Explanation:

McDonals is the example of multichannel retailer as the company is providing burgers and fries to its different outlets and in diffrent food ordering sites in many countries.

What is multichannel retailer?

The technique of selling similar products over multiple channels and platforms is known as multichannel commerce.

The platforms can be both online and offline, with different channels such as brick and mortar stores, online stores, mobile stores, and mobile app stores.

Thus, McDonals is the example of multichannel retailer.

For more details about multichannel retailer, click here

https://brainly.com/question/13125283

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Taisha operates equipment to transfer oil from one container to another. Her job title is best described as

Spencer manages the flow of electricity through substations and distribution lines. His job title is best described as

Mariko maintains cables and supporting structures for transmitting electricity. Her job title is best described as

Fred operates equipment to transfer hydrogen through pipelines. His job title is best described as

Answers

Answer:

she would be the pump opperater

Explanation:

Answer:pump operator

Power dispatcher

Electrical power-line repairer

Gas pumping station operator

Explanation:

Bayou Okra Farms just paid a dividend of $3.85 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 12 percent for the first three years, a return of 10 percent for the next three years, and a return of 8 percent thereafter. What is the current share price?

Answers

Answer:

The answer is "$86.44".

Explanation:

The more recent dividends paid [tex]= \$ \ 3.85[/tex]

Level of growth [tex]= 4 \%[/tex]  

Required returns level for a first 3 years = 12 [tex]\%[/tex]

Required returns rate for year 3 to year 6 = 10 [tex]\%[/tex]

Required returns level after years 6= 8 [tex]\%[/tex]

Formula:

[tex]\text{Value of stock}= \frac{ \text{Last Dividend} \times (1+ Growth \ rate)}{\text{(Required rate of return - Growth Rate)}}[/tex]

Divididend payment for year O to year 6 is calculated below:

Year                            [tex]0 \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 5 \ \ \ \ \ \ \ \ \ \ \ 6[/tex]

Rate of return needed             12[tex]\%[/tex]        12[tex]\%[/tex]          12[tex]\%[/tex]          10[tex]\%[/tex]            10[tex]\%[/tex]      10[tex]\%[/tex]    

Collection of dividend[tex]\$ \ 3.85 \ \ \ \ \ \ 4.00 \ \ \ \ \ \ 4.16 \ \ \ \ \ \ 4.33 \ \ \ \ \ \ 4.50 \ \ \ \ \ \ 4.68 \ \ \ \ \ \ 4.87[/tex]  Benefit of terminal                                                                                  126.6584  

Dividend purchase price  3.58       3.32          3.08      3.08      2.91        2.75     Terminal value at year-end 3                         95.16

Present dividend value         67.73    

Value of Stock                $86.44

How can the government use fiscal policy to promote full employment?
A
by decreasing taxation rates for corporations
B
by increasing the sale of government securities
by decreasing federal spending on education
D
by increasing the interest rates on reserves

Answers

The answer is B.....

Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.

Answers

Answer: See explanation

Explanation:

Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:

= $15.40 × 100/(100 + 8)

= $15.40 × 100/108

= $1540/108

= $14.26

Sales tax will be:

= $15.40 × 8%

= $15.40 × 8/100

= $15.40 × 0.08

= $1.23

The demand function for Schrecklichs is 200 - 4PS - 2PL and the demand function for LaMerdes is 200 - 3PL - PS, where PS and PL are respectively the price of Schrecklichs and LaMerdes. If the world supply of Schrecklichs is 150 and the world supply of LaMerdes is 150, then the equilibrium price of Schrecklichs is:_______.a. $12.50. b. $15. c. $5. d. $10. e. $20.

Answers

Answer:

c. $5

Explanation:

Demand = Supply

200 - 4PS -2P_L=150

4PS+2PL=50 ..........(1)

200-3PL-PS=150

3PL+PS=50 ..........(2)

Equation (1) x 3....6PL+12PS=150 ......(3)

Equation (2) x 2...6PL+2PS=100 ........(4)

On Equation (3) and (4)

On eqn (3) and (4)

10PS = 50

PS=5

Substitute Ps value in eqn (1)

4PS+2PL=50

4(5)+2PL=50

2PL = 50-20

2PL=30

PL=15

Thus, the Equilibrium price of Schrecklichs is C) $5

A rental car company bought a new fleet of midsize cars and sold off its old midsize cars because they had too many miles on them. Which type of project would this be considered?

