Business, 17.12.2019 01:31 Blakemiller2020

If the simple capm is valid and all portfolios are priced correctly, which of the situations below is possible? consider each situation independently, and assume the risk-free rate is 5%.

a:

portfolio e(r) beta

a 15% 1.2

b 15% 1.0

b:

portfolio e(r) standard deviation

a 20% 12%

b 15% 20%

c:

portfolio e(r) beta

a 20% 1.2

b 15% 1.0

d:

portfolio e(r) beta

a 30% 2.5

market 15% 1.0

Answers: 3

Show answers

Answers

Answer from: Quest

The answer would be holiday inn.

Answer from: Quest

I’m not sure i’m actually really sorry

Answer from: Quest

yes the correct answer was

b.the increased supply will create a surplus.

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

Another question on Business

Business, 22.06.2019 06:00

For 2018, rahal's auto parts estimates bad debt expense at 1% of credit sales. the company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at december 31, 2017. during 2018, rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.rahal's accounts receivable at december 31, 2018, are:

Answers: 2

Answer

Business, 22.06.2019 15:00

Portia grant is an employee who is paid monthly. for the month of january of the current year, she earned a total of $8,388. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year and the fica tax rate for medicare is 1.45% of all earnings. the futa tax rate of 0.6% and the suta tax rate of 5.4% are applied to the first $7,000 of an employee's pay. the amount of federal income tax withheld from her earnings was $1,391.77. what is the total amount of taxes withheld from the portia's earnings?

Answers: 2

Answer

Business, 22.06.2019 20:00

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer:

Answers: 2

Answer

Business, 23.06.2019 04:00

Match the different taxes to the levels at which these taxes are levied on consumers and businesses national level/ national and local levels 1.sales tax 2.income tax 3.payroll tax 4.social security tax 4.property tax

Answers: 1

Answer

You know the right answer?

If the simple capm is valid and all portfolios are priced correctly, which of the situations below i...

Questions