BUSINESS COLLEGE

Portfolio A has a beta of 1.0 and an expected return of 22%. Portfolio B has a beta of 2.0 and an expected return of 17%. The risk-free rate of return is 2%. Is there an opportunity for arbitrage: (Please explain your answer)

Answers

Answer 1
Answer:

Answer:

Yes, there is an opportunity.

Explanation:

Beta is an indicator of the risk of any portfolio.  The higher beta, the greater the risk. Therefore, the expected return of that portfolio should be higher.

Portfolio B has a higher Beta than portfolio A, but a lower expected return, so we say that the portfolio B is more expensive than it's value. So, there is an opportunity for arbitrage. You should sell the protfolio B and buy the portfolio A, and win the difference between both operations, with no risk.


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The degree of _____ relates directly to the source of power and control within an organization.

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The degree of centralization relates directly to the source of power and control within an organization. 
HIGH SCHOOL

You just went into the cookie business. To determine a price for your cookies, you calculate your _____.

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You just went into the cookie business. To determine a price for your cookies, you calculate your input costs. 

Figuring out  the cost of overhead items such as labor and material used in the production of your cookies will help you determine a more exact direct cost per cookie. 
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True or false: the government could achieve the efficient outcome by giving out fire extinguishers for free using tax revenue.

Answers

Yes, this is effecient outcome. Effecient outcome means No individual can be made better off without making someone else worse off. In this scenario consumers are getting a free fire extinguisher which makes their lives safer, but someone is having to pay for it, meaning there is someone who is getting the short end of the stick. Maybe it is the makers of the extinguishers having to sell them below cost, or tax payers having to pay more in taxes to cover the costs.
HIGH SCHOOL

Given the information here, what is the annual cost of owning? • Home value $ 300,000
• Annual mortgage payments $ 19,200
• Annual property taxes $ 4,800
• Annual homeowner's insurance $ 1,200
• Estimated maintenance and repairs 1 % of home value
• Growth in equity $ 3,000
• Tax savings (mortgage interest and property tax) $ 2,800
• Estimate annual appreciation 1.5 % of home value
a. $300,000b. $38,500c. $28,200d. $338,500e. $17,900

Answers

Answer: Option (e) is correct.

Explanation:

Estimate maintenance cost = Home value × Estimated maintenance and repairs 1 % of home value

                                             = $300,000 × 1%

                                             = $3,000

Estimate Annual appreciation = Home value × Estimate annual appreciation 1.5 % of home value

                                             = $300,000 × 1.5%

                                             = $4,500

Total costs:

= mortgage payments + property taxes + homeowner's insurance + Estimate maintenance cost

= $ 19,200 + $ 4,800 + $ 1,200 + $3,000

= $28,200

Benefits = Growth in equity + Tax savings + Estimate Annual appreciation

              = $ 3,000 + $ 2,800 +  $4,500

              = $10,300

Therefore,

Annual cost of owning = Total costs - Benefits

                                      = $28,200 - $10,300

                                      = $17,900

COLLEGE

________ is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.3

Answers

The right answer to fill in the missing parts of the problem is Trade credit.

Further explanation

Credit is the granting of the use of money or goods to another person at a certain time with a guarantee or not with collateral, by providing services of interest, or without interest.

In general, types of loans can be classified based on their use, purpose, period, and business sector.

Type of credit Based on its use

1. Investment Credit

It is a credit given by a bank for business expansion or development purposes.

2. Working Capital Loans

It is a credit given by a bank to increase the production operation capability of a company.

Types of Credit-Based on Purpose

1. Earning Credit

Used to increase business or production or investment

2. Consumer credit

It is a credit given by banks to the public for personal or institutional consumption.

3. Trade Credit

Credit given by banks to buy commodities or goods to be traded or resold. Debt payments are expected from the sale of the merchandise.

Type of Credit-Based on Term

1. Short-term Credit

Loans with maturities of less than one year or a repayment maturity of at most one year.

2. Medium-term Credit

Medium-term loans are loans issued by banks with repayment periods ranging from one year to three years.

3. Long-term Credit

Long-term credit is a loan that has a repayment period of more than 3 years or 5 years.

Business Sector Based Credit

1. Agricultural Credit

Loans disbursed to finance the agricultural sector or smallholder plantations.

2. Farm Credit

Credit issued to finance the livestock business sector with short-term or long-term credit

3. Industrial Credit

Loans disbursed by banks to finance small, medium or large industrial sectors.

4. etc.

Learn more

Credit brainly.com/question/1995705, brainly.com/question/10826308

Details

Class: College

Subject: Bussines

Keyword: Type of credit.

Answer:

TRADE CREDIT

Explanation:

Trade Credit is the credit extend by the account payable, according terms with the suppliers, which can be free of interest for a certain ammount of time (n/30) and from there they start to generate interest.

Remember:

Short-term financing are financing tools used for period of less than a year

Other short-term financing are:

  • Short-erm Loans
  • Factoring
  • Busness line of credit
  • Invoice discounting
MIDDLE SCHOOL

Determine if the following collection of points represents a function or does not ETELE
represent a function:
{(-2, 7), (-1, 1), (0, -1), (11, 1)}
O Function
Not a function​

Answers

Answer: function || explanation: x’s don’t repeat
MIDDLE SCHOOL

An important basic consumer right is the right to live and work in a ? Environment

Answers

An important basic consumer right is the right to live and work in a Healthy Environment

Explanation:

The right to Healthy environment states that the individuals have the  right to live and work in an environment that is  not  threatening or dangerous to the present or the future generation.

COLLEGE

Vista is a wholesale seller of microwave ovens. Vista sold 50 microwave ovens to Davis Appliance for $20,000. Davis paid $5,000 down and signed a promissory note for the balance. Davis also executed a security agreement giving Vista a security interest in Davis' inventory, including the ovens. Vista perfected its security interest by properly filing a financing statement in the state of Whiteacre. Six months later, Davis moved its business to the state of Blackacre, taking the ovens. On arriving in Blackacre, Davis secured a loan from Grange Bank and signed a security agreement putting up all inventory (including the ovens) as collateral.
Grange perfected its security interest by properly filing a financing statement in the state of Blackacre.
Two months after arriving in Blackacre, Davis went into default on both debts.

Assuming Vista is a partnership, which of the following statements is correct?

Grange's security interest is superior because Grange had no actual notice of Vista's security interest.
Vista's security interest is superior even though at the time of Davis' default Vista had not perfected its security interest in the state of Blackacre.
Grange's security interest is superior because Vista's time to file a financing statement in Blackacre had expired prior to Grange's filing.
Vista's security interest is superior provided it repossesses the ovens before Grange does.

Answers

Answer:

Vista's security interest is superior even though at the time of Davis default Vista had not perfected its security interest in the state of Blackacre.

Explanation:

Vista's security interest is superior because vista has a security interest in Davis inventory. Vista had perfected its security interest in the state of Whiteacre but when Davis moved to Blackacre Vista did not perfected its security interest. Davis went into default on the loan from Grange Bank but the vista security interest was perfected when Davis was not in Blackacre and loan was not drawn at that time.

HIGH SCHOOL

To maintain effective levels of competition in as many markets as possible, the government enforces

Answers

To maintain effective levels of competition in as many markets as possible, the government enforces "Antitrust Laws." Antitrust laws are designed to create greater competition in the marketplace. It was put in place in order corporations will be regulated by the state governments and federal. It regulate companies from imposing large and fixing prices. Competition will be encouraged for the consumers advantage of reasonable prices on quality products.

Answer:antitrust laws

Explanation:

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