Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $155,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 6%.
(a) If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
(b) Suppose that the portfolio can be purchased for the amount you found in (a). What will be the expected rate of return on the portfolio?
(c) Now suppose that you require a risk premium of 12%. What is the price that you will be willing to pay?

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?

Consider the labor market for heath care workers. because of the aging population in the united states, the output price for health care services has increased. holding all else equal, what effect does this have on the labor market for health care employees? a. the equilibrium wage increases and the equilibrium quantity of labor increases. b. the equilibrium wage increases and the equilibrium quantity of labor decreases. c. the equilibrium wage decreases and the equilibrium quantity of labor increases. d. the equilibrium wage decreases and the equilibrium quantity of labor decreases.

Acompany that uses the periodic inventory system provided the following information: 1. beginning inventory $ 5 comma 0002. purchases $ 150 comma 0003. purchase discounts $ 2 comma 1004. purchase returns and allowances $ 1 comma 000at the end of the period, the physical count of inventory reveals that $ 16 comma 000 worth of inventory is on hand. what is the amount of cost of goods sold?