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
Ksju [112]
3 years ago
6

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17%, while stock B has a standard

deviation of return of 23%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is 0.032, the correlation coefficient between the returns on A and B is _________.
Business
1 answer:
Goryan [66]3 years ago
3 0

Answer:

.793

Explanation:

Formula

.032=.7^2*.17^2+.3^2*.23^2+2(.7)(.3)(.17)(.23)p

.032=.0142+.0048+.0164p

.032-.0142-.0048=.0164p

.0164p=.013

p=.013/.0164

p=.793

You might be interested in
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has incr
yanalaym [24]

Answer:

Note: labor productivity = 2.344 loaves per labor hour

Answer: 2 workers

Explanation:

Current production: 1600 loaves per month

Manpower hours: 160 hours a month

Productivity: 2.344 loaves per hour

To hours taken to produce 1600 loaves per month at productivity level

= 1600/2.344 = 682.59 labor hours

Each worker works 160 hours per month, ∴ total number of workers that worked for 682.59 labor hours = 682.59/160 = 4.27 workers ≈ 5 workers

(Assuming the approximation to 5 workers)

Increased demand by 45% would mean: 1.45 * 1600 = 2320 loaves per month

To hours taken to produce 2320 loaves per month at productivity level

= 2320/2.344 = 989.76 labor hours required

At a work rate of 160 hours per month: 989.76/160 = 6.19 workers ≈ 7 workers required

This would imply an addition of 2 to the existing number of 5

7 0
3 years ago
A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 5.8%. It will mature in 15 years and the inter
ollegr [7]

Answer:

Current Yield of the bond = 0.057134 or 5.7134% rounded off to 5.71%

Explanation:

A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on bond can be calculated as follow,

Current Yield - bond = Interest payment per year / Current price

To calculate the current yield, we need the present value or current price of the bond.

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.056 * 6/12  = $28

Total periods (n) = 15 * 2 = 30  

r or YTM = 0.058 * 6/12 = 0.029 or 2.9%

The formula to calculate the price of the bonds today is attached.

Bond Price = 28 * [( 1 - (1+0.029)^-30) / 0.029]  + 1000 / (1+0.029)^30

Bond Price = $980.143753 rounded off to $980.14

Current Yield of the bond = (28 * 2)  /  980.14

Current Yield of the bond = 0.057134 or 5.7134% rounded off to 5.71%

6 0
3 years ago
Michael is maximizing utility by consuming three colas at $3 a piece and four hot dogs. The last cola gave him 300 units of util
marusya05 [52]

Answer:

C. $5

Explanation:

Marginal utility is the benefit gained from consuming an additional unit of a product or service.

According to the question, Michael is maximizing utility when Marginal Utility / Price of colas is equal to Marginal Utility / Price of hotdogs. Marginal utility can thus be found by solving the following equation for X (the price of hot dog)

MU/P of Colas = MU/P of hot dogs

300/3 = 500/X

3/300 = X/500

X = (3/300) x 500

X = 0.01 x 500

X = 5

Hence, the price of each hot dog is $5.

5 0
3 years ago
The recording of transactions and events is called:.
Vaselesa [24]
Record-keeping.

Explanation:

The definition of record keeping is keeping records, or units of preserved information. This information can also be kept in books, which brings us to another term; bookkeeping.
8 0
2 years ago
On May 1 Ralph offers to cure and smoke Sam’s pork, and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a
garik1379 [7]

Explanation:

I would say may 6th because Sam didn't know Ralph was going to revoke until May 5th and that only makes it half final because Ralph wouldn't know in anyway except through a letter that Sam has received his letter and agreed or disagreed.

May 6th is when he gets the confirmation. So both people know on May 6th.

If this is too confusing ( like it was for me I had to read it 6 times ) then think about it this way. if you make a deal with a fisherman to buy fish on Wednesday and you send him a lettering sunday that arrives a day later, the fisherman won't know until a day later (Monday) and on that day he receives it you don't know if he got it. That's why it's half official. when he send a letter that arrives the day after he got your letter (tuesday) then you know that he understood you won't make it on Wednesday making it fully official.

does this make sense? if so hope it helps.

6 0
3 years ago
Other questions:
  • Michelle buys a bond for $5,000. every year that she holds the bond, she'll receive interest payments of $250. the interest rate
    10·1 answer
  • 1) Consider the following statement: "Exports pay for imports. Yet in 2012 the nations of the world exported about $540 billion
    15·1 answer
  • On a pay stub what is the difference between “net pay” and YTD net <br> pay
    13·2 answers
  • Reactive firms do not consider exporting until their domestic market is saturated.
    13·1 answer
  • Calculate the sales tax and total sale amount for a product that cost $52.98 and the sales tax is 9.2%
    11·1 answer
  • On January 1, 2017, Teal Furniture Co. borrowed $6,100,000 (face value) from Gary Sinise Co., a major customer, through a zero-i
    10·1 answer
  • What are 6 major forms of direct marketing?
    9·1 answer
  • Which of the following accurately describes a capital gain
    7·2 answers
  • What are the possible drawbacks associated with not considering opportunity costs and time value of money when making financial
    7·1 answer
  • On June 1, 2019, the City of Allentown, PA issued at par, a ten-year, 5.5%, $5,000,000 in serial bonds, with interest payable se
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!