Assume you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 26%. The T-Bill Rate is 3.5%. You have a new client who has $50,000 to invest in your portfolio and can borrow an additional $20,000 at the risk-free rate to also put in your portfolio. What is the expected rate of return of your new client’s portfolio?
Group of answer choices
21.50%
23.80%
20.30%
22.10%
None of the above
Answers
To calculate the expected rate of return of the new client's portfolio, we need to consider the allocation of the client's funds in the risky portfolio and the risk-free investment. The correct option is option "None of the above".
The expected rate of return of the client's portfolio can be calculated by weighing the expected returns of the risky portfolio and the risk-free investment according to their respective allocations.
Let's assume the client invests $50,000 in the risky portfolio and borrows an additional $20,000 at the risk-free rate. The total investment in the portfolio is $70,000.
The weighted expected return of the risky portfolio is calculated by multiplying the expected rate of return by the allocation in the risky portfolio: $50,000 / $70,000 * 18% = 12.857%.
The weighted expected return of the risk-free investment is equal to the risk-free rate: $20,000 / $70,000 * 3.5% = 1%.
To find the expected rate of return of the client's portfolio, we sum up the weighted expected returns of the risky portfolio and the risk-free investment: 12.857% + 1% = 13.857%.
Therefore, the expected rate of return of the new client's portfolio is approximately 13.857%.
None of the provided options matches the calculated expected rate of return, so the correct answer would be "None of the above."
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Related Questions
Divide whole numbers and decimals involves a repetitive process of estimating a quotient, multiplying and subtracting.
At each step multiply the divisor with the largest possible number, subtract it from the original number to get the remainder and bring one extra digit down, repeat the process till a remainder is obtained and no digits could be brought down.
Answers
Dividing whole numbers and decimals involve a repetitive process.The process of dividing whole numbers and decimals is described down.
Considering, to divide 67.5 by 4 the given instructions are for the whole numbers and decimals , estimating a quotient, multiplying, and subtracting. At each step multiply the divisor with the largest possible number, subtract it from the original number to get the remainder and bring one extra digit down, repeat the process till a remainder is obtained and no digits could be brought down
Now estimating the quotient which is 67.5/4 ~= 16.875.
Step 1: 4 x 16 = 64 (Subtract 64 from 67.5 to get 3.5) .
Step 2: 4 x 3 = 12 (Subtract 12 from 3.5 to get 1.5)
Step 3: 4 x 1 = 4 (Subtract 4 from 1.5 to get 0.5)
The remainder is 0.5, hence the answer is 16.875 remainder is 0.5
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what is a pumpkin bug
Answers
Answer:
The botanical name for squash bugs is Anasa tristis. This bug is very common in the USA and gets its common name from the fact that it is attracted to and lays its eggs on squash, as well as pumpkin plants. I've also seen the bugs on cucumber plants and other curcubits such as melons.
Explanation:
can
someone help with this related to dentistry?
what methods that can be used for filing patient
information?
what is the role of an inventory manager?
what is the purpose for managing accounts re
Answers
Methods that can be used for filing patient information in dentistry include electronic health records (EHRs), paper-based files, and dental practice management software. Each method has its advantages and considerations regarding confidentiality, accessibility, and ease of use.
The role of an inventory manager in dentistry is to oversee the procurement, storage, and distribution of dental supplies, equipment, and materials. They are responsible for maintaining optimal inventory levels, tracking usage, managing vendor relationships, and ensuring cost-effective inventory management practices. The purpose of managing accounts receivable in dentistry is to ensure timely and accurate billing and collection of payments from patients and insurance providers. This involves verifying insurance coverage, submitting claims, following up on outstanding payments, and implementing strategies to minimize accounts receivable aging and improve cash flow for the dental practice.
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How does M&S keep existing customers happy?
Answers
Answer:
Im not sure
Explanation:
What type of product/service management did Ray do?
Answers
The product/service management that Ray do was that He had made his design department to be able to design a furniture piece.
What was Ray doing?Product service management (PSM) is known to be a kind of a marketing function that is said to be based on making better a product or service due to market changes.
Note that involves an ongoing analysis of their features so that one can be able to improve as well as modify the items that are needed.
Ray in the above is carrying out marketing information management by gathering information from customers to use so that he can set up the theater system seats. The activities is one that entail pricing and the use of the channel management function.
