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SVETLANKA909090 [29]
1 year ago
9

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal p

robabilities of .5. The alternative risk-free investment in T-bills pays 6% per year.
a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio? (Round your answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

Price________$

b.Suppose that the portfolio can be purchased for the amount you found in (a). What will be the expected rate of return on the portfolio? (Round your answer to the nearest whole number. Omit the "%" sign in your response.)

Rate of return______%

c.Now suppose that you require a risk premium of 12%. What is the price that you will be willing to pay? (Round your answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

Price_______$
Business
1 answer:
xenn [34]1 year ago
4 0

Answer:

A) 964,286

B) 14

C) 750,000

Explanation:

The portfolios expected return = (0.5 x $70,000) + (0.5 x $200,000) = $35,000 + $100,000 = $135,000

If the risk free investment yields 6% per year, and you require a risk premium of 8%, then the total interest rate that the portfolio yields must be 6% + 8% = 14%

you will be willing to pay: $135,000 / 14% = $964,286 for the portfolio

if the risk premium increase by 4%, then the price of the portfolio will decrease to: $135,000 / 18% = $750,000

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The number and magnitude of decisions and problems that must be addressed during an emergency are a direct outgrowth of: A. The
konstantin123 [22]

Answer:

The correct option is B.

Explanation:

Emergency managers and planners are professionals, who are experts in the art of analyzing problems, making appropriate decisions and taking necessary actions that will solve the problems on ground.

The decision making process usually begin before the occurrence of emergency, this is called the planning stage.  At this stage, an organization usually make decisions about how it is going to react to certain emergency situations that might occur in the future.

An effective and deliberate planning prior to emergency will greatly enhance the ability of the organization to respond effectively during emergency situations.  The number and the size of decisions and problems that need to be addressed during an emergency situation depend largely on the quality of the decisions that were made (or were not made) during the planning process.

7 0
1 year ago
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent produ
patriot [66]

Complete Question:

Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice.

Group of answer choices.

A. restorative

B. customary

C. distributive

D. frontier

E. reparative

Answer:

Distributive.

Explanation:

In this scenario, Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. As a result of this, his manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with distributive justice.

Distributive justice can be defined as the just and fair allocation of resources among a large group of people. It is mainly focused on the use of discretion as opposed to administrative laws, policies or procedures.

<em>Hence, Rashad was offered the much coveted position by his manager not because he was entitled to it by law but as a result of distributive justice being used by the manager. </em>

8 0
1 year ago
By examining the __________ of Southwest Airlines, one can identify the strategic themes around which it has developed its busin
Alex Ar [27]

Answer:

The correct answer is activity map.

Explanation:

The map of processes or activities is the graphic representation, that is, the diagram, of the interrelation between all processes and subprocesses of the company. That said, it may seem easy to perform, but the truth is that it is usually an arduous task that involves the different departments of the company.

The objective of this map is to know in a very detailed and deep way the workings of the processes and activities in which the company is involved. It is usually done by a team with people in charge of all departments, who are in charge of identifying the processes, both the main and the secondary ones. In fact, three large groups of organizational processes are often differentiated: strategic, operational and supportive.

4 0
1 year ago
Zenith Company, a calendar-year entity, amends its defined benefit pension plan on January 1, 2019 and must recognize the increa
valentina_108 [34]

Answer:

net pension expense (or revenue) under U.S.GAAP is $600

Explanation:

the past service cost included in the 2013 net pension expense ( or revenue) under U.S. GAAP is calculated below;

past service cost = { ( <u>increase PSC for vested employees</u>)

                             (remaining working life of vested employees)

                                                        +

                              {(<u> increase PSC for non-vested employee)</u>}

                               ( remaining working life of non- vested employees)

past service cost = { $5000/10years) + ( $ 2000/20years)

past service cost = $500 + $100

past service cost =$600

Therefore the past service cost  included in the 2013 net pension expense (or revenue) under U.S.GAAP is $600

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