You want to create a $72,000 portfolio comprised of two stocks plus a risk-free security. stock a has an expected return of 13.6 percent and stock b has an expected return of 14.7 percent. you want to own $25,000 of stock b. the risk-free rate is 3.6 percent and the expected return on the market is 12.1 percent. if you want the portfolio to have an expected return equal to that of the market, how much should you invest in the risk-free security?

Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.

Overspeculation and a decrease in consumer confidence are both leading factors of: ?

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.