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Paul [167]
3 years ago
10

Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock

holdings in his portfolio:Stock Percentage of Portfolio Expected Return Standard DeviationArtemis 20% 8% 38%Babish 30% 14% 42%Cornell 35% 11% 45%Danforth 15% 5% 47% What is the expected return of Andre's portfolio?Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 with each of the other stocks. The market's standard deviation is around 20%, and the weighted average of the risk of the individual securities in the partially diversified portfolio of four stocks is 35%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.3 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio's standard deviation?

Business
1 answer:
Arada [10]3 years ago
6 0

Answer:

answer is attached in figure below

Explanation:

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If interest rates in general were to fall, 1. the prices of existing bonds would rise 2. the prices of existing bonds would fall
IRINA_888 [86]

Answer:

1. the prices of existing bonds would rise

Explanation:

General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.

Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.

So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.  

7 0
3 years ago
Insurance can help you: evefi
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8 0
3 years ago
Midyear on july 31st, the baldwin corporation's balance sheet reported: total assets of $166.859 million total common stock of $
Nata [24]
In the balance sheet, in order to account for the money or amounts that go to an fro in the sheet, we use the equation,
              NW = As - Li
where NW is the networth, As is the asset, and Li is liabilities.

From the given above, the total asset (As) is given to be $166.859M. The net worth is equal to the sum of the common stock, cash, and retained earnings.
             Networth = ($5.080 M) + ($8.040 M) + ($36.411 M)
            Networth = $49.531

The the equation above, we may derive the equation for liability by transposing,
                Li = Asset - Networth
                Li = ($166.859 M) - ($49.531 M)
                Li = $117.328

Hence, the total liability is equal to $117.328. 
4 0
2 years ago
If a manager designs the organizational hierarchy based on the characteristics of the organizational environment, he is acting i
Grace [21]

If a manager designs the organizational hierarchy based on the characteristics of the organizational environment, he is acting in accordance with <u>contingency </u>theory.

<h3>What is organizational hierarchy?</h3>

Organizational hierarchy can be defined as the hierarchy that display the rank or  position of an employees from the top level management to lower level management.

On the other hand Contingency theory is a theory that stated that  an organizational hierarchy can arranged based on the features of an organizational environment.

Therefore the manager is acting in accordance with <u>contingency </u>theory.

Learn more about Organizational hierarchy here:brainly.com/question/28169873

#SPJ1

5 0
1 year ago
10. ABC Company uses a job-order costing system and computes its predetermined overhead rate annual on the basis of direct labor
Ne4ueva [31]

Answer:

Predetermined overhead rate is $9 per labor hour

Explanation:

Estimated Direct-labor hours = 10,000

Estimated Manufacturing overheads = Estimated Fixed overheads + Estimated variable overheads

Estimated Manufacturing overheads = $50,000 + $40,000

Estimated Manufacturing overheads = $90,000

Predetermined overhead rate = Estimated Manufacturing overheads / Estimated Direct-labor hours

Predetermined overhead rate = 90,000 / 10,000 = $9 per labor hour

8 0
3 years ago
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