i. Central of the Theory, Assumptions, and Limitations:Markowitz's Modern Portfolio Theory (MPT) is an investment theory that seeks to maximize returns for a given level of risk by constructing an optimal portfolio of assets. The theory is based on several central concepts.
- Efficient Frontier: MPT assumes that investors aim to maximize returns while minimizing risk. The efficient frontier represents a set of portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
- Risk and Return: MPT recognizes that investors face trade-offs between risk and return. It assumes that investors are risk-averse and prefer higher returns with lower risk. MPT quantifies risk as the standard deviation of an asset's returns.
- Correlation and Diversification: MPT assumes that the returns of different assets are not perfectly correlated. By diversifying investments across assets with low or negative correlations, investors can reduce portfolio risk without sacrificing returns.
Limitations include reliance on historical data, assumptions of rationality, and the assumption that markets are efficient.
ii. Return Maximization:
MPT seeks to maximize portfolio returns by selecting assets that offer higher expected returns. It evaluates each asset's historical returns, estimates their future returns, and considers their correlation with other assets. Assets with higher expected returns and low correlation with existing holdings are favored.
iii. Risk Minimization:
MPT aims to minimize portfolio risk by diversifying investments across different assets. By combining assets with low correlations, MPT reduces the overall risk of the portfolio. It allows investors to achieve a lower level of risk for a given level of expected return or a higher level of return for a given level of risk.
iv. Portfolio Diversification:MPT emphasizes the importance of diversification to reduce risk. By investing in assets that do not move in perfect lockstep, MPT takes advantage of the benefits of diversification. Diversification allows losses in some investments to be offset by gains in others, smoothing out overall portfolio performance.
In summary, Markowitz's Modern Portfolio Theory utilizes efficient frontier, risk and return trade-offs, diversification, and correlation analysis to construct portfolios that maximize returns while minimizing risk. By optimizing the allocation of assets, investors can aim for an optimal balance between risk and return.
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A job analysis report transforms the analysis into three components: an
analysis, a summary, and
?
OA. recommendations
OB. goals
OC. a questionnaire
O D. technical competencies
A job analysis report transforms the analysis into three components: an
analysis, a summary, and recommendations.
Job analysis is a process of identifying and describing the duties, responsibilities, and requirements of a particular job. It involves collecting and analyzing information about the job, such as its tasks, knowledge, skills, abilities, and other characteristics. The results of a job analysis can be used to develop job descriptions, determine job qualifications, establish performance standards, design training programs, and evaluate job performance. A job analysis report typically includes an analysis of the job, a summary of the findings, and recommendations for improving the job or filling the position. Job analysis is an important tool for organizations to ensure that they have the right people in the right jobs, which can lead to increased productivity, job satisfaction, and retention.
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A 25-year, $1,000 par value bond has an 15% annual payment coupon. The bond currently sells for $905. If the yield to maturity remains at its current rate, what will the price be 5 years from now?
A977.20
B907.41
C930.11
D984.19
E906.86
The future price of the bond after 5 years will be approximately $901.49. None of the given options matches this value exactly, but the closest option is B. 907.41.
To determine the future price of the bond, we need to calculate the yield to maturity (YTM) and use it to discount the future cash flows. Given that the bond has a 15% annual payment coupon and a par value of $1,000, it means it pays $150 annually ($1,000 x 0.15).
To calculate the yield to maturity (YTM), we can use the current price of $905. The YTM is the discount rate that equates the present value of the bond's cash flows to its current price.
Using a financial calculator or Excel, we can find that the YTM for this bond is approximately 17.12%.
Now, let's calculate the future price of the bond after 5 years using the YTM:
Future price = (Future coupon payments + Future par value) / (1 + YTM)ⁿ
where:
Future coupon payments = Coupon payment x (1 + YTM)ⁿFuture par value = Par value / (1 + YTM)ⁿn = number of yearsPlugging in the values:
Future coupon payments = $150 x (1 + 0.1712)^5 = $317.86
Future par value = $1,000 / (1 + 0.1712)^5 = $584.22
Future price = ($317.86 + $584.22) / (1 + 0.1712)⁵ = $901.49
Therefore, option B. 907.41 is correct.
