1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
RUDIKE [14]
2 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]2 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 %

 

You might be interested in
Suze says that YFB’rs are broke. She gives 10+ reasons why, what are 3 of the reasons of why they are broke?
zysi [14]

Suze named ten reasons why YFB’rs are broke. Below are three reasons she identified:

1)      The company  runs out of cash

2)      The company is overpromising and undelivering

3)      They invested much on products, thus having left with big inventory 

4 0
3 years ago
An example of business-to-business sales is selling ________.
uysha [10]

Answer:

a) grocery items to grocery stores

Explanation:

Business -to -business (B2B) sales occur between different companies unlike Business to Consumer (B2C) sales that are between a company and a individual customers.  To answer this question, you identify an option that shows that a wholesaler sells goods to a retailer who then sells to a customer which is supply of grocery items to grocery stores.

'Automobile insurance to a pet shop owner' and 'evening gowns to Oscar award nominees' are B2C. And 'a washing machine to a theatre company' is irrelevant

5 0
3 years ago
What are five marketing strategies that retailers spend half of their annual budget on?
aalyn [17]

The five marketing strategies includes strategies on 5P's which includes Price, Product, Promotion, Place and People.

The retailers are basically people who sells goods in smaller quantity to the final consumer in the chain of distribution.

The five marketing strategies they spend half of their annual budget on includes on the following:

  • Price: The retailers ensures that prices of their product are reduced below cost price to persuade consumers to buy from them.

  • Product: The retailers need to ensure that varieties of product are available in the stores to satisfy the consumers need.

  • Promotion: Various advertisement and others strategy to persuade consumers needs funds to make successful.

  • Place: The store and outlet need to be where is more favorable and comes with high cost of expenses for the retailers.

  • People; The consumers are given discounts and other incentives to persuade them to come and buy more goods from the retailers.

Learn more about this here

<em>brainly.com/question/14443232</em>

4 0
2 years ago
When a sales job is being filled by an untrained individual, the job specifications list will most likely include ________ as a
AlexFokin [52]

When a sales job is being filled by an untrained individual, the job specifications list will most likely include __<u>E) personality traits</u>___ as a way to predict which candidate will perform the job well.

<h3>What are personality traits?</h3>

Personality traits are some characteristics or qualities associated with individuals.  Some of the personality traits include extroversion, agreeableness, openness, conscientiousness, adaptability, and neuroticism.

<h3>Answer Options:</h3>

A) age and gender

B) length of previous service

C) past job performance

D) relevant certification

E) personality traits

Thus, since the individuals involved are not trained, the most important factor to consider is not age, gender, previous service, past job performance, or relevant certification, but <u>E) personality traits.</u>

Learn more about personality traits here: brainly.com/question/10082381

6 0
2 years ago
Why are benefits of the sale or purchase of bonds?
Anon25 [30]
When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
3 0
3 years ago
Other questions:
  • To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee tra
    13·1 answer
  • In your role as production planner, you have experienced too many stock outs on one particular item. This item has 348 pints of
    14·1 answer
  • Antonio assaulted Mark after the two argued about a parking space. The District Attomey's office prosecuted Antonio on assault c
    13·1 answer
  • Crown Company established a petty cash fund of $600 for incidental expenditures on January 2, 2019. At the end of the month, the
    14·1 answer
  • Investments in securities or mutual funds are not as secure as saving accounts because
    12·2 answers
  • A bank money manager estimates that the bank will experience a liquidity deficit of $400 million with a probability of 10 percen
    9·1 answer
  • Once Starbucks had established its presence in thousands of cities internationally, the company sought to increase the number of
    7·1 answer
  • During March, XYZ Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000.
    10·1 answer
  • The corporate staff in the accounting department at ABC Corporation went on 12-hour days during the holiday season, just like th
    8·1 answer
  • The strategies an organization develops to provide value to the customers it serves is called:____.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!