Therefore, The product/service management that Ray do was that He had made his design department to be able to design a furniture piece.
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a special vfr clearance authorizes the pilot of an aircraft to operate vfr while within class d airspace when the visibility is
Answers
A special VFR clearance authorizes the pilot of an aircraft to operate VFR while within Class D airspace when the visibility is less than 3 statute miles but not less than 1 statute mile and clear of clouds.
A Special VFR (SVFR) clearance authorizes the pilot of an aircraft to operate under Visual Flight Rules (VFR) within Class D airspace when the visibility is at least 1 statute mile and the aircraft can maintain clear of clouds. When the visibility is less than 3 statute miles but not less than 1 statute mile and it is cloud-free, the pilot of an aircraft is permitted to operate VFR while in Class D airspace. When the visibility is at least one statute mile and the aircraft can stay clear of clouds, a Special VFR (SVFR) clearance allows the pilot to operate under Visual Flight Rules (VFR) in Class D airspace.
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What does indigenous technology mean?
Answers
Answer: I hope this is helpful mark brainlist if right then no if wrong
Explanation:
Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.Technologies employed by the native inhabitants of a country and which constitute an important part of its cultural heritage and should therefore be protected against exploitation by industrialized countries; the problem of indigenous knowledge has been discussed during the Rio Conference but it does not receive much ...Types of indigenous technology in India are; (i) Generic Drugs. (ii) Thorium based Nuclear Reactors. (iii) Plastic RoadsIndigenous Technology is created within a sensory environment that builds on our sense of relationship, meaning, balance, feeling, memory and place as well as sight, sound, smell, taste and touchIndigenization is the process by which Indigenous ways of knowing, being, doing and relating are incorporated into educational, organizational, cultural and social structures of the institution.One example of Indigenous Technologies in action today can be witnessed in differential approaches to medicine. Medical technologies in the Western Scientific sense of the term might conjure images of biomedical research labs, electromagnetic monitors or imaging systems such as CT or MRI scans.Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.
The LIFO reserve is the difference between the inventory valuation as reported under: Multiple choice question. LIFO and the amount that would have been reported under weighted-average. FIFO and the amount that would have been reported under LIFO. weighted-average and the amount that would have been reported under LIFO. LIFO and the amount that would have been reported under FIFO.
Answers
Answer:
One Of Them, I Think, Is Called The LIFO reserve
Explanation:
southwest is a private not-for-profit entity. it acquires northeast, another private not-for-profit entity. the acquisition value is $980,000. northeast has two assets (and no liabilities): equipment with a net book value of $120,000 but a fair value of $150,000 and a building with a net book value of $500,000 but a fair value of $800,000. in the future, northeast expects to receive some support through donations. nonetheless, the entity is not expected to be predominantly supported by these donations and any investment income earned. after the combination, what amount should be reported for goodwill?
Answers
The excess of the consideration transferred over the net identified assets bought is used to calculate goodwill. Transferred consideration = $980,000 Net identifiable .
assets purchased = $120,000 (fV for equipment) + $800,000 (fV for building) = $920,000 Goodwill = transferred consideration - net identified assets purchased $980,000 − $920,000 = Goodwill Goodwill equals $60,000 As a result, the amount stated for goodwill following the merger is $60,000. The excess of the consideration transferred over the net identified assets bought is used to calculate goodwill. Transferred consideration = $980,000 Net identifiable . southwest is a private not-for-profit entity. it acquires northeast, another private not-for-profit entity. the acquisition value is $980,000. northeast has two assets (and no liabilities): equipment with a net book value.
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Where have you seen marketing take place?
Answers
Answer:
Everywhere
Explanation:
The process or technique of promoting, selling, and distributing a product or service. Once there is a buyer, there will always be a marketer, be it the secretary, salesperson, etc.
The income tax rate in a state is a flat 10 percent. Based on that rate, who has the higher tax burden?
Annual Income
Alex - $20,000
Beatrice - $190,000
Julio - $80,000
Roberta - $60,000
Alex
Beatrice
Julio
Roberta
Answers
Answer:
Beatrice
Explanation: she makes the most money so she has to pay more in tax
Based on the tax rate and the annual income of the people, the person with the higher tax burden is Beatrice.