Answers

Answer:

The options are:

A replacement projectAn expansion project

The correct answer would be:

A replacement project

Explanation:

In this specific case, the company is purchasing new assets in order to replace existing assets whose useful life is over. It is similar to buying a new computer system because the old one is obsolete and doesn't work anymore.

An expansion project would be to buy new cars in order to open new branches.

20 points pls help
Individuals you list on your job application who are willing to be contacted by your potential employer regarding your character and work ethic are referred to as _____.

acquaintances
character witnesses
references
employers

Answers

References is the answer, you usually put them in a CV

Answer:

References

Explanation:

These are people you will want to contact before your interview to let them know they might be contacted by the business today. As well as people you send thank you notes to or thank you "texts" nowadays

PLEASE HELP ILL GIVE BRAINLIEST ANSWER

James works as a distribution manager at a very large port. He oversees the storage of shipping containers that have been offloaded from large carriers and directs which trucking company will take the containers further along their path to the consumer. The pathway in the Transportation and Logistics cluster that James’s job falls into is _____.

Facility & Mobile Equipment Maintenance

Logistics, Planning and Management Services

Transportation and Operations

Warehousing & Distribution Center Operations

Answers

Warehousing & Distribution Center

Distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics.

The product cost concept includes the selling and administrative expenses in the cost amount to which the markup is added to determine product price. 1) True 2) False

Answers

Answer:

The product cost concept includes the selling and administrative expenses in the cost amount to which the markup is added to determine product price.

2) False

Explanation:

The product cost is made up of the following costs: direct labor, direct materials, consumable production supplies, and factory overhead.  It does not include selling and administrative expenses.  The total cost is then marked up to determine the product price at which it can be sold to customers.  The markup will then cover the other expenses incurred in running the business and the expected profit per unit.

Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, the stock is selling for $39 per share, what are your put options worth? What's your net profit?

Answers

Answer:

3000

1500

Explanation:

For each of the answers in this question I have added the formulas to solve them in the attachment below

1.

(45-39)*5*100

= 3000

2.

(45-39)-3 x5 x100

= $1500

You deposit $509 in a savings account and one year later you have $562. At the same time, the CPI increases from 126 to 143. What was your real interest rate, in percentage terms?

Answers

Answer:

real interest rate = -3.08%

Explanation:

real interest rate = nominal rate - inflation rate

nominal interest rate = [($562/$509) - 1] x 100 = 10.41%inflation rate = [(143/126) - 1] x 100 = 13.49%

real interest rate = 10.41% - 13.49% = -3.08%

since the real interest rate is negative, the investor actually lost money in real dollars. This means that the amount of goods that the investor could purchase before making the investment is higher than the amount of goods he/she will be able to buy after the investment.

At the end of the year a company has a $1,200 debit balance in Manufacturing Overhead. If this amount is considered immaterial, the company will a) make an adjusting entry by debiting Manufacturing Overhead Applied for SI,200 and crediting Manufacturing Overhead for $1,200. b) make an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200. c) make no adjusting entry because differences between actual overhead and the amount applied are a normal part of job costing and will average out next year. d) make an adjusting entry by debiting Manufacturing Overhead Expense for $1,200 and crediting Manufacturing Overhead for $1,200.

Answers

Answer:

b) make an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.

Explanation:

The ordinary treatment for the debit balance in the Manufacturing Overhead is to regard it as an under-absorbed cost, then the $1,200 will be debited to the Cost of Goods Sold while crediting the Manufacturing Overhead for $1,200.  Differences between actual overhead and the amount applied are not a normal part of job costing but process costing.  By debiting the Cost of Goods Sold, the manufacturing overhead would have been accounted for in determining the actual cost of the goods sold.

