Answer and Explanation:
The computation is shown below:
1. VaR = Expected return - z × Standard deviation
= 13% - 1.645 × 20%
= -19.90%
Therefore the option a is the correct answer.
2) Now the correlation coefficient is
Variance of the portfolio = (weight of A × Standard deviation 1)^2 + (weight of B × Standard deviation 2)^2 + (2 × weight of A × weight of B × Standard deviation 1 × Standard deviation 2 × correlation 1 and 2)
3.80% = (60% × 24%)^2 + (40% × 18%)^2 + (2 × 60% × 40% × 24% × 18% × correlation 1 and 2)
So the correlation is 0.583
Answer:
C Services are provided by both private and public sectors.
Explanation:
In a mixed economy, the private sector has the freedom to participate in economic activities, although the government has a role to play. A mixed economy allows the private sector to own the factors of production hence are free to decide what business they wish to run. Consumers have the liberty to select their suppliers. There is competition in the market place as profits motivate entrepreneurs.
The government is involved in the provision of public goods such as roads, hospitals, and schools. It provides regulatory services to the private sector to ensure fairness in the economy.
Answer:
used to identify major stockholders
Explanation:
Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.
Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.
Hence, the following are descriptive of an external environmental scanning;
1. Used as a tool for corporations to avoid strategic surprise.
2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.
3. Used to determine a firm's competitive advantage.
4. Used as a tool to ensure a corporation's long-term health.
Answer: Created by investors and traded on various exchanges
Explanation:
Call options are contracts that give the buyer the right to buy the underlying assets of the option on a particular date at a set price by exercising the option. American Call options can be exercised anytime before the date listed in the contract as well.
Call options are created by people who already own stock in the company i.e investors in IBM and traded on various exchanges such as the Chicago Board Options Exchange. It acts as a supplementary way to make income from stock if the investors do not believe that the stock price will go up thus enabling them to make income from the contract price.
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
