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Kisachek [45]
2 years ago
13

Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B has an expected return of 20% and a rewar

d-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset and ______. Multiple Choice
asset B asset A
no risky asset
The answer cannot be determined from the data given.
Business
1 answer:
4vir4ik [10]2 years ago
8 0

Answer:

Correct option is B.

<u>Asset A</u>

Explanation:

Reward to variability ratio = return/σ

Asset A,σ = 15/0.4 = 37.5

Asset B,σ = 20/0.3 = 66.67

Since deviation(volatility) is lesser for asset A,a risk investor would prefer asset A.

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The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4
Juliette [100K]

Answer:

Cost of equity   = 10.7%

Explanation:

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

<em>The model can me modified to determined the cost of equity as follows:</em>

Cost of equity = D/P  + g

d- dividend payable next period, p- price of stock ,, - g- growth rate

D- 4.5%, p- $2.48 , g -4.5%

Cost of equity = (2.48 /39.85) + 0.045

                      = 10.7%

6 0
1 year ago
On January 1, 2016, Lester Company purchased 70% of Stork Corporation's $5 par common stock for $600,000. The book value of Stor
Leona [35]

Answer:D. $0

Explanation:

Goodwill is the excess of the purchasing price of a company value of indentifiable net assets.. The purchasing price in this example is less than the value of the.

5 0
2 years ago
Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the
Mila [183]
QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways <span>are as follows:
I. R</span>aise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical <span>healthcare contributions


</span>QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is<span> a key public value outcome in every society.


</span>
QUESTION 3.
<span>The two fiscal issues that are hyper-partisan are as follows:
I. </span>Military defense spending.
II. I<span>ssues of taxes
</span>- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view. 


QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.
4 0
2 years ago
Harrington Company has two products: A and B. The annual production and sales of Product A is 1,750 units and of Product B is 1,
Molodets [167]

Answer:

The overhead cost assigned to each unit of product B is $46.2 per unit.

Explanation:

Overhead absorbed in each product B can be calculated as under:

Overhead Absorbed = Overhead Absorption Rate * Absorption Basis

Here in this question, the absorption basis is Direct labor hours. So the direct labor hour per unit of Product B is 0.7 Hr and the OAR is $66.

By putting values in the above equation, we have:

Overhead Absorbed = $66 per unit * 0.7Hrs = $46.2 per unit

3 0
2 years ago
Some people have proposed establishing legal standards and regulations to govern safety-critical computer-based systems.
Vesnalui [34]

Answer: A) Give and explain counter-arguments against the arguments for each side.Note: the "counter-arguments" you are asked to give should oppose or answer the arguments on the other side as directly and convincingly as possible. They should not be simply unrelated arguments on the opposite side of the issue.

Explanation: When is talking about security is important to have different views, firstable you need to establish which are going to be your claims, premises or arguments, once you got it is important to search for information which can support your ideas, and once you have found it, counter-arguments are necessary to understand which are your weakest point, you need to know your counter-arguments and how people are likely to attack you, once you know the weak part of your speech you can defend it.

6 0
2 years ago
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