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The name for the theory illustrated in this diagram is the conservative revolution. supply-side economics. slash-and-burn economics.
The theory presented by the diagram in the question is known as trickle-down economics theory.
What exactly is trickle-down economics?This is referred to as supply-side economics. It teaches that tax breaks and corporate benefits eventually reach everyone in the economy.
Reaganomics detractors have consistently expressed their dissatisfaction with this type of economics.
Therefore, the above explanation explains the statement
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Answer:
First question: B. supply-side economics
Second question: C. "trickle-down economics"
Explanation:
wkw, inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $1,000 in year 1, $4,000 in year 2, and $15,000 in year 3. the cost of capital is 10%. what is the profitability index of the project? 1.97 1.55 1.78 1.04
The profitability index (PI) of the project can be calculated by dividing the present value of future cash flows by the initial investment.
PI = PV of future cash flows / Initial investment
To calculate the present value of future cash flows, we need to discount each cash flow by the cost of capital (10%) using the present value formula:
PV = FV / (1+r)^n
where FV is the future cash flow, r is the discount rate (cost of capital), and n is the number of years.
Using this formula, we get:
PV of year 1 cash flow = 1,000 / (1+0.10)^1 = $909.09
PV of year 2 cash flow = 4,000 / (1+0.10)^2 = $3,305.79
PV of year 3 cash flow = 15,000 / (1+0.10)^3 = $11,594.20
Now we can calculate the present value of future cash flows by adding up the present values:
PV of future cash flows = 909.09 + 3,305.79 + 11,594.20 = $15,809.08
Finally, we can calculate the profitability index:
PI = PV of future cash flows / Initial investment
PI = $15,809.08 / $10,000
PI = 1.58
The profitability index is a financial metric that measures the value created per dollar invested. It is calculated by dividing the present value of future cash flows by the initial investment. A PI greater than 1 indicates that the project is expected to generate positive net present value and create value for the investors. A PI less than 1 indicates that the project is expected to generate negative net present value and destroy value for the investors.
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What type of account is recommended for unexpected expenses?
Answer:
emergency fund
Explanation:
Which buyer type has an open mind and tends to take chances on new products without hesitation?
a. ready buyer
b. logical buyer
c. stubborn buyer
d. emotional buyer
Answer:
A
Explanation:
Which economic system is based on an idea of equality of result; that regardless of how well off somebody starts, all
should be guaranteed an equal success?
O A. Traditional
B. Command
OC. Mixed
D. Market
Answer:
D.Market
Explanation:
A market economy conforms to formal equality of opportunity only if jobs offered by business firms are publicized in advance, so that anyone who might want to apply has a reasonable opportunity to do so.
Bart, Inc., a newly organized corporation, uses the equity method of accounting for its 30% investment in Rex Co.'s common stock. During 20X5, Rex paid dividends of $300,000 and reported earnings of $900,000. In addition: The dividends received from Rex are eligible for the 80% dividends-received deduction. All the undistributed earnings of Rex will be distributed in future years. There are no other temporary differences. Bart's 20X5 income tax rate is 30%. The enacted income tax rate after 20X5 is 25%. In Bart's December 31, 20X5 balance sheet, the deferred income tax liability should be
Answer:
The right answer is "$9,000". A further explanation is given below.
Explanation:
The given values are:
Rex paid dividends,
= $300,000
Reported earnings,
= $900,000
Investment,
= 30%
Taxable rate applicable,
= 25%
Now,
Throughout the future years, the amount of dividends taxable will be:
= \((900,000 - 300,000)\times 30 \ percent\)
= \(180,000\) ($)
Dividends received deduction will be:
= \(180,000\times 80 \ percent\)
= \(144,000\) ($)
then,
Net taxable dividend will be:
= \(180,000-144,000\)
= \(36,000\)
hence,
Deferred tax liability will be:
= \(36,000\times 25 \ percent\)
= \(9,000\) ($)
Do you think drinking water can development of a country? help in the
Answer:
no because you need a lot more to a country then water.
