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Author Question: Simpson Conglomerates borrows 12,000 for a short-term purpose. The loan will be repaid after 120 ... (Read 33 times)

haleyc112

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on: Jul 10, 2018
Simpson Conglomerates borrows 12,000 for a short-term purpose. The loan will be repaid after
  120 days, with Simpson paying a total of 12,400. What is the approximate cost of credit using the
  APY, or annual percentage yield, calculation?
 
  A) 10.34 B) 12.46 C) 12.25 D) 4.33

Question 2

You construct an equally weighted, two asset portfolio between ACME Corp, an American valve and regulator manufacturer, and Wayne Enterprises, a Hong Kong property company.
 
  The standard deviation of the returns on ACME's shares is 30 and 55 on Wayne Enterprises. Because of the international diversification, the returns on the two companies have no covariance (correlation = zero). What is the standard deviation of returns of the portfolio?
  A) 9.81
  B) 17.60
  C) 22.50
  D) 31.32
  E) 42.50


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abctaiwan

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

D


haleyc112

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Reply #2 on: Jul 10, 2018
Correct answers!


abctaiwan

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Reply #3 on: Jul 10, 2018
Great! Please up vote :D


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