Answer:
portfolio's standard deviation = 6.18%
Explanation:
we must first determine the expected returns for each stock:
stock A = (0.15 x 31%) + (0.6 x 16%) + (0.2 x -3%) + (0.05 x -11%) = 13.1%
stock B = (0.15 x 41%) + (0.6 x 12%) + (0.2 x -6%) + (0.05 x -16%) = 11.35%
stock C = (0.15 x 21%) + (0.6 x 10%) + (0.2 x -4%) + (0.05 x -8%) = 7.95%
then we must determine the variance of each stock's return:
stock A = {[0.15 x (31 - 13.1)²] + [0.6 x (16 - 13.1)²] + [0.2 x (-3- 13.1)²] + [0.05 x (-11 - 13.1)²]} / 4 = (48.0615 + 5.046 + 51.842 + 29.0405) / 4 = 33.4975
stock B = {[0.15 x (41 - 11.35)²] + [0.6 x (12 - 11.35)²] + [0.2 x (-6- 11.35)²] + [0.05 x (-16 - 11.35)²]} / 4 = (131.868375 + 0.2535 + 60.2045 + 37.401125) / 4 = 57.4219
stock C = {[0.15 x (21 - 7.95)²] + [0.6 x (10 - 7.95)²] + [0.2 x (-4- 7.95)²] + [0.05 x (-8 - 7.95)²]} / 4 = (25.545375 + 2.5215 + 28.5605 + 12.720125) / 4 = 17.3369
portfolio's variance = (0.3 x 33.4975) + (0.4 x 57.4219) + (0.3 x 17.3369) = 38.21908
portfolio's standard deviation = √38.21908 = 6.18%
Answer:
B. resources to implement strategies are firm-specific and attached to firms over the long-term
Explanation:
Answer:
The answer is e. to support a federal bailout of the banking industry
Explanation:
To response to financial crisis, President Bush had addressed in the public television that the federal bailout of damaged financial institutions was necessary to avoid long and painful recession.
In fact, his administration had implemented an $700 billion worth of Trouble Asset Relief Program since October 2008, in which the amount from federal government's budget was spent on bailout damaged financial institutions such as American International Group (AIG), and bad mortgage debts.
So, e is the correct choice.
Answer:
The rate is greater than 8%
Explanation:
Given
<em>Missing part of question</em>
Required
Is r > 1
We have:
Substitute values for r and I
Divide both sides by 1000
Add 1 to both sides
Take square roots of both sides
Subtract 1 from both sides
Multiply both sides by 100
<em></em>
<em>Hence, the rate is greater than 8%</em>
Answer:
After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted to evaluate market access. To do this, Harold would consider ease of assessing or developing distribution channels and brand familiarity
<u>Explanation: </u>
Harold would, first of all, find out the ease in accessing the market. If he finds that it is easy to access the market or target the consumers than he will develop distribution channels. Distribution channels take lots of time and effort.
Than Harold will determine the brand familiarity which means he will make the consumers familiar with his company's baby products. Brand familiarity affects the consumer's information about the product.
