Answer:
The portfolio's expected return is 12% and the standard deviation of the portfolio is 15.65%.
Explanation:
The expected rate of return of the portfolio is the weighted average of the individual stock returns that form up the portfolio. The formula for a two stock portfolio return is,
Portfolio return = wA * rA + wB * rB
Where,
- w represents weight of the stocks in the portfolio
- r represents the return of the stocks in the portfolio
Portfolio return = 0.7 * 0.15 + 0.3 * 0.05 = 0.12 or 12%
The portfolio which consists of a risky and a risk free asset has a standard deviation equal to the weight of the risky asset multiplied by its standard deviation. The risk free asset has no standard deviation. Thus, the formula for a portfolio standard deviation for such a portfolio is,
Standard deviation = weight of risky asset * standard deviation of risky asset
Standard deviation of portfolio = 0.7 * √0.05
Where standard deviation is the square root of variance.
Standard deviation of portfolio = 0.1565 or 15.65%
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Financial intermediary is that entity that acts as an intermediary or the middlemen between the two parties during any financial transaction.
Financial intermediaries can be a commercial bank, an investment bank, pension fund or the mutual funds.
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P(t) = (0.83)t^(5/4)
<span>2096 - 2015 = 81 </span>
<span>81 ^ (5/4) = 243 </span>
<span>243 × 0.83 = 201.69 </span>
<span>Population in 2096 expected to be 202 million.</span>
Saying that money is indivisible is false. As long as its not a penny, money can be divided down to the last cent
Answer:
$4,600
Explanation:
Data provided in the question:
Utility cost = $5,000
Operating level = 20,000 machine hours per period
Final utility cost = $4,000
Final operating level = 15,000
Now,
Variable cost per machine hour
= [Total cost at highest level-Total cost at lowest level] ÷ [ Highest level-Lowest level) ]
=[ 5000 - 4000 ] ÷ [ 20,000 - 15,000 ]
= $0.2 per machine hour
Therefore,
Fixed costs = $5,000 - [ 0.2 × 20,000 ]
= $1000
Total cost for 18000 machine hours
= [ 0.2 × 18,000 ] + 1000
= $4,600