Flat Rate Tax Refers to when a specific rate of tax is imposed. Leads to those who are paid higher having a higher tax burden. Leads to lower income earners having less money after tax.Beatrice is the highest earner in the group as they earn $190,000. They will therefore have the highest tax burden of $19,000 as opposed to the others who have lower salaries.
In conclusion, Beatrice is correct.
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According to the video, what are some things Manufacturing workers can do to move up to supervisory and management positions? Check all that apply.
operating machinery
avoiding repetitive work
demonstrating knowledge
coming up with a better way to mass-produce a product
going to college
keeping machinery clean
Answers
Answer:
demonstrating knowledge
coming up with a better way to mass-produce a product
going to college
Explanation:
I got it wrong these are correct:(
The answers are /C, D, E/
/3, 4, 5/
"demonstrating knowledge",
"coming up with a better way to mass-produce a
product",
"going to college"
I want to give more credit to the other person for answering first, though
You're Welcome.
Please help I don’t understand 100 points
3. Prepare a T account for each transaction. Label the account title for each account affected. Use the chart of accounts you created in Question 1. Write the debit and credit amounts for each T account to show how the accounts are affected. The first one is done for you.
a. Start Microsoft Excel, and open the BUS113_03_05.xlsx file from C:\ACTT1\Data\Unit_3.
b. Click the File tab, and click Save As. Save the file to C:\ACTT1\Student\Unit_3.
c. Received cash from owner, Roger Fisher, as an investment, $10,000.00.
d. Paid cash for insurance, $2,400.00.
e. Bought supplies on account from Boats Wholesale, $1,500.00.
f. Sold services on account to Salmon Slayers, $600.00.
g. Paid cash for fuel, $500.00.
h. Paid cash to owner, Roger Fisher, for personal use, $1,250.00.
i. Save and close the spreadsheet.
j. Submit your file to your instructor for grading.
Answers
The preparation of a T-account for each transaction is as follows:
CashAccount Titles Debit Credit
c. Capital, Roger Fisher $10,000
d. Insurance Expenses 2,400
g. Fuel Expenses 500
h. Withdrawal, Roger Fisher 1,250
Capital, Roger FisherAccount Titles Debit Credit
c. . Cash $10,000
Insurance ExpensesAccount Titles Debit Credit
d. Cash $2,400
SuppliesAccount Titles Debit Credit
e. Accounts Payable (Boats
Wholesale) $1,500
Accounts PayableAccount Titles Debit Credit
e. Supplies $1,500
Accounts ReceivableAccount Titles Debit Credit
f. Services Revenue $600
Services RevenueAccount Titles Debit Credit
f. Accounts Receivable $600
Fuel ExpensesAccount Titles Debit Credit
g. Cash $500
Withdrawals, Roger FisherAccount Titles Debit Credit
h. Cash $1,250
What is a T-account?A T-account is an informal accounting term that describes a ledger account used to post business transactions after being recorded in journals.
T-accounts subsist on the double-entry system of accounting where a transaction has debit and credit aspects.
Transaction Analysis:c. Cash $10,000 Capital, Roger Fisher $10,000
d. Insurance expenses $2,400 Cash $2,400
e. Supplies $1,500 Accounts Payable (Boats Wholesale) $1,500
f. Accounts Receivable (Salmon Slayers) $600 Services Revenue $600
g. Fuel $500 Cash $500
h. Withdrawal, Roger Fisher $1,250 Cash $1,250
Thus, the transactions from c to h have been recorded in their T-accounts.
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What is something that will not help you get a higher credit limit?
A: Paying off the balance of the credit card each month
B: Asking the banking company for a higher limit on your credit card
C: Maxing out the credit card and only making the minimum payment each month
D: Making more money at your job (More personal income)
Answers
Maxing out the credit card and only making the minimum payment each month is something that will not help you get a higher credit limit. A credit limit is the most money you are permitted to spend on a credit card or line of credit by a lender.
If a credit card company grants you a credit limit of $2,500, that is the most you may ever have charged to the card payment . If you charge $1,900 to your card, you will have $600 left over that you can use without paying a fee or being restricted from using the card limit further.
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Law of Supply states that, all other factors being equal, as the product price ________ the quantity of the product provided by sellers decreases.
Answers
Of A good or service increases
Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category?