Hope This Helped
Indifference curves close to the origin are ________ those farther from the origin because of ________. Group of answer choices better than; transitivity worse than; nonsatiation better than; completeness worse than; transitivity.
Answer:
Worse than: nonsation
Explanation:
Indifference Curve is a type of curve that depicts all possible combinations of goods that gives the same satisfaction to consumer with the same as well as the same utility.
Indifference curves are also convex to the origin. That is they are bowed inward toward the origin.
is sueing someone for 50,000 dollars for no reason an example of integrity because recently a neighbor in my neighborhood was being rude and then continued to say that people who are not like him do not have integrity... (before get further in just know this guy smokes weed and get drunk like every day and also know one of my other neighbors works for selling houses in my neighborhood) he then sues one of my neighbors who sells houses for no reason and for 50,000 dollars. So...is this integrity lol also let me know if I should tell more crazy stories in my life on brainly lol.
Answer:
ohExplanation:
.............................
If a country's birth rate is 15 per 1,000 population per year and the death rate is 10 per 1,000 population per year, what is
the annual population growth rate?
5 per 1,000
10 per 1000
15 per 1,000
25 per 1,000
The repair service that fixes your farming equipment doesn’t seem to fix your plow correctly. The technician says that if you are not happy, you can buy a new plow from him, but the cost is extremely high. Do you have other options available to you for higher-quality repairs or cheaper equipment? Explain your answer.
Answer:
Your best option would be for higher quality repairs and higher quality equipment, this would save you more money and time in the long run where you have the ability to do other things.
Explanation:
Mark as Brainliest please!
Ill give u a cookie
Answer:
No, because in command economies, there is no competition. So, there are no other repair services that would offer higher-quality repairs or cheaper equipment. Additionally, no incentive exists for the technician to provide high-quality service.
Explanation:
the actual answer
Which major car company is recalling 143,000 of its suvs due to an airbag issue?
General Motors (GM) is recalling 143,000 of its SUVs due to an airbag issue. The affected vehicles are Chevrolet Traverses, GMC Acadias, and Buick Enclaves from the 2020 and 2021 model years.
According to GM, the airbags may not properly inflate during a crash, increasing the risk of injury to passengers. The issue is caused by a faulty airbag sensor connection that may come loose over time. GM has stated that it will notify affected owners and dealers will inspect and fix the connection as necessary, free of charge. Owners can also contact GM's customer service for more information or to schedule a repair appointment. It's important for affected owners to take action promptly to ensure their safety on the road. Subaru will notify the affected vehicle owners, and dealers will inspect and, if necessary, replace the faulty airbag sensor at no cost to the customers.
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When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in:
When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in: strategic trade-offs.
What are strategic trade-offs?
This is a term that is used in the business word to refer to the sacrifices that a firm would make in order to be able to deliver on its goals.
Trade offs could be the service levels that the firm is not able to achieve.
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Game theory suggests that competing firms in an oligopolistic industry may be
Game theory suggests that competing firms in an oligopolistic industry may be reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases.
What is Game theory?Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing. Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
Here are the options:
. too quick to raise prices because they will fail to anticipate that rivals may gain market shares.
b. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases
c. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases
d. too quick to cut prices because they fail to anticipate that rivals may also cut their prices.
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Game theory suggests that competing firms in an oligopolistic industry may be reluctant to price changes.
What do you mean by oligopoly?An oligopoly is a form of market that is made up of a few large firms engaging in strategic behavior. An automobile is the best example of an oligopoly market.
A game theory suggests that competing firms in an oligopoly industry may be reluctant in changes the price because they can analyze that rivals can match the price cuts but generally ignore the increase in the prices.
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What are closing costs?
Fees added for the cleaning of a home
Fees for renovating/remodeling the home
Fees added when buying a house such as title transfer fees and lawyer fees
Fees paid by the local township
Answer:
C) Fees added when buying a house such as title transfer fees and lawyer fees
Explanation:
Which of the following is true about bonds?
