Answer:
(a) 41300 (b) 8.10 % (c) 3.41% (at real rates)
Step-by-step explanation:
Solution
Given:
(a) The Weights of assets in Rachel's portfolio: = amount in each stock/ sum of amounts invested in all stocks
Share Amount Weights
A 13500 0.33
B 7600 0.18
C 14700 0.36
D 5500 0.13
THE TOTAL: 41300
(b) The Geometric average return of a portfolio = ((1+R1)*(1+R2)*(1+R3)....*(1+Rn))^(1/n) - 1
Now,
R1= return of period 1 Rn= return in nth period
Thus,
The Geometric average return of Rachel's portfolio=
((1+9.7%)*(1+12.4%)*(1-5.5%)*(1+17.2%))^(1/4) - 1
= 8.10 % (approx) per year.
(c) Using nominal rate of return (including inflation):
The CAPM: Required return= Risk free return + (Risk premium * Beta)
13.6 = Rf + (4.8*1.5)
So,
Rf= 6.4% (not inflation adjusted)
The inflation adjusted rate of return: ((1+return)/(1+inflation rate))-1
= ((1+13.6%)/(1+2.7%))-1 = 10.61%
Using CAPM: 10.61= Rf + (4.8*1.5)
Therefore, Rf= 3.41% (at real rates)
Step-by-step explanation:
y = 5x - 2…Equation 1
3x - 5y = 4…Equation 2
Subtitute value of y to Equation 2 :
3x - 5(5x - 2) = 4
3x - 25x + 10 = 4
-22x + 10 = 4
10 - 4 = 22x
6 = 22x
6/22 = x
<u>3/11 = </u><u>x</u>
Subtitute value of x to one of Equation :
for example Equation 2…
3x - 5y = 4
3(3/11) - 5y = 4
9/11 - 5y = 4
9/11 - 4 = 5y
(9 - 44)/11 = 5y
(-35)/11 = 5y
(-35)/11 × 1/5 = y
<u>-7/11 = y</u>
Answer:
720 in³
Step-by-step explanation:
The volume (V) of a right prism is calculated as
V = area of triangular end × length
area of Δ = bh
where b is the base and h the perpendicular height
here b = 8 and h = 15, thus
area of Δ = 0.5 × 8 × 15 = 4 × 15 = 60 in²
The length of the prism is 12 in, hence
V = 60 × 12 = 720 in³
Answer:1:6
Step-by-step explanation:
There are 6 animals total, and only 1 bat. So the ratio of bats to the total amount of animals is 1:6
Answer:
9) -25/21
11) 14
Step-by-step explanation:
In each case, subtract the y-coordinates. Subtract the x-coordinates in the same order. Divide the difference in y by the difference in x.
9)
y-coordinates: -10 - 15 = -25
x-coordinates = 6 - (-15) = 21
slope = (difference in y)/(difference in x) = -25/21
11)
y-coordinates: -20 - 8 = -28
x-coordinates = 3 - 5 = -2
slope = (difference in y)/(difference in x) = -28/(-2) = 14