Answers
Answer:
see below
Explanation:
The Zero-based budgeting technique assumes there will be no balance bought forward nor balance carried forward. Budget preparation for a particular period must start from zero or scratch. Each expense must be on merit. Income and expenses must match. In the zero-based budget, the difference between income and expenditure must be zero.
If Sam has an income of $800 and expenses of $675, she has to re-work her costs again to ensure they match her income. The zero-based budget demands she draws her expenses list again and comes up with a way of spending the $125 difference.
What is demand comprised of
Answers
If an employeeâs manager issued an explicit or strongly implied threat that submission to sexual demands is a condition of the employeeâs job, it would be an example of ________ harassment.
Answers
If an employee manager issued an explicit or strongly implied threat that submission to sexual demands is a condition of the employee's job, it would be an example of quid pro quo" harassment.
Protect individuals from discrimination based on characteristics such as race, nationality, religion, and gender. These rights are guaranteed to all citizens under the due process and equal protection clauses of the United States Constitution and the laws of Congress.
The Civil Rights Act of 1964 outlawed discrimination in employment based on race, color, national origin, religion, or sex, and the Equal Employee's Opportunity Commission was appointed to investigate discrimination and enforce the bill's provisions. established a meeting.
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A July sales forecast projects that 6,800 units are going to be sold at a price of $11. 30 per unit. Management forecasts 15% growth in sales each month. Total July sales are anticipated to be:
Answers
The total sales in July of the forecasts are $76,840.
What are the sales?
A sale refers to the act of exchanging goods or services for money or other valuable consideration. It is a transaction in which a seller agrees to transfer ownership of a product or service to a buyer in exchange for payment. The term "sale" can refer to a specific event or promotion in which products or services are offered at a discounted price or with other incentives to encourage purchases. Sales can take place in physical locations such as stores or online through e-commerce platforms.
To find the total sales in July, we need to first calculate the sales in each month and then add them up.
Sales in July: 6,800 units × $11.30 per unit = $76,840
Sales in August: 6,800 units × 1.15 × $11.30 per unit = $88,002
Sales in September: 6,800 units × (1.15)² × $11.30 per unit = $101,202.70
Sales in October: 6,800 units × (1.15)³ × $11.30 per unit = $116,383.61
Sales in November: 6,800 units × \((1.15)^{4}\) × $11.30 per unit = $133,718.05
Sales in December: 6,800 units × \((1.15)^{5}\) × $11.30 per unit = $153,408.76
Therefore, the total sales in July are $76,840.
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today, bruce and brenda each have $150,000 in an investment account. no other contributions will be made to their investment accounts. both have the same goal: they each want their account to reach $1 million, at which time each will retire. bruce has his money invested in risk-free securities with an expected annual return of 5 percent. brenda has her money invested in a stock fund with an expected annual return of 10 percent. how many years after brenda retires will bruce retire?
Answers
Today, Bruce and Brenda each have $150,000 in an investment account. Bruce will be able to retire 19.0 years after Brenda does.
What is an investment?An investment is an asset or item purchased with the goal of generating income or appreciation in value over time. Investments can take many forms, including stocks, bonds, real estate, commodities, mutual funds, and more.
Some investments may offer high returns but come with a high level of risk, while others may offer more modest returns but are relatively safe.
In the above case of investment, the Bruce will be able to retire 19.0 years after Brenda does.
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Singing Fish Fine Foods has a current annual cash dividend policy of $2.25. The price of the stock is set to yield a return of 10%. What is the price this stock if the dividend will be paid a. for 10 years? b. for 16 years? c. for 42 years? d. for 60 years? 6. for 100 years? 1. forever? a. What is the price of this stock if the dividend will be paid for 10 years? ( Round to the nearest cent.)
Answers
Singing Fish Fine Foods has a current annual cash dividend policy of $2.25. The price of the stock is set to yield a return of 10%.
Given information:
Current annual cash dividend policy of Singing Fish Fine Foods = $2.25
Price of the stock is set to yield a return = 10%
We are required to find the price of this stock if the dividend will be paid for 10 years.
We know that:
P(1+r)^n = D * [(1-(1+r)^-n)/r]
Where, P = Price of the stockr = ReturnD = Annual dividend n = Years
Let’s substitute the values in the above formula:
P = 2.25/(1+0.10)^1 + 2.25/(1+0.10)^2 + … + 2.25/(1+0.10)^10P = 2.25*[(1-1.1^-10)/0.1] / [(1.1)^10]P = $15.16 (rounded to the nearest cent)
Therefore, the price of this stock if the dividend will be paid for 10 years is $15.16.
