PLEASE QUICK!! ( 100 points )
Maddy works for base pay: $37,555 and commission: 5.5%.
Select all the true statements.
Hint(s): To find the commission, multiply the commission rate by the sales.
To find her total earnings, add the base pay and the commission.
A. Commission on $155,000 is $852.50.
B. Commission on $155,000 is $8,525.
C. Total earnings for $85,000 in sales is $42,230.
D. Total earnings for $45,000 in sales is $40,300.
E. Total earnings for $115,000 in sales is $43,880.
Answers
Answer:
Commission on $155,000 is $8,525.
Total earnings for $115,000 in sales is $43,880.
Step-by-step explanation:
5.5% = 0.055 as a decimal fraction.
Commission: 155000 * 0.055.
Total Earnings : 115000 * 0,055 + 37555 = 43880.
Answer:
B and E
Step-by-step explanation:
There's not really much more i can add to this, the first person answered it perfectly.
Related Questions
for each of the number lines, write an absolute value equation in the form |x-c|=d, (where b is a number and c can be either a number or an expression) that has the following solution set.
Two solutions: x=1/2, x=-1/3
Answers
As a result, the solution set for \(x - (-1/6) | = 5/6 is 1/2,-1/3.\)
What are a formula and an equation?
Your example is an equation since an equation that's any statement with an equal's sign. Due of mathematicians' love of equal signs, equations are commonly used in mathematical expressions. An equation is a collection of guidelines for producing a specific outcome.
It is possible to write this absolute value equation with the solution set "1/2,-1/3" in the form |x-c|=d:
\(| x - (-1/6) | = 5/6\)
(-1/6), the halfway point from 1/2 and -1/3. In other words, (-1/6) is indeed the value on the line segment that is equally spaced from 1/2 and -1/3.
5/6, or the range between -1/3 and (-1/6), is the range between 1/2 and (-1/6).
Therefore,\(| x - (-1/6) | = 5/6\) has the solution set {1/2,-1/3}.
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45 POINTS! Three balls are packaged in a cylindrical container. The balls just touch the
top, bottom, and sides of the cylinder. The diameter of each ball is 13 cm.
a. What is the volume of the cylinder rounded to the nearest cubed centimeter
b. What is the total volume of the three balls rounded to the nearest cubed centimeter?
c. What percent of the volume of the container is occupied by the three balls?
Answers
Answer:
a) 5177 cubic centimeters
b) 3451 cubic centimeters
c) 66.66% (67%)
Step-by-step explanation:
a) V=pi*r2*h
V=pi*6.5^2*39
V=5176.5593
b) V=4/3*pi*r^3
V=4/3*pi*6.5^3
V=1150.34651
remember we have to multiply by 3 since there are 3 balls:
V=3451.03953
c) 3451/5177=0.66660*100=66.66%
A musical group performs two concerts. a total of 512 people attend the two concerts. the bar model represents the number of people that attend each concert. which expression models the number of people attending concert 1?
Answers
The expression that models the number of people attending concert 1 is given as follows:
512/6.
How to obtain the number of people attending concert 1?The number of people attending concert 1 is obtained applying the proportions in the context of the problem.
From the bar model, the fractions corresponding to each concert are given as follows:
Concert 1: 1/6.Concert 2: 5/6.The total number of people is given as follows:
512.
Hence the expression that models the number of people attending concert 1 is given as follows:
512/6.
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The height of a rocket a given number of seconds after it is released is modeled by h(t)=-16t+32t+10 what does t represent?
Answers
a teacher gives a 10-point to a class of 10 children.
a. is it possible for 9 of the 10 to score above average on the test? if so, give an example to show how. if not, explain why not.
b. is it possible for all 10 of the children to score above average on the test? if so, give example to show how. if not, explain why not.
Please help!!
Answers
Given what we know, we can say that it is possible for 9 out of 10 students to score above average, but it is not possible for all 10 to score above average.
How do we calculate an average score?In order to calculate the average score of the students, we must use addition.
We have to add all of the scores, in this case, 10 scores, and then divide by the number of scores.
One example of 9 out of 10 students scoring above average would be:
\(1 + 9 +9+9+9+9+9+9+9+9 = 82\)
\(82/10 scores = 8.2\)
This would leave us with an average score of 8.2 and 9 out of 10 students that have scored higher.
Given the way in which we calculate average scores, it is impossible for all 10 students to score above average since even if all 10 students get a perfect score, that would then become the average.
