A portfolio manager buys $1 million of U. S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%. The portfolio also includes the following investments: Bank commercial paper maturing in 90 days with a bond equivalent yield of 4.34% and a market value of $100,000. Bank certificates of deposit maturing in six months with a bond equivalent yield of 4.84% and a market value of $200,000. The bond-equivalent yield of a comparable benchmark portfolio is 4.0%. Including the Treasury bill purchase, the manager's portfolio is:

A. Outperforming the benchmark

Explanation:

Calculation to determine what the manager's portfolio

First step is to calculate the Treasury bill, bond-equivalent yield for U.S.

Using this formula

Treasury bill

=(Face value − Market value) / Market value × 365 / 90

Let plug in the formula

Treasury bill= ($1,000,000 − 990,390) / 990,390 × 365 / 90

Treasury bill=0.0097 × 0.04056

Treasury bill= 3.93%.

Second step is to calculate The total market value of the portfolio

Total market value portfolio=$990,390 + $100,000 + $200,000

Total market value portfolio= $1,290,390

Now let calculate the manager's portfolio

Manager's portfolio=3.93% ($990,390 / $1,290,390) + 4.34% ($100,000 / $1,290,390) + 4.84% ($200,000 / $1,290,390)

Manager's portfolio=3.93%(76.75%)+4.34%(7.75%)+4.84%(15.50%)

Manager's portfolio=0.0410*100

Manager's portfolio= 4.10%

Therefore Based on the above calculation the manager's portfolio is 4.10% OUTPERFORMING THE BENCHMARK because the manager's portfolio of 4.10% is higher than bond-equivalent yield benchmark portfolio of 4.0%.

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23