76 297
Assignments Done
Successfully Done
In May 2019

Answer to Question #72442 in Finance for Jones

Question #72442
A firm owned by an investor who invested $500, 000 earns a profit of $150, 000 a year. The best investment alternative for the investor is a portfolio of stocks and bonds earning a return of 12%. What is the economic profit?
Expert's answer
Economic profit = Revenue - Opportunity cost
Opportunity cost = ($500 000 * 12%)/100% = $60 000
Economic profit = $150 000 - $60 000 = $90 000

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


Assignment Expert
16.01.18, 14:46

Dear Jones,

You're welcome. We are glad to be helpful.
If you liked our service please press like-button beside answer field. Thank you!

16.01.18, 13:12

thank you, i also did something like this. now i have confirmed.

Leave a comment

Ask Your question

Privacy policy Terms and Conditions