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zhuklara [117]
3 years ago
8

A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The

standard deviation for the portfolio is______________.
a. 11.2.

b. 12.

c. 14.9.

d. 12.7.

e. 10.
Business
2 answers:
Assoli18 [71]3 years ago
8 0

Answer:

Option d. Is the correct answer.

Explanation:

We are given

Wa = 40/100

Wa = 0.4

Wb = 60/100

Wb = 0.6

We are also give given the covariance as a,b

a² = 144

b² = 81

Therefore, the covariance will be

Cov(a,b) = 225

Portfolio Variance:

Variance =

(0.4×0.4×144) + (0.6×0.6×81) + (2×0.4×0.6×225)

Variance = 23.04 + 29.16 + 108

Variance = 160.2

Remember that, standard deviation is the square root of variance which we have has

Standard Deviation of the portfolio =√160.2

Standard Deviation of the Portfolio = 12.7

zheka24 [161]3 years ago
6 0

Answer:

A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The standard deviation for the portfolio is <u>12.7</u>

Option D is correct

Explanation:

Wa: 0.4

Wb: 0.6

a^2: 144

b^2: 81

Cov(a,b): 225

Portfolio Variance:

: (0.4*0.4*144) + (0.6*0.6*81) + (2*0.4*0.6*225)

: 160.2

Portfolio Standard Deviation: 12.7

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Answer:

B. listing tasks

Explanation:

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4 0
3 years ago
During January, Luxury Cruise Lines incurs employee salaries of $1.2 million. Withholdings in January are $91,800 for the employ
Zarrin [17]

Answer: Please see below for answer

Explanation:

Journal for employee salary and withholdings

Particulars                           Debit                  Credit

Salaries Expense               $1, 200,000

FICA tax Payable                                              $91,800

Federal Income Tax Withholding Payable      $180,000

State Income Tax Withholding Payable           $75,000

Health Insurance Payable                                  $12,000

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Journal to record employer provided fringe benefits for January

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Journal to record employer payroll taxes

Particulars                           Debit                     Credit

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6 0
3 years ago
What could happen if you do not keep track of your checks you write?
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Nothing really, you just might have a better idea of your budget if you do.
3 0
3 years ago
Prepare the journal entries to record the following transactions for Reese Company, which has a calendar year end and uses the s
belka [17]

Answer:

Reese Company Journal entries

September 30, 2017

Dr Depreciation Expense 12,000

Cr Accumulated Depreciation -Equipment 12,000

(To record depreciation expense)

Dr Cash 46,000

Dr Accumulated Depreciation-Equipment 44,000

Dr Loss on Disposal of Plant Assets 6,000

Cr Equipment 96,000

(To record sale of delivery equipment at a loss)

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Dr Cash 24,000

Dr Accumulated Depreciation-Equipment 15,000

Cr Equipment 36,000

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a.September 30, 2017

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nevsk [136]

Answer:

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= $51 million + $18 million + $5.1 million - $7 million

= $67.1 million

3 0
3 years ago
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