Answer:
Ans 1)
As Average Annual return increases from Combination A to E we can observe that Standard deviation also increases from A to E
Therefore it is clear that there is positive relationship between the Risk of Caroline's portfolio and the average annual return.
Ans 2)
IF Caroline needs to reduce the risk associated with portfolio combination D from 15 to 5 then he can do 2 things such that he should sell some portion of portfolio invested into stocks and ultimately accept lower returns because as we see in Part 1) answer risk and returns are positively correlated.
Option 2) and Option 3) are correct
Ans 3)
95% confidence interval gives us range of -2*SD, 2*SD
therefore range of return for given scenario with portfolio return equals to 3.5% and SD=5%
(Mean- z value*SD , Mean value*SD)=
(3.5%-2*5% , 3.5%+2*5%)=(-6.5%,13.5%)
Gain of 13.5% and Loss of -6.5%
The word clarify works in this context. Please mark Brainliest!!!
Answer:
$1,275
Explanation:
Recall that,
Net operating working assets (NOWC) = Current assets - (current liabilities - notes payable).
Thus,
Given that
Current assets = 2500
Current liabilities = 975 + 250 + 600 = 1825
Notes Payable = 600
Therefore,
NOWC = 2500 - (1825 - 600)
NOWC = 2500 - 1225
NOWC = $1275
Answer would be .24, according to my "calculations"
Portability should be the answer
