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RUDIKE [14]
3 years ago
12

33). You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put

the rest of you money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolio have a correlation 0.55. The standard deviation of the resulting portfolio will be ________________.
Business
1 answer:
Natalija [7]3 years ago
4 0

Answer:

16.0996% rounded off to 16.1%

Explanation:

We can calculate the standard deviation of a portfolio, that is the total risk of a portfolio, using the following formula,

S.D = √ (w1)² (S.D1)² + (w2)² (S.D2)² + 2 (w1) (w2) (correlation) (S..D1) (S.D2)

Where,

  • w1 is the weigh-age of investment in stock/bond 1
  • S.D1 is standard deviation of returns of stock/bond 1
  • w2 is the weight-age of stock/bond 2
  • S.D2 is the standard deviation of returns of stock/bond 2
  • correlation is the correlation between the returns of stock/bond 1 and 2

We calculate the S.D of given portfolio,

S.D = √ (0.5)² (0.24)² + (0.5)² (0.12)² + 2 (0.5) (0.5) (0.55) (0.24) (0.12)

S.D = 0.160996 or 16.0996 %

 

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Answer:

True

Explanation:

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(2) the expected return as seen by the marginal investor must equal his or her required return.

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Mary's Baskets Company expects to manufacture and sell 24 comma 000 baskets in 2019 for $ 7 each. There are 2 comma 000 baskets
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Answer:

The budgeted sales revenue is : $168,000

Explanation:

In 2019, as Mary's Basket Company has the opening Inventory balance of 2,000 baskets; projects to manufactures 24,000 baskets, plans to maintain ending inventory at $2,000 baskets without any work-in-process inventory; We have the baskets available for sales in the year of 2019 is:

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The unit price is projected at $7.

Thus, we have the projected sales revenue is:

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3 years ago
the creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indisp
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The United States should increase the domestic manufacturing to promote prosperity.

<h3>What is manufacturing?</h3>

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xeze [42]

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The correct answer to the following question is option B) both statements i and ii are correct.

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First of all the marginal product can be defined as the additional unit of product that a business can produce by using additional unit of input. And marginal revenue product refers to the change that occurs in the total revenue due to the production of additional unit of product.

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Sorry you never got an answer and are only getting one after 2 years :(
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