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Vika [28.1K]
3 years ago
9

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard devi

ation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is .4. The risk-free rate of return is 5%. The expected return on the optimal risky portfolio is approximately _________.
Business
1 answer:
Debora [2.8K]3 years ago
4 0

Answer:

σ2rp = 0.045804

Explanation:

The correct answer to the given question is  σ2rp = 0.045804.

W = (0.14 - 0.05) (0.39 ^ 2) - (0.21 - 0.05) (0.20) (0.39) (0.4)

(0.14 - 0.05) (0.39 ^ 2) + (0.21 - 0.05) (0.20 ^ 2) - (0.14 - 0.05 + 0.21 - 0.05) (0.20) (0.39) (0.4)

σ2rp = (0.292) ( 0.392) + (0.712) (0.202) + 2 (0.29) (0.71) (0.39) (0.20) (0.4)

σ2rp = 0.045804

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Answer:

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Explanation:

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= Standard production time + allowance for rest periods + setup time

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Standard production time is 1 hour per unit

Allowance for rest period is 0.2 hours

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Now put these values to the above formula

So, the answer would be equal to

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Hence, The standard direct labor rate per hour is 1.3 hours

6 0
4 years ago
Consider an individual who serves on the board of a bank and also sits on the board of a computer manufacturing company that bor
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Answer:

<u>Interlocking corporate director</u>

Explanation:

Interlocking corporate director refers to an individual serving as a director on the board of multiple companies.

Interlocking directorship is not considered illegal if the companies of which the same individual serves as a director, are not competing firms.

In the given case, an individual serves on the board of a bank, also serves the board of a computer manufacturing company that usually borrows from the bank.

Here, the independence and objectivity of the director would be impaired and this may lead to a situation of conflict of interests as the director exercises sizable influence in framing the lending policies of the bank.

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Suppose that you have just borrowed $250,000 in the form of a 30 year mortgage. The loan has an annual interest rate of 9% with
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Answer:

Consider the following calculations

Explanation:

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One benefit of on-site day care services for employees is that <u>Employees can visit their children during the day</u>

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3 0
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The entity that pledges to make the interest and maturity payment for bond issues is called the <u>issuer.</u>

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