Answer:
Variance of the portfolio is 4.75.
Explanation:
The variance of the portfolio can calculated using the following portfolio variance formula:
Portfolio variance = (WA^2 * VA) + (WB^2 * VB) + (2 * WA * SDA * WB * SDB * CFab) ......................... (1)
Where;
WA = Weight of Stock A = 0.50
WB = Weight of Stock B = 0.50
VA = Variance of Stock A = 4
VB = Variance of Stock B = 9
SDA = Standard deviation of stock A = VA^0.5 = 4^0.5 = 2
SDB = Standard deviation of stock B = VB^0.5 = 9^0.5 = 3
CFab = The correlation between stock A and stock B returns = 0.50
Substituting all the values into equation (1), we have:
Portfolio variance = (0.50^2 * 4) + (0.50^2 * 9) + (2 * 0.50 * 2 * 0.50 * 3 * 0.50)
Portfolio variance = 4.75
Therefore, variance of the portfolio is 4.75.
Answer:
The correct answer is: The law of comparative advantage.
Explanation:
Comparative advantage refers to the situation when an individual, a firm, or a nation can produce a good or service at a comparatively lower opportunity cost.
With the opening up of trade the nation or individual will produce and trade the good it has a comparative advantage in or the good it specializes in producing.
It will export this good to others and import the goods it has a higher opportunity cost in producing. In this way, both the nations or individuals will be able to consume beyond their production possibilities curves.
1) In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out.
Assets add value to your company and increase your company's equity, while liabilities decrease your company's value and equity. The more your assets outweigh your liabilities, the stronger the financial health of your business. But if you find yourself with more liabilities than assets, you may be on the cusp of going out of business.
Examples of assets are:
-Cash
-Investments
-Inventory
-Office equipment
-Machinery
-Real estate
-Company-owned vehicles
Examples of liabilities are:
-Bank debt
-Mortgage debt
-Money owed to suppliers (accounts payable)
2) Personal assets are things of present or future value owned by an individual or household. Common examples of personal assets include: Cash and cash equivalents, certificates of deposit, checking, and savings accounts, money market accounts, physical cash, Treasury bills and your life liabilities are all those things which decrease your ability to lead a good life and can potentially have a negative impact on your future.
Answer:
I want to say c cause it's 40 but then again I don't know