Answer:
Expected return is: 7.37% and the Standard deviation is: 24.96%
Explanation:
Correlation between fund S&B=0,0667
Standard Deviation of Fund S=41%
Standard Deviation of Fund(B)=30%
E(R) of Stock Fund S=12%
E(R) of Stock Fund B=5%
Covariance between the funds = Standard Deviation of Fund(B) × Standard Deviation of Fund S × correlation between these funds
Cov = 0.41 × 0.30 × 0.0667 = 0.008204
Now minimum variance portfolio is found by applying:
W min(S)=(SDB)^2-Cov(B,S) / ((SDS)^2+(SDB)^2-2Cov(B,S)
W min(S) = 0.338431
W min(B) = 1-0.338431=0.661569
1) E(r)min= 0.338431 × 12% + 0.661569 × 5% = 7.37%
2) Standard Deviation:
SD Min = (Ws^2XSDs^2+Wb^2XSDb^2+2XWsWb*Cov(s,B)^1/2
SDmin=(0.338431^2 × 0.41^2 + 0.661569^2 × 0.3^2 + 2 × 0.338431 × 0.661569 × 0.008204)^1/2
SDmin=24.96%
In order to determine average variable cost, the firm's variable costs are divided by the amount of output.
<h3><u>
What is average variable expense formula?</u></h3>
The variable cost per unit in economics is the average irregular cost. By dividing the overall variable cost by the output, one may get the average variable cost. In the near term, the businesses utilize the average changing cost to choose when to end their presentation.
<h3><u>How do you calculate variable cost examples?</u></h3>
More specifically, the two primary categories of variable costs—total labor costs and total material costs—combine to form unstable costs. As an alternative, variable costs may be calculated by dividing the cost per unit by the overall quantity produced.
To view more questions on quantity of output, refer to:
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Answer:
Option D) The company's depreciation and amortization expenses declined
Explanation:
When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence, in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,
Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.
Answer:
borro la cuenta los puntos los corazon
Explanation:
The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.
