Answer:
16.0996% rounded off to 16.1%
Explanation:
We can calculate the standard deviation of a portfolio, that is the total risk of a portfolio, using the following formula,
S.D = √ (w1)² (S.D1)² + (w2)² (S.D2)² + 2 (w1) (w2) (correlation) (S..D1) (S.D2)
Where,
- w1 is the weigh-age of investment in stock/bond 1
- S.D1 is standard deviation of returns of stock/bond 1
- w2 is the weight-age of stock/bond 2
- S.D2 is the standard deviation of returns of stock/bond 2
- correlation is the correlation between the returns of stock/bond 1 and 2
We calculate the S.D of given portfolio,
S.D = √ (0.5)² (0.24)² + (0.5)² (0.12)² + 2 (0.5) (0.5) (0.55) (0.24) (0.12)
S.D = 0.160996 or 16.0996 %
Answer:
The answer is: 1) II > I > III
Explanation:
<u>Pricing scheme I: $2 million profit</u>
- Price $150,000
- Contribution margin = $150,000 - $50,000 = $100,000
- 35 units sold x $100,000 = $3.5 million
- profit = $3.5 million - $1.5M = $2 million
<u>Pricing scheme II: 2.25 million profit</u>
- Price $200,000
- Contribution margin = $200,000 - $50,000 = $150,000
- 25 units sold x $150,000 = $3.75 million
- profit = $3.75 million - $1.5M = $2.25 million
<u>Pricing scheme III: $1.5 million profit</u>
- Price $250,000
- Contribution margin = $250,000 - $50,000 = $200,000
- 15 units sold x $200,000 = $3 million
- profit = $3 million - $1.5M = $1.5 million
Answer:
c is the answer of the question bro
Answer:
weighted return = 0.0781 = 7.81%
Explanation:
Given data:
stock cost is $50
dividend on stock is $2
cost of new stock $53
share dividend cost from 2 year now = $2
total selling cost for both stock is $54
holding period return for 1st year
%
%
weighted return
weighted return
weighted return = 0.0781 = 7.81%