Business, 23.02.2021 01:30, zafyafimli

You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on a risky asset is 16%. If you wish to earn a 22% return, you should . [Hint: The risk-free rate as well as your borrowing rate is 8%. It means that you are able to borrow additional money at risk-free rate, and then use the money to purchase risky assets. This is a case similar to Buying on Margin. ]

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:20, kingyogii

At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58

Answers: 1

continue

Business, 22.06.2019 15:00, WowOK417

Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii

Answers: 2

continue

Business, 22.06.2019 20:20, Carloslogrono10

Gamegirl inc., has the following transactions during august. august 6 sold 76 handheld game devices for $230 each to ds unlimited on account, terms 2/10, net 60. the cost of the 76 game devices sold, was $210 each. august 10 ds unlimited returned six game devices purchased on 6th august since they were defective. august 14 received full amount due from ds unlimited. required: prepare the transactions for gamegirl, inc., assuming the company uses a perpetual inventory syste

Answers: 2

continue

Business, 22.06.2019 20:50, danielanderson12

The following accounts are from last year’s books at s manufacturing: raw materials bal 0 (b) 157,400 (a) 172,500 15,100 work in process bal 0 (f) 523,600 (b) 133,700 (c) 171,400 (e) 218,500 0 finished goods bal 0 (g) 477,000 (f) 523,600 46,600 manufacturing overhead (b) 23,700 (e) 218,500 (c) 27,700 (d) 159,400 7,700 cost of goods sold (g) 477,000 s manufacturing uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. what is the amount of cost of goods manufactured for the year

Answers: 3

continue

Do you know the correct answer?

You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The...