You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on a risky asset is 16%. If you wish to earn a 22% return, you should . [Hint: The risk-free rate as well as your borrowing rate is 8%. It means that you are able to borrow additional money at risk-free rate, and then use the money to purchase risky assets. This is a case similar to Buying on Margin. ]

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?