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Given sin(0) = -1/4 and tan 0 = squareroot of 15/15. what is the value of cos 0?
Answers
Answer:
\(\cos \theta = \frac{\sqrt{15}}{4}}\)
Step-by-step explanation:
Recall that \(\sin(-\theta)=-\sin(\theta)\). Therefore, \(\sin\theta=-(-\frac{1}{4})=\frac{1}{4}\)
In any right triangle:
The sine of an angle is equal to its opposite side divided by the hypotenuse of the triangle (o/h)The cosine of an angle is equal to its adjacent side divided by the hypotenuse of the triangle (a/h)The tangent of an angle is equal to its opposite side divided by its adjacent side (o/a)From \(\sin \theta=\frac{1}{4}\) and \(\tan \theta = \frac{\sqrt{15}}{15}\), we know:
\(\theta\)'s opposite side is 1\(\theta\)'s adjacent side is \(\sqrt{15}\) The hypotenuse of the triangle is 4Therefore, the desired answer is \(\boxed{\cos \theta = \frac{\sqrt{15}}{4}}}\).
Complete the statement. Round to the nearest hundredth if necessary. 9 mi $\approx$ km
Answers
Answer:
Step-by-step explanation:
Complete the statement. Round to the nearest hundredth if necessary.
9 mi ≈
km
Cost of car = $3,800
Years driven = 6
Trade-in value = $1,250
Average yearly depreciation?
Answers
Answer:
the answer is monkey epaulets monkey
Step-by-step explanation:
123
b) Find the value of 3a² + 2b² when a = -1 and b = -4
Answers
Answer:
Step-by-step explanation:
1. Put in the numbers instead of variables
3* -1^2+ 2* -4^2=
3*1+2*16
3+32= 32
32 is answer
X = ?????? Geometry
Answers
Answer:
\(\boxed{x^2 = 16}\)
Step-by-step explanation:
Using Tangent Secant theorem:
(x)² = (2)(2+6)
x² = 2(8)
x² = 16
Arianys is going to invest $11,000 and leave it in an account for 9
years. Assuming the interest is compounded monthly, what interest
rate, to the nearest hundredth of a percent, would be required in order
for Arianys to end up with $20,000?
Answers
The compound interest rate of the investment is 1.10%
How to determine the compound interest rate?The given parameters about the compound interest are
Principal, P = $11,000
Amount, A = $20,000
Time, t = 9
Number of times, n = 12 i.e. monthly interest
To calculate the amount, we have:
A = P(1 + R/n)^nt
Substitute the known values in the above equation, so, we have the following representation
20000 = 11000 * (1 + r/12)^(12 * 9)
This gives
1.82 = (1 + r/12)^108
Take the 108th root of both sides
1 + r/2 = 1.0055
Subtract 1 from both sides
r/2 = 0.0055
Multiply by 2
r = 0.011
Express as percentage
r = 1.10%
Hence, the value of the interest rate is 1.10%
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Answer:
6.66%
Step-by-step explanation:
Compounded Monthly:
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20000
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20000
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11000
11000
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1.8181818
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Raise both sides to 1/108 power
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Convert to percent (multiply by 100)
�
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6.66%
Round to the nearest hundredth of a percent
Please someone tell me the answer with work please please
Answers
The volume of the solid of revolution formed by revolving the region bounded by f(x) = -3x² + 8 and g(x) = 3x² + 2 about the x-axis is 16π cubic units.
To find the volume of the solid of revolution formed by revolving the region bounded by the curves f(x) = -3x² + 8 and g(x) = 3x² + 2 about the x-axis, we can use the method of cylindrical shells and integrate.
First, let's find the points of intersection between the two curves by setting them equal to each other:
-3x² + 8 = 3x² + 2
Rearranging the equation, we get:
6x² = 6
x² = 1
x = ±1
So, the curves intersect at x = -1 and x = 1.
To calculate the volume, we'll integrate along the x-axis from x = -1 to x = 1. The volume of each cylindrical shell can be determined by multiplying the circumference (2πy) by the height (dx), where y represents the distance from the axis of revolution to the curve at a given x-value.
The radius of the cylindrical shell, y, can be obtained by subtracting the lower curve (f(x)) from the upper curve (g(x)). Therefore, y = (3x² + 2) - (-3x² + 8) = 6x² - 6.
