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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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Bas_tet [7]

The best way people can use their Personal loans is to buy or pay for groceries. As there are other separate loans for the things like car, home and pay for college.  

<h3>what is a personal loan?</h3>

A loan is issued for non-essential purposes, usually to a person with a good credit score who is not required to submit collateral to back up the loan.

A personal loan can be utilized for practically any reason, including settling credit card debt, home upgrades, and large purchases.

Thus option D is correct.

For further details about the personal loan refer to this link:

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2 years ago
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Zeta Corporation is a manufacturer of sports caps, which require soft fabric. The standards for each cap allow 2.00 yards of sof
ad-work [718]

Answer:

Direct material price variance= $2,500 favorable

Explanation:

Giving the following information:

The standards for each cap allow 2.00 yards of soft for $2.00 per yard. During January, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps.

<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.1)*25,000

Direct material price variance= $2,500 favorable

7 0
2 years ago
Select all of the true statements regarding Gary Hamel's thoughts on management:
SIZIF [17.4K]

Answer: • management innovation is essential to future organizational success

• we must look at management as a process, and then make improvements and innovation ongoing and systematic

• much of management theory is dated and doesn't fit the current realities of organizational life

Explanation:

The true statements regarding Gary Hamel's thoughts on management are:

1. management innovation is essential to future organizational success

2. we must look at management as a process, and then make improvements and innovation ongoing and systematic

3. much of management theory is dated and doesn't fit the current realities of organizational life

According to Gary Hamel, yesterday's best practices of organizations can not be creative or adaptable for the business challenges tomorrow.

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3 years ago
Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United S
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Answer:

D. All the Above

Explanation:

A. Lead to greater productivity

This is true because through specialization and competitive advantages you can achieve greater productivity in the production of goods and services. If you have a competitive advantage, it is because you have more capital, infrastructure and specialized human capital in the production of a specific type of good or service so that a greater amount of that good can be produced than another country in the same time.

B. Lead to greater output even if you can do everything better than someone else.

This is true since although a country has a competitive advantage in all industries, concentrating its labor and capital in the production of the good or service in which it has the greatest competitive advantage will allow a higher level of production in that sole good/service than if he divided his resources into the production of other goods and services.

C. Lead to international trade and overall gains for the nations involved.

This point, despite being true, is debatable. In theory, international trade allows to reach greater levels of wealth to the countries involved by being able to exchange the goods in which they have competitive advantage for others that if they were produced in the country they would consume part of their resources by not having such high productivity as if it will trade with a country that does have the capacity to produce it.

Having this clear, we can say that all of the above are true, so the answer is D.

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3 years ago
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The answer would be the stockholders w=equity minus
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