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 100 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?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

An example of genetic homology: a comparison of a short amino acid sequence within the p53 protein f An example of genetic homology: a comparison of a short amino acid sequence within the p53 protein f
Alternative methods for locating the CPT Main Term. Alternative methods for locating the CPT Main Term.
Hormones acting through the brain help regulate metabolism and short- and long-term appetite. Hormones acting through the brain help regulate metabolism and short- and long-term appetite.
Answer the following short answer, please show your steps and include the formulas used Answer the following short answer, please show your steps and include the formulas used
Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ... Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ...
The purpose of mitosis is to take diploid cells and make two identical clones. A shows a simplified The purpose of mitosis is to take diploid cells and make two identical clones. A shows a simplified
Video: Immune responses Animation

For a complete list of videos, visit our video library