The integral to compute the volume of the solid can be expressed as:
V = ∫[from -1 to 1] 2π(6x² - 6) dx
V = 2π ∫[from -1 to 1] (6x² - 6) dx
Simplifying and evaluating the integral, we get:
V = 2π [2x³ - 6x] [from -1 to 1]
V = 2π [(2(1)³ - 6(1)) - (2(-1)³ - 6(-1))]
V = 2π [2 - 6 - (-2 + 6)]
V = 2π [8]
V = 16π
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I need! can you help me?
Answers
Answer:
C maybe
Step-by-step explanation:
Lauren bought x boxes of cookies to bring to a party. Each box contains 12 cookies.
She decides to keep two boxes for herself. She brings 60 cookies to the party. Write
an equation that can be used to find the number of boxes, x, Lauren bought.
Answers
Answer:
12x-2=60
Step-by-step explanation:
since there are 12 cookies per box, u could multiply it by x boxes, and since she kept 2 you would need to subtract it from your total.
one card is drawn from a pack of 52cards each of the 52 cards being equally likely to be drawn. what is the probability that the card drawn is a king?
Answers
The probability of drawing a king from a standard deck of 52 cards is 1/13.
In a standard deck of 52 playing cards, there are four kings: the king of hearts, the king of diamonds, the king of clubs, and the king of spades.
To find the probability of drawing a king, we need to determine the ratio of favorable outcomes (drawing a king) to the total number of possible outcomes (drawing any card from the deck).
The total number of possible outcomes is 52 because there are 52 cards in the deck.
The favorable outcomes, in this case, are the four kings.
Therefore, the probability of drawing a king is given by:
Probability = (Number of favorable outcomes) / (Number of possible outcomes)
= 4 / 52
= 1 / 13
Thus, the probability of drawing a king from a standard deck of 52 cards is 1/13.
This means that out of every 13 cards drawn, on average, one of them will be a king.
It is important to note that the probability of drawing a king remains the same regardless of any previous cards that have been drawn or any other factors.
Each draw is independent, and the probability of drawing a king is constant.
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3F furniture dealer has always sold its merchandise through 4 company-operated
stores. Last year sales were birr 1million and net profit was 8% of sales. Fixed
costs were birr 170,000. As a result of shifting population and increased
competition, the four locations have become less desirable. 3F is considering
eliminating its retail stores in favor of door-to-door selling. It is estimated that
sales would increase by 25% and net profit by birr 30,000. Fixed costs would
increase by birr 30,000 because operations would be moved to a low-rent
warehouse. Required
a) What was the break-even point under the old situation?
b) What will be the break-even point under the proposed situation?
c) What birr sales volume must be obtained under the proposed plan to make as
much profit as last year?
Answers
The break-even point under the old situation is 680000, the break-even point under the proposed situation is 806451 and the birr sales volume must be obtained under the proposed plan to make as much profit as last year is 1129032.
Define breakeven point.In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even." Although opportunity costs have been paid and capital has obtained the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."
In the given question, last year sales= birr 100000
net profit= 8% of sales
Fixed costs= birr 170000
Estimated sales increase= 25%
Estimated net profit= birr 30000
Increase in fixed cost due to moving to low-rent warehouse= birr 30000
(a) The break-even point under the old situation (X):
= 100,000 * a - 170,000
=1,000,000 * 8%
a= 25% (net profit)
X*a= 1170,000
X=680,000
That is, the break-even point under the old situation is 680000.
(b) The break-even point under the proposed situation is:
= 1,250,000 x b - 170,000- 30,000
= 80,000 + 30,000
b= 24.8%
X*b=200,00
X=806451
The break-even point under the proposed situation is 806451 and
(c) The birr sales volume must be obtained under the proposed plan to make as much profit as last year is:
X*b -200,000= 80,000
X*b = 280,00
X= 1,129,032
The birr sales volume must be obtained under the proposed plan to make as much profit as last year is 1129032.
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If a coin is tossed 3 times, and then a standard six-sided die is rolled 4 times, and finally a group of four cards are drawn from a standard deck of 52 cards without replacement, how many different outcomes are possible?
Answers
Answer:
67,365,043,200
Step-by-step explanation:
A coin toss has 2 possible outcomes. A coin tossed 3 times has 2³ = 8 possible permutations.
A standard die has 6 possible outcomes. A die rolled 4 times has 6⁴ = 1296 possible permutations.