A. The bond rating being changed from BBB+ to B would result in a lower required yield
B. The primary advantage to municipal bonds is that interest income received is not taxed by the federal government
C. Interest from mortgage bonds are not taxed by the Federal Government.
D. Spread to treasuries measures the difference between the coupon rate paid by a bond and the coupon rate paid by risk free security with the comparable maturity
E. Only bonds issued in the primary market are subject to prepayment risk
Answer:
B. The primary advantage to municipal bonds is that interest income received is not taxed by the federal government.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A municipal bond can be defined as a type of bond that is typically issued by a municipality, county, local government or state in order to finance or sponsor capital expenditures for the public such as water supply, construction of roads, etc.
Hence, the primary advantage to municipal bonds is that interest income received on this type of bond is not taxed by the federal government.
Helpp
Tri-county Supply budgets 5% of the previous year's total revenue for utilities. The receipts from
the last year showed revenue of $4,500,000.00 How much will be budgeted for utilities for the
year?
Answer:
$225,000
Explanation:
The utility budget is 5% of the previous year's total revenue.
The previous year revenue was $4,500,000.00
The utility budget will be 5% of $4,500,000.00
=5/100 x $4,500,000.00
=0.05 x $4,500,000
=$225,000
What is the estimated 1st year Net Operating Income (NOI) of the following property: 50,000 square feet of office space currently rented for $10 per square foot per year, 6% projected vacancy, operating expenses of 30% of Effective Gross Income (EGI), and $15,000 per year in capital expenditures?
The estimated 1st year Net Operating Income (NOI) of the property is $315,000.
To calculate the NOI, we first calculate the Effective Gross Income (EGI) by multiplying the rented square footage (50,000 sq ft) by the rental rate ($10/sq ft) and subtracting the projected vacancy (6%). This gives us EGI of $470,000.
Next, we calculate the operating expenses by multiplying the EGI by the expense ratio (30%). This gives us operating expenses of $141,000.
Finally, we subtract the operating expenses and capital expenditures ($15,000) from the EGI to obtain the NOI. Thus, the NOI for the 1st year is $315,000.
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The three primary reactions people have to attempts to manage or influence them are
Answer:
Resistance, Compliance, or Commitment.
Explanation:
HOPE THIS HELPS!!! ;P
If you enjoy working with data, a career in accounting might be a good fit for you. True false.
True, Accounting is the backbone of every business and provides a wide range of rewarding job opportunities.
What distinguishes a career from a job?Work that you perform for pay is a job. It often calls for you to do a very precise set of duties and hold an associated job title. On the other hand, a career is a set of professions or occupations that a person holds throughout their life and that progress together and get harder.
What distinguishes a career from a job?A career is the culmination of your roles, experiences, education, and pathways taken to reach your objectives. A job is only a role. Naturally, it's okay if you.
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When it comes to investing, what is the best approach to very optimistic and big news about a new company? (5 points)
a
Invest right away; trust the news.
Caution; research the company first.
O Invest a large amount through a financial advisor.
Contact the company to obtain information.
Answer:
caution research company first
Explanation:
safest option
PLEASE HELP! I'M DOING A TEST!!!
Which analyst position analyzes information using mathematical models to help business managers make decisions?
A) Budget Analyst
B) Management Analyst
C) Credit Analyst
D)Operations Research Analyst
Answer:
operations research analyst
Retained Earnings of $100,000 represent a corporation's cumulative earnings ______ and is shown on the ______. Multiple choice question. declared; statement of retained earnings kept; balance sheet and statement of retained earnings in cash; balance sheet
Retained Earnings of $100,000 represent a corporation's cumulative earnings kept and is shown on the balance sheet.
The retained earnings simply mean the proportion of the cumulative profit of a company that is held or retained for the future.
Retained earnings are typically used to meet the future needs of the company. Therefore, the retained earnings of $100,000 represent a corporation's cumulative earnings kept and is shown on the balance sheet.
