Answer: Option A
Explanation: In simple words, return on investment refers to the mount of profit that an investor earns in relation to the cost he or he incurs by undertaking an investment.
It is used as a performance measure to evaluate the efficiency and effectiveness of a project by comparing it with other investments having some characteristics.
Hence from the above we can conclude that the correct option is A .
Answer:
$12106
Explanation:
Below are the possible return options, and investment options given the schedule and period of investment.
REFER TO ATTACHED FILE FOR THE CHAT
According to this chart, Uncle can get maximum return only from option C. So he should invest everything there, however he needs to pay off 24,000 loan at the end of Year 3. Therefore, he needs to invest an amount that will yield him 24000 at then end of year 3, in Plan B.
That can be calculated by 24000/1.36 = 17647
The balance amount can wait till the beginning of year 2, and then all the amount can be invested in Plan C.
The maximum return at the end of 5 years available will be:
Amount invested in Plan C = 90000 - 17647 (amount saved for the loan payment) = 72353
Return from Plan C at the end of 5yrs = 72353 x 1.66 = $ 12106
Answer:
To ,
The Concern specialists/Editor/Citizens
Subject: To Generate Cash for social assistance right now tempest and debacle .
Dear partners ,
We are confronting an incredible test to loss of our home and harms to our infrastructural improvement . As, I am another business visionary . I wish to contribute cash to greatest individuals with the goal that they can fix their home. This can not be conceivable without your important commitment and backing. I demand each resident , understudies, clients of treats, specialists and so forth to contribute wilfully at all you wish to do right now cause and at the hour of crisis.
Looking for your gifts and an important commitment.
Yours Sincerely,
SALLY
Proprietor AND SOLE PROPRIETOR
CALIFORNIA COOKIES
USA
Answer:
Incremental change in AFB would be $ 480,000
Explanation:
(a) Debt = $ 4,000,000
Interest on debt = 10%
Therefore, Interest outgo on debt = 10% of Debt
=10% of $4,000,000
=$ 400,000
(b) Dividend payable = $0.48 per share(given)
No of shares = 500,000 (given)
Therefore, Outgo on account of dividend = $ 0.48 /share * no of shares
=$0.48 * 500,000
=$240,000
(c) Given, that tax in second would be $160,000 lesser. i.e., outgo would actually be lesser to that extent
Therefore, incremental AFN = (a)+(b)-(c) = $ 400,000 + $ 240,000 - $160,000 = $480,000
Incremental change in AFB would be $480,000
Answer:
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1. Expected Standard Stock Return Deviation Beta
A 10% 20% 1.0
B 10% 10% 1.0
C 12% 12%1.4
Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT?
Question 13 options:
a) Portfolio ABC's expected return is 10.66667% correct answer
. b) Portfolio AB has a standard deviation of 20%.
c)Portfolio ABC has a standard deviation of 20%.
d)Portfolio AB's required return is greater than the required return on Stock A.
e)Portfolio AB's coefficient of variation is greater than 2.0
