Answer:
You should invest 26.8% of your complete portfolio in treasury bills to earn an expected rate of return of 11% on a complete portfolio.
Explanation:
To begin with, first we have to calculate the return of P portfolio consisting of X and Y securities.
Expected Return (ER) = (Weight of X*Return of X) + ( Weight of Y*Return of Y)
ER = (0.6*0.14) + (0.4*0.12)
ER = 0.084 + 0.048
ER = 0.132 or 13.2%
Now, we have to compute the weight of treasury bills in complete portfolio:
ER = (Weight of TB*Return of TB) + (Weight of P*Return of P)
ER = (wTB * rTB) + (wP * rP)
ER= (wTB * rTB) + rP * (1-wTB)
0.11 = (wTB * 0.05) + 0.132*(1-wTB)
0.11= 0.05wTB + 0.132 - 0.132wTB
0.11 = -0.082wTB + 0.132
Let's make the Weight of Treasury Bills subject:
0.082wTB = 0.132 - 0.11
0.082wTB = 0.022
wTB = 0.022/0.082
Weight of Treasury Bills = 0.268 or 26.8%
Answer:
4.00
Explanation:
Given:
Upper Specification Limit, USL = 27
Lower Specification Limit, LSL = 21
Mean = 22
Standard deviation, = 0.25
Required:
Find the process capability index
First center the mean by taking the average of the LSL and USL.
Use formula below to find process capability index:
We are sullosed to take the minimum value, but since both values are equal, our process capability index will be 4.00
Therefore, the process capability index = 4.00
Answer:
b. one-brand-name strategy
Explanation:
Based on the scenario being described it can be said that the strategy adopted by Tulips Nation is an example of a one-brand-name strategy. This is a strategy which focuses mainly on aiming each one of the company's brands exclusively towards a specific market segment, and managed completely individually from the other brands. Such as Tulips Nation is doing by retaining it's brand name regardless of the market that it is in, thus managing it as it's own unique brand.
Answer: A correlation of 1.00 among demand in two
Explanation: