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kondor19780726 [428]
3 years ago
8

You invest $100 in a risky asset with an expected rate of return of 0.21 and a standard deviation of 0.21 and a T-bill with a ra

te of return of 0.045. What percentages of your money must be invested in the risk-free asset to form a portfolio with an expected return of 0.28?
Business
1 answer:
WARRIOR [948]3 years ago
5 0

Answer:

-0.4242

Explanation:

Ra = 0.21 or 21%

Rf = 0.045 or 4.5%

Rp = 0.28 or 28%

Expected return on a portfolio is weighted average return of its assets :

Rp = Rf*(1-w) + Ra*w

28 = 4.5*(1-w) + 21*w

28 = 4.5 - 4.5w + 21w

28 - 4.5 = 21w - 4.5w

21w - 4.5w = 28 - 4.5

16.5w = 23.5

w = 23.5/16.5

w = 1.4242

Hence, weight of risky asset = 1.4242

So, Weight of risk free asset = 1 - 1.4242

Weight of risk free asset = -0.4242

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Answer:

The options are given below:

A. 4.3

B. 20

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Explanation:

In order to calculate this, we would need the following:

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From the question above, we have:

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To calculate the rating, we have:

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In monetary markets, a share is a unit used in mutual finances, limited partnerships, and real estate funding trusts. Percentage capital refers to all of the stocks of an agency. The owner of shares within the agency is a shareholder of the business enterprise.

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2 years ago
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Answer: social responsibility of business to customers

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social responsibility of business is the voluntary roles which business play in the society

It is the moral obligation that business owes the society, in other words, it refers to the ways in which business enterprises could assist to develop the local communities in which they operate.The business can have responsibilities towards the following

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Employees : The employees are the Labour component of the factors of production, the responsibility of the business to their employees is to pay commensurable salaries and provide satisfying work ,job security and good working conditions for their employees.

Creditors : The creditors are those individuals or organizations whom the business owe money.It is the responsibility of the business to repay these debt as they fall due.It is equally essential for business to cultivate a good culture of debt management.

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The Buying Center is also called the Decision Making Unit (DMU), and it includes personnel from various departments.

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Answer:

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