Answer:
-0.4242
Explanation:
Ra = 0.21 or 21%
Rf = 0.045 or 4.5%
Rp = 0.28 or 28%
Expected return on a portfolio is weighted average return of its assets
:
Rp = Rf*(1-w) + Ra*w
28 = 4.5*(1-w) + 21*w
28 = 4.5 - 4.5w + 21w
28 - 4.5 = 21w - 4.5w
21w - 4.5w = 28 - 4.5
16.5w = 23.5
w = 23.5/16.5
w = 1.4242
Hence, weight of risky asset = 1.4242
So, Weight of risk free asset = 1 - 1.4242
Weight of risk free asset = -0.4242
Answer:
The answer is D
Explanation:
Depreciation is best described as An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.
Depreciation reduces the value of an asset and it reduces it over the life span of an asset. Depreciation is a non cash reduction. Depreciation tells us how much the value of an asset has reduced.
The formula is (cost of the asset - any residual value) ÷ the number of useful life span
Answer:
Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.
Explanation:
Hope this helps
Answer:2 : 1
Explanation:
current ratio = current asset/current liability
If current liability was $900,000 less $100,000= $800,000
Therefore the current ratio=
$1,700,000/$800,000 =
2 : 1
