Which of the following does not influence the consumer when he or she is deciding whether or not to buy a product?

Suppose you are currently invested 100% in U.S. stocks and you CANNOT short: a.Find the portfolio that maximizes expected return

Volgvan

Answer:

Part a: The portfolio which maximizes the expected return is in the attached file.

Part b:The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

Explanation:

As the question is incomplete and the data is not available, thus the complete question is found as attached with the solution.

The Sharpe rate is given as

$S_a=\frac{E_a-E_r}{\sigma}$

Where

E_a is the estimated rate of return for a value
E_r is the risk free rate of return
σ is the standard deviation of the investment.

The portfolio variance is given as

$\sigma^2_{portfolio}=\sum_{i}^{n}{\sigma_i^2w_i^2}+\sum_{i}^{n(n-1)/2}{cv_i}$

Where

σ is the standard deviation of the investment.
w is the weighted value of the investment
cv is the covariance term

Portfolio standard deviation is given as

$\sigma_{portfolio}=\sqrt{\sigma^2_{portfolio}}$

Expected rate is given as

$E_{rate of return}=\sum_{i=1}^{n}{E_a_i\times w_i}$

Now the Sharp value is calculated as above.

Now the values as given in the excel sheet are added in the attached excel sheet, following formulas are used to calculate various values

Sharpe ratio is calculated using =(B6-J3)/C6

Portfolio variance is calculated using (=B13^2*C6^2+B14^2*C7^2+B15^2*C8^2+B16^2*C9^2+2*B13*B14*C6*C7*D7+2*B13*B15*C6*C8*D8+2*B13*B16*C6*C9*D9+2*B14*B15*C7*C8*E8+2*B14*B16*C7*C9*E9+2*B15*B16*C8*C9*F9)

Portfolio standard deviation is SQRT(Variance)

Expected return is calculated using =B13*B6+B14*B7+B15*B8+B16*B9

Sharpe is calculated using =(B23-$J$3)/B22

Part a:

The portfolio which maximizes the expected return is in the attached file.

Part b:

The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

4 0

3 years ago

A firm's value added equals 10) A) its revenue minus its wages. B) its revenue minus all of its costs. C) its revenue minus its

Rufina [12.5K]

Answer:

D) its revenue minus its cost of intermediate goods.

Explanation:

The firm value added shows a difference between the revenue and the cost of intermediate goods

In mathematically,

Firm value added = Revenue - cost of intermediate goods

After deducting the cost of intermediate goods from the revenue we can get the firm value added

Hence, the option D is correct as it denotes the firm value added

8 0

2 years ago

You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000

jeyben [28]

The rate of return I would earn if you bought the asset is 16.91.

<h3>What is the internal rate of return?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-5250
Cash flow in year 1 = $750
Cash flow in year 2 = $1000
Cash flow in year 3 = $850
Cash flow in year 4 = $6250

IRR = 16.91%

To learn more about the internal rate of return, please check: brainly.com/question/24172627

8 0

2 years ago

Susan can brew 5 gallons of root beer in an hour or she can make 4 pizzas in an hour. Becky can brew 7 gallons of root beer in a

Murljashka [212]

Answer:

Becky

Explanation:

A person has absolute advantage in the production of a good if she produces more quantities of the good compared to the other person.

Susan produces 4 pizzas in an hour while Becky produces 5 pizzas in an hour. So, Becky has an absolute advantage in the production of pizzas.

I hope my answer helps you

6 0

3 years ago

Today you purchase a $600 face-value, 8% coupon bond for $600. This bond matures over 10 years. What is the value of the cash fl

Nadya [2.5K]

Answer:

the value of the cash flow in year 5 is -$48

Explanation:

Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.

The first step in constructing the amortization schedule is to find the Yield to Maturity.

Pv = -$600

Pmt = $600 × 8% = $48

P/yr = 1

N = 10

Fv = $600

YTM = ?

Using a Financial Calculator the Yield to Maturity is 8%.

then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.

Coupon $48

Capital $0

Total $48

Therefore the cash flow in year 5 is -$48.

8 0

3 years ago