Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
Answer:
x=-4
x=4
Step-by-step explanation:
We can factor x^2 -16 = 0 by recognizing that it is a difference of squares. That means we can factor the equation to (x-4)(x+4) = 0. By using the Zero Product Property we know that either (x-4) or (x+4) is equal to 0. That means that x either equals -4 or 4.
Answer:
X= 9//
Step-by-step explanation:
abc = efg
ac + cd = eg + gh
9 + (x+2) = 6 + (2x-4)
9 - 6 = 2x-4 - (x+2)
3 = x - 6
3+6 = x
9 = x//