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Sati [7]
3 years ago
12

Security A offers an expected return of 14%, with a standard deviation of 8%. Security B offers an expected return of 11%, with

a standard deviation of 6%. If you wish to construct a portfolio with a 12.8% expected return, what percentage of the portfolio will consist of security A?
Business
1 answer:
Phantasy [73]3 years ago
7 0

Answer:

60%

Explanation:

Since the question suggests a combined expected return portfolio of 12.8%, we ignore the standard deviation for both of the securities.

The percentage of the portfolio will consist of security A, Wa =

(Combined portfolio expected return - expected return of security B) / (expected return of security A - expected return of security B)

Wa = (0.128 - 0.11) / (0.14 - 0.11)

Wa = 0.018/0.03

Wa = 0.60 = 60%

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The payback period of the project is 3.3 years.

Payback period = initial investment/ annual cash flow

= 50,000/15,000

= 3.3 years.

The time period payback period refers to the amount of time it takes to get better the fee of an funding. surely put, it's miles the period of time an investment reaches a breakeven point. human beings and groups in particular invest their money to receives a commission again, which is why the payback length is so vital.

Payback period in capital budgeting refers back to the time required to recoup the budget expended in an funding, or to attain the ruin-even factor. for example, a $a thousand funding made at the start of 12 months 1 which again $500 at the quit of year 1 and year 2 respectively could have a two-year payback duration.

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5 0
1 year ago
Refer to the supply and demand data for a certain elective surgical procedure. Without health insurance, the equilibrium price a
fenix001 [56]

Answer:

$3,000 and 7,000

Explanation:

Please find attached the table used in answering this question

Equilibrium price is the price at which quantity demand equal quantity supplied.

Equilibrium quantity is the quantity that equates  quantity demand with quantity supplied.

Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded. As a result of the surplus, price would fall until equilibrium is reached.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied. As a result of the shortage, price would rise until equilibrium is reached

5 0
3 years ago
Hypotension in a child with blunt or penetrating trauma is particularly significant because?
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<h3>What is a Hypotension?</h3>

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6 0
1 year ago
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6 0
3 years ago
Which of the following is not included in the heading of a cover letter
eduard
Since no choices are presented, I'll just list down the parts of a cover letter.

A cover letter is a one page document that is attached to a resume. It has 5 parts.

1) The Salutation : Dear Hiring Manager,
2) The Grab - Opening Paragraph - introduction about yourself and your immediate qualification on the position you are applying
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3 0
3 years ago
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