The number of ways 4 cards can be chosen from a deck of 52 without replacements is 52×51×50×49 = 6,497,400.
The total number of possible outcomes is:
8 × 1296 × 6,497,400 = 67,365,043,200
Can someone please help me with this the last two tutors got it wrong
Answers
Triangular prism: 2 bases and 5 faces
Pentagonal prism: 2 bases and 7 faces
Answer:
I hope this is right
Step-by-step explanation:
A triangular prism has two triangular bases and five faces.
A pentagonal prism has two pentagonal bases and seven faces.
I really hope this is right :)
In the diagram, the measures of 23 and 27 are 45°. The measure of 25 is
135°. Are lines cand dparallel?
F
5
8
OA. Yes, because 23 and 27 are congruent.
OB. No, because 27 and 25 are not congruent.
C. Yes, because 25 and 27 are supplementary.
D. No, because 23 and 25 are not supplementary.
Answers
The correct answer is D. No because 23 and 25 are not supplementary.
In the given diagram, it is stated that the measures of angles 23 and 27 are 45°, and the measure of angle 25 is 135°. To determine if lines C and D are parallel, we need to analyze the angles formed by these lines.
If the alternate interior angles or corresponding angles are congruent, then the lines are parallel. However, in this case, we don't have enough information about the angles formed by lines C and D to make that determination.
The fact that angle 23 and angle 27 are congruent (both measuring 45°) doesn't provide any information about the relationship between lines C and D. Similarly, the measure of angle 25 being 135° doesn't give us any insight into the parallelism of lines C and D. Therefore, we cannot conclude that lines C and D are parallel based on the given information, and the correct answer is D.
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What is 3 3/4 ft to yards as a mixed number?
Answers
The value of 3¾ft in yards would be = 1 6/25 yard
What is a mixed number?A mixed number is the type of number that is made up of three parts such as the whole number, a numerator and a denominator.
To convert to yards;
1 ft = 0.33 yard
3¾ = X yards
make x yards the subject of formula;
X yards = 3¾ × 0.33
X yards = 3.75×0.33
X yards = 1.24 yards
X yards in mixed number= 124/100 = 31/25 = 1 6/25 yard.
Note that the final value which is 124/100 is reduce to the lower figure by dividing through with 4 to arrive at the mixed number 1⁶/25
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Malcolm has $50 gift card to a local car wash and order is the ultimate car wash each visit is $8.95
Answers
The amount cheaper is the car washes Malcolm orders than the car washes Martha's order is $13.
The correct answer choice is option B.
How much cheaper is the car washes Malcolm orders than the car washes Martha's order?Malcolm's gift card = $50.
Cost Malcolm's car wash per visit = $7
Martha's gift card = $180
Cost Martha's car wash per visit = Difference between gift card balance of first and second visit
= $180 - $160
= $20
How cheap is the car washes Malcolm orders than the car washes Martha's order = $20 - $7
= $13
Therefore, Malcolm's car wash is cheaper than Martha's car wash by $13
The complete question is attached in the diagram.
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16m^2+60m-54
Factor
Answers
During the exponential phase, e.coli bacteria in a culture increase in number at a rate proportional to the current population. If growth rate is 1.9% per minute and the current population is 172.0 million, what will the population be 7.2 minutes from now?
Answers
During the exponential phase, e.coli bacteria in a culture increase in number at a rate proportional to the current population. If growth rate is 1.9% per minute and the current population is 172.0 million, the population 7.2 minutes from now can be calculated using the following formula:
P(t) = P ₀e^(rt)where ,P₀ = initial population r = growth rate (as a decimal) andt = time (in minutes)Substituting the given values, P₀ = 172.0 million r = 1.9% per minute = 0.019 per minute (as a decimal)t = 7.2 minutes
The population after 7.2 minutes will be:P(7.2) = 172.0 million * e^(0.019*7.2)≈ 234.0 million (rounded to the nearest tenth)Therefore, the population of e.coli bacteria 7.2 minutes from now will be approximately 234.0 million.
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Please help me out. What are these ??
Answers
Calc II Question
Find the volume of the solid obtained by rotating the region bonded bt the given curves about the specified line.