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Thirsty Dog! Is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had
Answers
HELP QUICK PLEASE!!!!! William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement. Which investment option would best meet William’s needs?
a US savings bond
a savings account
a commodity
a certificate of deposit
Answers
What do federally funded grants require a student to do
Answers
Answer:
To have a financial need
Explanation:
In the United States, the federally funded grants require a student to have a FINANCIAL NEED before such funds can be granted to the student. For example Federal Pell Grants, Federal Supplemental Educational Opportunity Grants.
To access such grants, students will have to apply for the grant and submit the form after being filled in for proper evaluation.
Hence, in this case, the correct answer is Federally funded grants require a student "to have a financial need."
Type the correct answer in the box. Spell all words correctly.
Which pricing strategy involves setting a high price for an exclusive, high-end product?
The
pricing strategy involves setting a high price for an exclusive, high-end product.
Answers
Answer:
premium pricing strategy
Explanation:
plato
A schedule is useful for
a. Visualizing all your commitments
b. Solving workflow problems
C. Maintaining your responsibilities
d. All of the above
Answers
Answer:
The answer is D =All of the above
Answer:
DDDDDD
Explanation:
should healthy hearts include the extinguishment of debt (i.e.,the notes) in its precombination financial statements or should cool care include it in its postcombination financial statements?
Answers
Financial statements are written records that convey the business activities and the financial performance of a company. Government organisations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes.
What is Financial statements ?Financial statements are official records of a person, business, or other entity's financial situation and actions. An easy-to-understand format is used to provide pertinent financial data in a systematic manner.
Financial statements are intended to give information about an enterprise's financial situation, performance, and changes in financial position that will be helpful to a variety of users in making financial decisions. Financial statements must to be comprehensible, pertinent, trustworthy, and similar. An organization's financial situation is directly correlated with its reported assets, liabilities, equity, income, and expenses.
Financial statements are meant to be understood by those who are willing to study the information carefully and who have a basic understanding of accounting, business, and economics.
Government financial statements may be recorded, measured, and presented according to different rules than those that apply to businesses and even non-profit organisations. They can choose between the two accounting techniques of accrual accounting and cost accounting, or they can combine the two (OCBOA).
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What would CRM software help you
do?
Answers
CRM software can help you in the following ways.
They can help in streamlining deals and marketing efforts, manage client connections, and see to client satisfaction.Also, the capability to track client relations and data can help businesses optimize their operations and identify areas for improvement.What is CRM software?CRM software or Customer Relationship Management software is an important tool which was created to help businesses manage their relations with customers and potential customers.
It allows businesses to store client data like contact information, purchase history, and communication preferences, all in one centralized location.
This data gotten from the software can be analyzed and used to perceive how a customer behaves, his preferences, and needs.
Thus, a CRM tool can help businesses cultivate strong relations with their customers and drive long- term growth.
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consider the following data (in millions) from trident financial incorporated, which has two main divisions, mortgage loans and consumer loans:
Answers
Here is the process of analyzing data from two main divisions, Mortgage Loans and Consumer Loans, in a general way.
When analyzing data from Trident Financial Incorporated's Mortgage Loans and Consumer Loans divisions, you would want to compare the figures in millions to understand the performance of each division. You can examine the data by looking at aspects such as loan volume, revenue, and default rates. This will give you insights into the financial health of each division and help you identify trends or areas for improvement.
A mortgage loan is a type of loan used to purchase a home or property. When a person takes out a mortgage loan, they receive a lump sum of money from a lender, which is typically a bank or other financial institution. The borrower then repays the loan over a specified period of time, usually 15 to 30 years, with interest.
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You hire an experienced pet industry executive to consult with you both throughout the process. In your first meeting, she presents you with an initial market analysis and trend report.
The first decision you need to make is what type of retail format you think will be best for your new venture.
- Superstore
- Specialty store
- Category killer
- Specialty store
Answers
Answer:
Specialty store.
Explanation:
Since it's your new business and you surely don't want to incur a huge investment at this stage. So choosing the other stores such as superstores or category killers will be costly and moreover, they will be irrelevant to your business. Because why would you need to open a general store when your business is related to the pet industry?