For a given aggregate demand curve, the specificed rate of spending growth is the growth rate of money:___________.(a) demand plus the growth in velocity, (b) supply minus the rate of growth in velocity, (c) demand minus the rate of growth in velocity, (d) supply plus the growth in velocity.

Answers

Answer:

(d) supply plus the growth in velocity

Explanation:

As we know that

The spending growth rate is

= Money supply growth rate + velocity growth

Here the spending growth rate is the rate when there is a rise of the amount i.e. incurred

The Money supply growth rate is the rate when there is a rise in the money i.e. pumped in the market

And, the velocity of the growth is the rate where the money in the system varies hands

Therefore the correct option is d.

Partner A earns $59,000 from a partnership. Partner B earns $48,000 but withdraws only $40,000. How much must Partner B report in his income tax return as income?

Answers

Answer: $48,000

Explanation:

The entire amount earned by Partner B is what is reported not just the amount they decide to withdraw so Partner B will record the entire $48,000 that they earned from the partnership.

Personal income taxes are made on gross figures not net which is why the full  amount is recorded.

if a business purchases items to sell during the year, the cost of any items that are not used or consumed are reflected

Answers

Answer:

"On the end of the year balance sheet" is the right response.

Explanation:

If a company is buying goods to sell and even certain merchandise remains unsold might become a component of storage again for the corporation. That balance of supply remains displayed on either the reserves side underneath current assets on what's on the ending accounting records and then this amount will be carried forward to that day.

If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
Portfolio required return
Suppose you are the money manager of a $4.59 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock Investment Beta
A $ 260,000 1.50
B 360,000 - 0.50
C 1,220,000 1.25
D 2,750,000 0.75

Answers

Answer: 11.27%

Explanation:

First calculate the portfolio beta which is a weighted average of the individual betas;

= (260,000/4,590,000 * 1.50) + (360,000/4,590,000 * -0.5) + (1,220,000/4,590,000 * 1.25) + (2,750,000/4,590,000 * 0.75)

= 0.827342

Use CAPM to calculate the required return ;

= risk free rate + beta ( market return - risk free rate)

= 3% + 0.827342(13% - 3%)

= ‭0.1127342‬

= 11.27%

9. What pointer appears when pointing to a hyperlink?

A. I-beam
B. Hand
C. Crosshair
D. Double arrow

Please help ASAP

Answers

Answer:

B. Hand

Explanation:

Hand pointer is a specific cursor, the one that looks like a hand, and with the index finger extended, like as it points to something.

The pointer shows the user the exact location of the cursor and helps him input the information.

The name pointer is given as it points the information to the user.

Zheng has her house built on the border of a public watercourse in a state that follows riparian rights theory. It can be said that she:_________ a. is entitled to have the water body maintained in its natural state by other owners. b. is entitled to use the water for any purpose she may require. c. is not entitled to use any water without obtaining an approval from a court of law. d. is entitled to use only as much water as was used by the previous owner of the land.

Answers

Answer:

a. is entitled to have the water body maintained in its natural state by other owners.

Explanation:

The Riparian law is usually applied the eastern states of the United States to determine who is legally allowed to use water.

Riparian law states that the owner of a property adjacent to a body of water has the right to use it.

The concept of natural flow states that each Riparian land owner can use water for domestic use and no more. If a owner uses it for other purposes, other Riparian owners can take legal action against them.

Each riparian land owner is supposed to use what they need for domestic purpose so that natural flow is maintained for other riparian users.

Dragnet inc. sold Treasury bond futures contracts when the quoted price was 96-25. When this position was closed out, the quoted price was 97-16. Determine the profit or loss per contract, ignoring transaction costs.

Answers

Answer:

$-9,100

Explanation:

Calculation to Determine the profit or loss per contract

As given:

Selling Price =$ 962,500

Purchase Price =$ 971,600

Using this formula

Gain / Loss = Selling Price - Purchase Price

Let plug in the formula

Gain / Loss= $962,500 - $971,600

Gain / Loss = $-9,100

Therefore the loss per contract will be $-9,100

How do you think social media influences the business world?

Answers

i aint never seen two pretty best friends

Answer:

It makes businesses have the chance to put their website out where a bunch of people will go and visit their business.

Explanation:

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