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Rashid [163]
4 years ago
15

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a

risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least ______.
Business
2 answers:
Tomtit [17]4 years ago
7 0

Answer:

Answer is 12.64%. Therefore,

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.

Refer below for the explanation.

Explanation:

E - 4%= 0.5(3)(24%)2

E=12.64%

AVprozaik [17]4 years ago
5 0

Answer:

21.28%

Explanation:

This can be calculated using the risk aversion formula as follows:

A = (R – r) ÷ SD^2 ……………………………… (1)

Where;

A = risk aversion rate = 3

R = Portfolio’s expected return = ?

r = Treasury bills rate of return = 4%, or 0.04

SD^2 = Square of portfolio’s standard deviation = (24%)^2, or 0.24^2 = 0.0576

Substituting the values into equation (1) and solve for R, we have:

3 = (R – 0.04) ÷ 0.056

R – 0.04 = 3 × 0.056

R = 0.1728 + 0.04 = 0.2128, or 21.28%.

Therefore, the risky portfolio's expected return is at least 21.28%.

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This method can also be used for face to face meetings.

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Answer:

The option which is not a task of the bankruptcy trustee is;

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The correct option is (e) All of the above.

When workers are asked to participate in a research study, vulnerabilities related to the subject's employment may include all the statements which are given in the question.

<h3>What is vulnerable subject in research study?</h3>

Vulnerable subject populations are regarded as groups of people who may be particularly vulnerable to pressure or improper influence. These include: minors and children. people with cognitive impairment.

There are many possible ways to define who is vulnerable in the research context. Some would include the following:

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Social, cognitive, environmental, emotional, and military vulnerability are a few examples.

Vulnerability is a notion that connects how individuals interact with their environment to the social forces, institutions, and cultural values that support and oppose risks and disasters.

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The complete question is -

When workers are asked to participate in a research study, vulnerabilities related to the subject's employment may include:

(a) The employer may encourage or deny participation of workers

(b) Employees may experience pressure from management to participate in the study because the employer perceives the study to be advantageous to the organization.

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(e) All of the above.

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