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
The answer to that is gonna be answer B
Answer:
Answer is D. Informational.
Refer below.
Explanation:
Estelle is trying to create an advertising message that communicates the tangible features of her company's laptop computers, telling consumers about the relative advantages of her products as compared to other offerings in the market. Estelle is trying to create an informational appeal.
<span>Partnership. They both together running the business with efforts and money so this action called partnership. Partnership action don't have to equal it can be 80%-20% or 40%-60% or anything. Not only persons have to be two it can be three or four or anything more than one.</span>
Answer:
Market estimate of the one year treasury rate one year from now is 11.76%
Explanation:
The formula for pure expectations theory used in forecasting future interest rate is given below:
One year interest rate=(1+r2)^n+1/(1+r1)^n-1
r2 is the forecast interest rate in two years which is 8.7600%
r1 is the forecast interest rate in year 1 which i 5.8400%
n is one year from now
one year interest rate=(1+8.7600%)^2/(1+5.8400%)^1-1
one year interest rate=(1+0.087600)^2/(1+0.058400)^1-1
=1.087600^2/(1.058400)^1-1
=1.18287376
/1.058400-1
=1.117605593-1
=0.117605593
=11.76%
