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pav-90 [236]
4 years ago
6

Consider two perfectly negatively correlated risky securities, A and B. Security A has an expected rate of return of 16% and a s

tandard deviation of return of 20%. B has an expected rate of return of 10% and a standard deviation of return of 30%. The weight of security B in the minimum-variance portfolio is?
Business
1 answer:
alex41 [277]4 years ago
8 0

Answer:

40%

Explanation:

Here, We have two perfectly negatively correlated risky securities.

So, the minimum variance portfolio will be the portfolio with zero variance.

so, x(A)=σ(B)/(σA)+σ(B)) and x(B)=σ(A)/(σ(A)+σ(B))

therefore, x(B)=20/(20+30)

x(B)=20/50

x(B)=2/5 = 40%

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Fiesta28 [93]

Answer:

The gas at station A is $0.02 per gallon more expensive

Explanation:

Data provided in the question:

Cash rebate provided by the AMEX card = 2%

Cash rebate provided by the VISA card = 1%

Price of the gas = $2.00 per gallon

Now,

Amount of rebate provided by the AMEX card per gallon = 2% of $2.00

= 0.02 × 2.00

= $0.04

Amount of rebate provided by the VISA card per gallon = 1% of $2.00

= 0.01 × 2.00

= $0.02

Since station A does not accept AMEX card

Therefore, VISA card will be used at station A

Thus,

Rebate at station A =  $0.02

And rebate at station B = $0.04

Difference in rebate = $0.04 - $0.02

= $0.02

Hence,

The gas at station A is $0.02 per gallon more expensive

8 0
4 years ago
Cali Communications reported the figures from its adjusted trial balance and from its​ multi-step income statement for its first
victus00 [196]

Answer:

The preparation is presented below:

Explanation:

The preparation of the retained earnings statement for the year ended July 31, 2018 is presented below:

                                        Cali ​Communications'

                              Retained Earning statement

                           For the year ended July 31, 2018

Beginning balance of retained earning $0

Add: Net income $5,150

Less: Cash Dividend paid -$0

Ending balance of retained earning $5,150

6 0
3 years ago
In an E-Contract, what are the similarities and differences between an Online Offer and an Online Acceptance?
Scilla [17]

ANSWER:

the answer is pet your dogo

Explanation:

8 0
4 years ago
A university is struggling financially, and has just formed a board of trustees and invited 25 of its wealthiest alumni to join
Pani-rosa [81]

The process adopted by the university in inviting its wealthiest alumni to join the board is an example of Co-optation.

<h3>What is Co-optation?</h3>

In business term, the term "Co-optation" is a process adopted by a firm by acculturating a smaller group with related interests because they will gain some values collectively therein.

In conclusion, the process that is adopted by the university in inviting its wealthiest alumni to join the board is an example of Co-optation.

Read more about Co-optation

<em>brainly.com/question/7715001</em>

3 0
3 years ago
Estimate. Then find the product.<br>3. Estimate:<br>24<br>X 15​
Vadim26 [7]
It is 360 there you go
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