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A person performs a cost-benefit analysis in order to:
A. calculate the expenses of multiple businesses competing in the
same market.
B. evaluate the possible positive and negative effects of different
economic decisions.
C. analyze economic data to reach general conclusions about a
country's economy.
D. determine the tax rates a business will pay depending on its
profits in a year.
o
Answer:
B. evaluate the possible positive and negative effects of different economic decisions.
Explanation:
Cost-benefit analysis (CBA) is used to examine and compare the cost associated with a project or task and the benefits derived from it.
Simply stated, cost-benefit analysis is a form of utilitarianism commonly used by individuals, business firms and government in the decision-making process, as all the cost incurred are determined and analyzed.
This ultimately implies that, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Cost-benefit analysis (CBA) sums the total cost associated with a project (activity) and compares this cost against the total benefits that would be generated. Thus, it helps in the decision-making process by comparing the net present value (NPV) of the cost of a particular project with the net present value (NPV) of its benefits.
Hence, a person performs a cost-benefit analysis in order to help him or her evaluate the possible positive and negative effects of different economic decisions with respect to an investment, project, activity, or programme.
Mention five legal ways to spend money
Some ways that you can spend money legally are:
Buying booksGoing on a vacationBuying a companyGiving to the poor or a charityEmploying laborWhat is Money?This refers to the legal tender that is used for the buying and selling of goods and services that have an inherent value
Hence, we can see that based on the given question, money can be spent in a variety of ways legally and this includes starting a business, giving to the poor, etc.
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Which expectation of an employer involves seeing employees dress appropriately and arrive at work on time?
Employees are expected to be punctual and dress appropriately, thus maintaining_____.
Answer:
office decorum
Explanation:
The term workplace decorum, in plain terms, refers to the basic collection of such rules that aim to make the workplace atmosphere a nicer environment to settle in. The term "office decorum" may make it look dense as well as packed with several implications, but in actuality it is a collection of basic instructions that you'll have to examine in an organization to work around each other.
Answer:
Professional Decorum
Explanation:
edmentum
Which of the following is a form of insurance that you can buy to value home contents? 1) Insurance that covers the depreciated value. 2) Insurance that covers the future expected value. 3) Insurance that covers the replacement value. 4) a and c, but not b
The type of insurance that you can buy to value home contents is the insurance that covers the replacement value. This type of insurance covers the cost of replacing items with equivalent items at current market prices without deducting for depreciation.What is replacement value insurance?
Replacement value insurance is a type of insurance policy that covers the cost of replacing items with equivalent items at current market prices without deducting for depreciation. It usually applies to the replacement of items lost or damaged due to natural disasters or unforeseen circumstances.A replacement value policy provides the most protection for your personal property because it ensures that you receive the full value of what it would cost to replace your belongings.
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If inputs decrease by 6% and outputs decrease by 20%, what is the percentage change in productivity?Hint: assume old inputs and old outputs to be 1.-14.89% 333.33% -14.00% 30.00% 17.5%
If inputs decrease by 6% and outputs decrease by 20% the percentage change in productivity is a 333.33% increase, option 2 is correct.
The percentage change in productivity can be calculated using the following formula:
Percentage Change in Productivity = [(New Output - Old Output) ÷ Old Output] ÷ [(New Input - Old Input) ÷ Old Input] × 100%
Using the given inputs and outputs, we can calculate the percentage change in productivity as follows:
New Input = Old Input - 6% of Old Input = 0.94 × Old Input
New Output = Old Output - 20% of Old Output = 0.8 × Old Output
Percentage Change in Productivity = [(0.8 × Old Output - Old Output) ÷ Old Output] ÷ [(0.94 × Old Input - Old Input) ÷ Old Input] × 100%
= [(0.2) ÷ (0.06)] x 100%
= 333.33%
Thus, option 2 is correct.
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The complete question is:
If inputs decrease by 6% and outputs decrease by 20%, what is the percentage change in productivity? Hint: assume old inputs and old outputs to be
1.-14.89%
2. 333.33%
3. -14.00%
4. 30.00%
5. 17.5%