Answer: right; left
Explanation:
<em>When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the </em><em><u>right</u></em><em> and the demand curve for Treasury bonds shifts to the </em><em><u>left</u></em><em>.</em>
Liquidity is highly sought after in the bond market such that more liquid securities have a higher demand than less liquid securities.
Should Treasury bills become less liquid, their demand would decrease which would result in the demand curve for treasury bills shifting to the left.
More people would then switch over to Corporate bonds which would have more liquidity. The increase in demand for corporate bonds will lead to the demand curve for corporate bonds shifting to the right.
Professional letters for business
Answer:
Expected return - Portfolio = 0.1155 or 11.55%
Explanation:
The expected return on the portfolio is the weighted average of the expected returns of the individual stocks that form up the portfolio. Thus, the formula for the expected return of the portfolio is,
Expected return - Portfolio = rA * wA + rB * wB + ... + rN * wN
Where,
- rA, rB, ... represents the expected return on stock A, return on stock B and so on
- w represents the weight of each stock in the portfolio
Expected return - Portfolio = 0.09 * 0.35 + 0.15 * 0.2 + 0.12 * 0.45
Expected return - Portfolio = 0.1155 or 11.55%
Answer:
D. Gather evidence and approach a trusted supervisor
