Answer:
A) True
Explanation:
The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".
The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.
Return earned by a portfolio is the weighted average return of the individual stock returns.
CAPM helps calculate expected return of an investor by the following formula:
wherein, 
Risk free rate of return yielded by treasury bonds
B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.
Return which can be earned on market portfolio
Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.
Answer:
steelersssss all the way babyyyy
Explanation:
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
LSL = 4.96 cm
USL = 5.04 cm
Mean = 5 cm
SD = 0.01 cm
1. Capability Index:
Cpk = min ( 
, 
)
So, now, we need to find the following:
= 
= 
= 1.33
Similarly,
= 
=
= 1.33
So,
Cpk = min ( , ) = 1.33
2. Maximum Standard deviation allowed.
Let SD be maximum standard deviation allowed.
So,
Mean - 3SD = 4.96 Equation 1
Mean + 3SD = 5.04 Equation 2
Subtracting Equation 2 from 1, we have
6SD = 5.04 - 4.96
6SD = 0.08
SD = 0.0133
Answer: Please refer to Explanation
Explanation:
According to the Federal Deposit Insurance Corporation, the limit to the amount a person can be insured for is, $250,000 per depositor, per insured bank.
That means that Tony's account at a balance of $120,712 is covered completely as it is well below $250,000.
Their Joint account is also completely covered at $60,099.
Cynthia however does not have complete coverage as her bank account exceeds to the coverage limit by $3,629 which will not be covered.
Should be noted that should she transfer this excess to the joint account then she should be fully covered.
Answer: $6581.58
Explanation:
Based on the information given in the question, the mortgage payment per month will be calculated thus:
= [P x I x (1+I)^N]/[(1+I)^N-1]
where,
P = Principal = $750000
I = Interest rate per month = 10%/12 = 0.10/12 = 0.008333
N = number of installments = 30 × 12 = 360
Then, the equated monthly installment will be:
= [750000 × 0.008333 × 1.008333^360] / [1.008333^360-1]
= [750000 × 0.008333 × 19.8350386989] / [19.8350386989 - 1]
= 123964/18.835
= 6581.58
Under this loan proposal, your mortgage payment will be $6581.58 per month.
