1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
To keep the price of gas from rising quickly after Katrina, the government instituted price ceilings on the price of gasoline in
baherus [9]

Answer:

The correct answer is letter "D": shortages.

Explanation:

Price ceilings are price limits imposed by the government to avoid producers increasing the price of goods that can be considered as basic or necessary. Then, the price ceiling will increase the demand for those goods but not the supply. Under this scenario, there will be a shortage of that product because of the excess in demand over supply.

4 0
3 years ago
Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes t
Marianna [84]

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.

This is further explained below.

<h3>What are interest rates?</h3>

Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.

"lower interest rates encourage people to spend money on house upgrades"

In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.

Read more about interest rates

brainly.com/question/13324776

#SPJ1

4 0
2 years ago
Mrs. Patterson is a new enrollee in the HealthBest Medicare Advantage (MA-PD) plan. She is new to this type of coverage and asks
Serggg [28]

Answer:

She should expect either the pharmacy directory in hard copy or a distinct and separate notice (in hard copy) describing where she can find the pharmacy directory online and how to request a hard copy.

Explanation:

Additionally, I will also mention that The main difference between medicare advantage plan and Normal medicare is that normal medicare will include wide coverage provided by the government, but the quality of services provided for the medicare advantage plan will be better on average.

The pharmacy directory mentioned above can be used by Mrs. Patterson to choose the type of Specific health services that she wants, the type of specialists that she prefers and the location of treatment that is the most convenient to her. (this type of benefits wouldn't be found in normal plan)

5 0
3 years ago
Anyone know the answer to this one?
balu736 [363]

it looks to me that the answer could be C

Explanation:

it may be C

8 0
3 years ago
Read 2 more answers
Which step minimizes project risks?
Semmy [17]

the answer i prefer is either A OR E ...cause without identifying the costs of a business u can't really run a bs successfully

6 0
3 years ago
Read 2 more answers
Other questions:
  • A company bought a piece of land. It can use this resource to build a factory or to plant crops. The company can also hold onto
    15·1 answer
  • Which of the following would cause a shift in the demand curve loading from point A to point B?
    7·1 answer
  • Sofia works for Galaxy Manufacturing Inc., where her team shares a machine and materials with another team that works a differen
    10·2 answers
  • GL Plastics spent $1,200 last week repairing a machine. This week the company is trying to decide if the machine could be better
    10·1 answer
  • The law of comparative advantage explains why a nation will benefit from trade when
    6·1 answer
  • Monthly Payments and Finance Charges. Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new a
    12·1 answer
  • What is the difference between a public relations specialist and a marketing professional?​
    11·1 answer
  • What are the benefits and advantages of members when joining organizations like UNWTO, PATA, or ASIANTA?
    6·1 answer
  • The typical amount of capital needed to launch a startup, according to the Bureau of Labor Statistics, is
    12·1 answer
  • The interstate commerce act gave the right to supervise railroad activities to?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!