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const2013 [10]
3 years ago
5

Suppose Frances currently allocates 75% of her portfolio to a diversified group of stocks and 25% of her portfolio to risk-free

bonds; that is, she chooses combination D. She wants to reduce the level of risk associated with her portfolio from a standard deviation of 15 to a standard deviation of 5. In order to do so, she must do which of the following? Check all that apply.
Business
1 answer:
melisa1 [442]3 years ago
7 0

Answer:A 5% Portfolio Standard deviation will be achieve if Frances invests 25% percents in diversified risky stocks and 75% risk free bonds

Explanation:

Portfolio weights = 25% risk free and 75% diversified risky stocks

Portfolio standard deviation = 15%

Portfolio Standard Deviation = weight of risky stocks x Total standard deviation

15% = 0.75 x total standard deviation

total standard deviation = 15%/0.75 = 20%

5% = Portfolio weight x 20%

total standard deviation = 5%/20% = 0.25 = 25%

A 5% Portfolio Standard deviation will be achieve if Frances invests 25% percents in diversified risky stocks and 75% risk free bonds

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Xelga [282]

Answer:

thanks bro

Explanation:

appreciate it

7 0
2 years ago
True or false. in the real world, decreases in ad normally lead to decreases in both output and the price level.
Nikitich [7]
False. In this case, the decrease in AD only decreases the output and not the price level. There is a downward inflexibility of the price level in the real world. In contrary, an upward flexible in prices so that there is an increase in both the output and the price level.
3 0
3 years ago
When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 and an estimated salvage value of $2,200.
nydimaria [60]
<span>$5,375, The method used is finding the original deprecation per year rate and then find the net book value. Find the difference between this and the original salvage value and divide by the number of years left.</span>
3 0
2 years ago
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations,
Lynna [10]

Answer:

$178

$259

Explanation:

The calculation of the variable costing concept and (b) the absorption costing concept is shown below:-

Cost of Goods Manufactured per unit = $516,200 ÷ 2,900

= $178

Fixed Manufacturing Overhead Per Unit = $234,900 ÷ 2,900

= $81

Variable Product cost Per Unit = Cost of Goods Manufactured per Unit

= $178

Absorption product cost per unit = $178 + $81

= $259

8 0
2 years ago
At Central High School, 28% of the students are Freshmen, 26% are Sophomores, 24% are Juniors, and 22% are Seniors. The student
gregori [183]

Answer:

This is a stratified random sample because a separate random sample is selected from each class

Explanation:

Stratified random sampling is an appropriate method when the population consists of mixed characteristics and you would like to ensure that every characteristic is proportionally represented in the sample. In this example, the population is the students from Central High School and the mixed characteristics are the different classes such as Freshman students, Sophomore students, Juniors and Seniors.

After the population is divided into subgroups based on characteristics, from the overall proportion of the population, you calculate how many people should be sampled in each subgroup. Random or systematic sampling can then be used to select a sample from each subgroup.

6 0
3 years ago
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