This is true Parole violators account for more than half of prison admissions in many states Parole is a popular sentencing option.
Answer:
Amount investment in Sock Y = - $126,000
Beta of portfolio = 1.636
Explanation:
Data provided in the question:
Total amount to be invested = $140,000
Stock X Y
Expected return 14% 10%
Beta 1.42 1.18
Expected return of portfolio = 17.6%
Now,
let the weight invested n stock X be W
therefore,
Weight of Stock Y = 1 - W
thus,
( W × 14% ) + (1 - w) × 10% = 17.6
%
or
14W + 10% - 10W = 17.6%
or
4W = 7.6
or
W = 1.9
Therefore,
weight of Y = 1 - 1.9 = -0.9
Thus,
Amount investment in Sock Y = Total amount to be invested × Weight
= 140,000 × ( - 0.9 )
= - $126,000 i.e short Y
Beta of portfolio = ∑ (Beta × Weight)
= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]
= 2.698 - 1.062
= 1.636
Answer:
INCREASE the consumption of Pepsi and REDUCE the consumption of Hamburger
Explanation:
Based on the information given we were told that Bill uses his whole budget to purchase the following :
5 cans of Pepsi
3 Hamburgers per week
And the following were the price:
Pepsi costs $1 per can
Hamburger cost $2
Bill marginal utility:
Pepsi 4
Hamburgers 6
Based on the above details this means that Bill could increase his utility by INCREASING Pepsi consumption and REDUCING hamburger consumption reason been that 5 cans of Pepsi costs $1 per can which will gives us income of $5 ($5×1) while 3 Hamburgers per week cost $2 which will give us income of $6 ($3×2) which typically means that the Hamburgers has more income that Pepsi.
Secondly since the marginal utility for Pepsi is 4 while that of Hamburgers is 6 which means that Hamburgers has higher MARGINAL UTILITY than that of Pepsi because the consumption of Hamburgers is higher than the consumption of Pepsi.
Therefore the best thing that Bill could do in order to increase his Pepsi utility is for Bill to increase Pepsi consumption and reduce hamburger consumption.