Y = e^-x
Y = 1
X = 2
About the Y = 2
Answers
Answer:
\(\displaystyle \frac{\pi(5e^4+8e^2-1)}{2e^4}\approx9.526\)
Step-by-step explanation:
This can be solved with either the washer (easier) or the shell method (harder). For the disk/washer method, the slice is perpendicular to the axis of revolution, whereas, for the shell method, the slice is parallel to the axis of revolution. I'll show how to do it with both:
Shell Method (Horizontal Axis)
\(\displaystyle V=2\pi\int^d_cr(y)h(y)\,dy\)
Radius: \(r(y)=2-y\) (distance from y=2 to x-axis)
Height: \(h(y)=2-(-\ln y)=2+\ln y\) (\(y=e^{-x}\) is the same as \(x=-\ln y\))
Bounds: \([c,d]=[e^{-2},1]\) (plugging x-bounds in gets you this)
Plugging in our integral, we get:
\(\displaystyle V=2\pi\int^1_{e^{-2}}(2-y)(2+\ln y)\,dy=\frac{\pi(5e^4+8e^2-1)}{2e^4}\approx9.526\)
Washer Method (Parallel to x-axis)
\(\displaystyle V=\pi\int^b_a\biggr(R(x)^2-r(x)^2\biggr)\,dx\)
Outer Radius: \(R(x)=2-e^{-x}\) (distance between \(y=2\) and \(y=e^{-x}\))
Inner Radius: \(r(x)=2-1=1\) (distance between \(y=2\) and \(y=1\))
Bounds: \([a,b]=[0,2]\)
Plugging in our integral, we get:
\(\displaystyle V=\pi\int^2_0\biggr((2-e^{-x})^2-1^2\biggr)\,dx\\\\V=\pi\int^2_0\biggr((4-4e^{-x}+e^{-2x})-1\biggr)\,dx\\\\V=\pi\int^2_0(3-4e^{-x}+e^{-2x})\,dx\\\\V=\pi\biggr(3x+4e^{-x}-\frac{1}{2}e^{-2x}\biggr)\biggr|^2_0\\\\V=\pi\biggr[\biggr(3(2)+4e^{-2}-\frac{1}{2}e^{-2(2)}\biggr)-\biggr(3(0)+4e^{-0}-\frac{1}{2}e^{-2(0)}\biggr)\biggr]\\\\V=\pi\biggr[\biggr(6+4e^{-2}-\frac{1}{2}e^{-4}\biggr)-\biggr(4-\frac{1}{2}\biggr)\biggr]\)
\(\displaystyle V=\pi\biggr[\biggr(6+4e^{-2}-\frac{1}{2}e^{-4}\biggr)-\frac{7}{2}\biggr]\\\\V=\pi\biggr(\frac{5}{2}+4e^{-2}-\frac{1}{2}e^{-4}\biggr)\\\\V=\pi\biggr(\frac{5}{2}+\frac{4}{e^2}-\frac{1}{2e^4}\biggr)\\\\V=\pi\biggr(\frac{5e^4}{2e^4}+\frac{8e^2}{2e^4}-\frac{1}{2e^4}\biggr)\\\\V=\pi\biggr(\frac{5e^4+8e^2-1}{2e^4}\biggr)\\\\V=\frac{\pi(5e^4+8e^2-1)}{2e^4}\approx9.526\)
Use your best judgment when deciding on what method you use when visualizing the solid, but I hope this helped!
20 Per Question, Algebra 2, Thanks :)
Answers
The answer to the expression is (x+3)/(x-1)
What is a quadratic expression?You should recall that a quadratic expression is an algebraic expression of the form ax2 + bx + c = 0, where a ≠ 0
The given expressions are
(x² - 3x - 18) / (x²- 7x +6
(x²-6x +3x +19) / (x²-x -6x +6)
This implies that {(x²-6x)+(3x-18)} / {(x²-x) -(6x+6)}
⇒[x(x-6)+3(x-6)] / [x(x-1) - 6(x-1)]
This means that [(x+3)(x-6)] / [(x-6)(x-1)]
Dividing by (x-6) to have
Therefore the value of the expression is (x+3)/(x-1)
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A trough is 5 meters long, 2 meters wide, and 3 meters deep. The vertical cross-section of the trough parallel to an end is shaped like an isoceles triangle (with height 3 meters, and base, on top, of length 2 meters). The trough is full of water (density 1000kgm3 ). Find the amount of work in joules required to empty the trough by pumping the water over the top.
