Answer: 13.1%
Explanation:
Using the Capital Asset Pricing Model, the expected return is;
Expected Return = Risk Free rate + beta(expected return - risk free rate)
= 4% + 1.3( 11% - 4%)
= 4% + 9.1%
Expected Return = 13.1%
Answer and Explanation:
The computation is shown below:
1. VaR = Expected return - z × Standard deviation
= 13% - 1.645 × 20%
= -19.90%
Therefore the option a is the correct answer.
2) Now the correlation coefficient is
Variance of the portfolio = (weight of A × Standard deviation 1)^2 + (weight of B × Standard deviation 2)^2 + (2 × weight of A × weight of B × Standard deviation 1 × Standard deviation 2 × correlation 1 and 2)
3.80% = (60% × 24%)^2 + (40% × 18%)^2 + (2 × 60% × 40% × 24% × 18% × correlation 1 and 2)
So the correlation is 0.583
To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.
rate of interest/year = (12)(0.85%) = 10.2%
Therefore, the answer is 10.2%.
Answer:
the answer is D) all of the above are equally useful in this case
Explanation:
why? every company who is planing to offers a new good or product its important to know to which market you want to sell it, and the average age, either the company who had been working with the same product, perhaps more capacity of production in the same market, you have to do a market strategy to know if you are able to get into the new market.
Answer: a. cash register tapes.
Explanation:
When you go to a shop and buy something at the till and the cashier prints a receipt and gives it to you, that paper is a cash register tape.
A cash register tape therefore shows the goods sold and the amount the goods were sold at. It is therefore not used as a method of control for cash disbursement which is cash going out of a business but rather for cash that is coming into the business.
