Business, 31.03.2020 17:09 lolyan555

The stock of Business Adventure currently sells for $40 per share. Its dividend payment and its year-end price depend on the state of the economy as follows:

Dividend Stock Price
Boom $2.00 $50
Normal Economy 1.00 43
Recession 0.50 34

Assume the three states of the economy is equally likely to happen.

Expected Return of the stock this year is: 8.75%
Standard Deviation of the stock return for this year is: 17.91%
Risk premium of business adventures stock is: 4.75%
Sharpe Ratio is: 0.266

You’d like to form a portfolio, which consists 60% of the Business Adventure’s stock and 40% of the Treasury bill. Calculate the expected return of such a portfolio and the standard deviation of such a portfolio.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 13:40

Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?

Answers: 2

Answer

Business, 22.06.2019 16:50

The cost of labor is significantly lower in many countries than in the united states. if you move manufacturing to a facility to a country labeled as part of the axis of evil and a threat to world peace you will increase the net income of your client by $10 million per the facility is located in a country which limits personal freedom and engages in state sponsored terrorism. imagine you are a marketing consultant. (a) what would you tell the executives to do? (b) what are the alternatives? what are your recommendations? why do you recommend this course of action?

Answers: 1

Answer

Business, 22.06.2019 17:00

Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. she also wants to chart out all of her financial transactions for the past federal fiscal year. what duration should jillian consider to calculate her finances? from (march or january )to (december or april)?

Answers: 1

Answer

Business, 22.06.2019 20:10

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals

Answers: 1

Answer

You know the right answer?

The stock of Business Adventure currently sells for $40 per share. Its dividend payment and its year...

Questions

Business, 05.10.2020 14:01

Michael has struggled in math classes and worries that he does not have enough math skills to succeed in the work place...