Answers
We need a work of 294210 watts to pump the water over the top. \(\blacksquare\)
Work needed to pump all the water over the topSince the cross section area of the trough (\(A\)), in square meters, varies with the height of the water (\(h\)), in meters, and considering that pumping system extracts water at constant rate, then the work needed to pump all the water (\(W\)), in joules, is:
\(W = \int\limits^{V_{max}}_0 {p} \, dV\) (1)
Where:
\(p\) - Pressure of the infinitesimal volume, in pascals.\(V\) - Volume, in cubic meters. \(V_{max}\) - Maximum volume allowed by the trough, in cubic meters.The infinitesimal volume is equivalent to the following expression:
\(dV = A\, dh\) (2)
Since the area is directly proportional to the height of the water, we have the following expression:
\(A = \frac{A_{max}}{H_{max}}\cdot h\) (3)
Where:
\(A_{max}\) - Area of the base of the trough, in square meters.\(H_{max}\) - Maximum height of the water, in meters.In addition, we know that pressure of the water is entirely hydrostatic:
\(p = \rho \cdot g \cdot h\) (4)
Where:
\(\rho\) - Density of water, in kilograms per cubic meters.\(g\) - Gravitational acceleration, in meters per square second.By (2), (3) and (4) in (1):
\(W = \frac{\rho\cdot g\cdot W_{max}\cdot L_{max}}{H_{max}} \int\limits^{H_{max}}_{0} {h^{2}} \, dh\) (5)
Where:
\(W_{max}\) - Width of the base of the triangle, in meters.\(L_{max}\) - Length of the base of the triangle, in meters. \(H_{max}\) - Maximum height of the triangle, in meters.The resulting expression is:
\(W = \frac{\rho\cdot g\cdot W_{max}\cdot L_{max}\cdot H_{max}^{2}}{3}\) (5b)
If we know that \(\rho = 1000\,\frac{kg}{m^{3}}\), \(g = 9.807\,\frac{m}{s^{2}}\), \(W_{max} = 2\,m\), \(L_{max} = 5\,m\) and \(H_{max} = 3\,m\), then the work needed to pump the water is:
\(W = \frac{(1000)\cdot (9.807)\cdot (2)\cdot (5)\cdot (3)^{2}}{3}\)
\(W = 294210\,W\)
We need a work of 294210 watts to pump the water over the top. \(\blacksquare\)
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Answers
Answer:
\(\sqrt{8 m^{6} n^{3}}\)
Step-by-step explanation:
Find the domain and range of the relation. Also determine whether the relation is a function.
{(6,3), (8,5), (-4,-4), (5,5)}
Answers
The domain is:
D: {-4, 5, 6, 8}
The range is:
R: {-4, 3, 5}
And yes, the relation is a function.
How to determine the domain and range?
For a relation that maps elements x into elements y (in the form (x, y)), we define the domain as the set of the inputs (values of x) and the range as the set of the outputs (values of y).
Here our relation is defined by: {(6,3), (8,5), (-4,-4), (5,5)}
The domain is the set of the first values of each pair, so we have:
D: {-4, 5, 6, 8}
The range is the set of the second values of each pair:
R: {-4, 3, 5}
Now, is this a function?
Yes, it is a function, because each input is mapped into only one output.
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You estimate that a passive portfolio, that is, one invested in a risky portfolio that mimics the S&P500 stock index that represents the stock market, yields an expected rate of return of 13% with a standard deviation of 25%. You manage an active portfolio with expected return 18% and standard deviation 28%. The risk-free rate is 8%.
a. Draw the CML (Capital Market Line) and your funds’ CAL (Capital Allocation Line) on an expected return-standard deviation diagram. Indicate their slopes.
b. Suppose your client ponders whether to switch the 70% that is invested in your fund to the passive portfolio. Explain to your client the disadvantage of the switch.
c.In the context of part b, Show him the maximum fee you could charge (as a percentage of the investment in your fund, deducted at the end of the year) that would leave him at least as well of investing in your fund as in the passive one.)
(Hint: The fee will lower the slope of his CAL by reducing the expected return net of the fee.)
Answers
The capital market line with fee will be 0.3771 and the capital allocation line will be 0.24.
How to calculate the slope?The slope of the capital market line will be:
= (17% - 7% - f)/27
= (10% - f)/27
f = 0.3771
The slope of the capital allocation line will be:
= (13% - 7%) / 25%
= 0.24
The reward to variability ratio will be:
= (17 -7)/27
= 0.3771
The client's reward to variability ratio will be:
= (13 - 7)/25
= 0.25
This shows that the client will be disadvantaged of the switch since it's lower.
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