This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Simpson Conglomerates borrows 12,000 for a short-term purpose. The loan will be repaid after 120 ... (Read 65 times)

haleyc112

  • Hero Member
  • *****
  • Posts: 600
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

abctaiwan

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

D


haleyc112

  • Hero Member
  • *****
  • Posts: 600
Reply #2 on: Jul 10, 2018
Correct answers!


abctaiwan

  • Sr. Member
  • ****
  • Posts: 355
Reply #3 on: Jul 10, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

A Tibetan wolf killed in 1938. Note the proportionately short legs A Tibetan wolf killed in 1938. Note the proportionately short legs
The Role of Summation in Long-Term Potentiation The Role of Summation in Long-Term Potentiation
Long-Term Potentiation Long-Term Potentiation
To help his students understand the term generalized other, Mead used baseball as an illustration. ... To help his students understand the term generalized other, Mead used baseball as an illustration. ...
Full-term Twin Full-term Twin
A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa
Video: DNA Replication

For a complete list of videos, visit our video library