QUESTION 2 As the manager of the investment fund "Buy and Hold" you are a true believer in CAPM. On your computer screen you have all the information you need to make your investment decisions: the mean return to LuSE has been 12%, the rate of return of government bonds has been 3.5%, and the standard deviation of returns to LuSE is 21% (a) One of your best clients, Mr. Banda, wants to invest in a portfolio with an expected return of 15% and the lowest possible risk. What is the composition of this portfolio? What is the risk (standard deviation) of this portfolio? (11 marks) (b)In the Board of Directors of Buy and Hold one of your colleagues suggested that the fund should consider investing in a well-diversified portfolio of South African stocks. This portfolio, called JSE, has had a mean rate of return of 16.69% and a standard deviation of returns of 40% Determine whether it is worthwhile investing in JSE if (argue why it is yes or no but explain clearly) The correlation between the rate of return to the LuSE and the rate of return is 1 (11 marks) to the JSE The correlation between the rate of return to the LuSE and the rate of return to the JSE is 0. (11 marks) 111. The table provides information on four bonds. Use this information to determine the yield to maturity on these bonds. What can explain the difference in yields for bonds and D? Bond Maturity Coupon Face Value Price A 1 0 1000 990 B 2 10 1000 980 3 20 1000 960 D 3 10 1000 975​

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. 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 for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal.supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal.prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal.insurance expensejan. 31 bal. 164 164 jan. 31 bal.wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal.wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal.truckjan. 31 bal. 17,376 17,376 jan. 31 bal.accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal.a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year.c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths

Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?