b) Two securities have the following current prices and payoffs in two equally likely states of nature at the end of the year Payoff (£) Security State 1 State 2 Current price А 10 20 8.1 30 10 9.2 Answer the following: i) What is the one-period risk-free interest rate? (show all the details of your calculation) ii) Suppose now that there are three states of nature and two securities. Discuss the possibility of finding a risk-free portfolio in this scenario.

Q: Use EMBG's adjusted trial balance to prepare EMBG's balance sheet for the current year-end. EMBG…

A: Definition: Balance sheet: To Know the financial position of the business balance sheet is prepared.…

Q: Explain CMO Mechanics?

A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…

Q: For the second question, were you able to show how that problem would be worked out?

A: The par value is stated in the corporate charter and the company cannot issue shares below the par…

Q: I need it solved with the data in my question.  Thanks

A: With the probability based case, the expected NPV is the weighted average of the NPV of different…

Q: Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash…

A: Given Information: Lester Capital = $48,630 Torres Capital = $65,630 Hearst Capital = $26,190…

Q: What is the project’s PI?

A: The PI index the profitability index of the project. The shows the profitability of the project…

Q: What are the steps to figure this out?

A: Journal: Recording of a business transactions in a chronological order.

Q: I need step by step on how you came up with the answers.

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Could you please do a step by step solving process for this question?

A: PVIFA refers to present value interest factor of an annuity. It is used to determine the present…

Q: Hello, I would need guidance with A-F, if possible.

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: hi, can I get the solution or the computation?, thank you!

A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: PB10-5 Recording and Explaining the Early Retirement of Debt [LO 10-3] QPF Movie Group owns and…

A: Answer 1: Journal Entries:

Q: can you be more clear of what the answer is? thanks

A: Given: Beginning of the Year Common Stock = $8 Additional Paid in Surplus = $138 End of the Year…

Q: What are the Monroe plans?

A: Munroe Plan is a health care service organization that meets the needs of low-income as well as…

Q: I need help with this

A: ‘’Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How about the second question?

A: As per the accounting standard- the effects of changes in foreign exchange currency, income and…

Q: 1. Sona Manufacturing provided the following information for last month: 3. Sales Variable Costs…

A: There are two type of costs that are being incurred in business. One is fixed costs, which will not…

Q: Uncollectible Accounts-Percentage of Sales and Percentage of Recelvab At the end of the current…

A: We shall answer the first question since the exact one was not specified. Please resubmit a new…

Q: Why was EDI devised?

A: EDI: EDI or Electronic data interchange refers to as a system designed to share encrypted…

Q: Identify the gragh?

A: Part a: Total direct material cost increases or decreases in direct proportion to change in activity…

Q: What is this question answer?

A: Net realizable value = Estimated Selling Price -  Cost of Completion and Disposal where, Cost of…

Q: i need details explanatio

A: Under FIFO method, unit purchase first, sold first. Cost of goods sold means we need calculate cost…

Q: What is the heart of ERP system?

A: Given: It is necessary to inquire about the element at the core of the ERP.

Q: How am I going to solve this? Thank you.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Can another formula be used to get the answers?

A: Formula  for calculation of share price=Dividend last year*(1+ Growth rate)(Required rate of return-…

Q: When is a New AIS is needed?

A: AIS is accounting information system is a whole information system which provides information about…

Q: Big help please

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: I need help with figuring out the solution, thank you.

A: The debtors issues an instrument instead of cash said to be note receivable. In case note is paid…