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Tasya [4]
3 years ago
5

A portfolio consists of the following two funds. Fund A Fund B $ Invested $ 12,000 $ 8,000 Weight 60 % 40 % Exp Return 15 % 12 %

Std Dev 24 % 14 % Beta 1.92 1.27 Corr(A,B) 0.43 Riskfree rate 3.6 % What is the Sharpe ratio of the portfolio?
Business
1 answer:
vova2212 [387]3 years ago
7 0

Answer:

Sharpen Ratio   =            <u>    Rp  - Rf</u>

                         standard deviation of portfolio

                        =    <u>13.8%  - 3.6%</u>

                                     173.11%

                              =   0.05892

                              = 0.059

workings

Return of portfolio   =   Ra*wa  +  Rb*Wb

                            =  15%*0.6  +  12%*0.4  

                           =   9%  +  4.8%  =  13.8%

Standard deviation of portfolio =  square root of variance

= √ stdA²wa² + stadB²wb² + 2wawbcorrAB

= √(24%*0.6)² +(14%*0.4)²  + 2*0.6*0.4*1.27

=  √207.36% + 31.36% + 0.6096

=  √2.9968

= 1.73

=  173.11%

                                                 

Explanation:

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gogolik [260]

Answer:

57.8$

Explanation:

Here we know that:

- One trip to work averages 14 miles

- Therefore, one return trip home-work averages 14*2=28 miles

- You work 20 days per month

So, the average number of miles per month is:

m=28\cdot 20 =560 mi

Then, we also know that the car averages 28 miles per gallon; this means that the number of gallons consumed on average in 1 month is equal to the average number of miles (560) divided by 28:

g=\frac{560 mi}{28 mi/gal}=20 gal

So, 20 gallons per month.

Finally, we know that the cost of the gas is 2.89$/gallon. Therefore, the average total cost per month is equal to the average number of gallons per month (20) times the cost per gallon:

cost = (20 gal)\cdot (\$2.89/gal)=\$57.8

4 0
3 years ago
Knoll, inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000.
Lunna [17]
Cost per unit
(300,000÷15,000)+20=40

Current profit
50×15,000−40×15,000=150,000

Profit change
60×15,000−40×15,000=300,000

units will knoll need to sell for profit to remain the same as before the price change is
(150,000+300,000)÷40=11,250
3 0
3 years ago
Ivan's, Inc., paid $482 in dividends and $586 in interest this past year. Common stock increased by $196 and retained earnings d
Svet_ta [14]

Answer:

$360

Explanation:

We can compute net income to be

The ending balance of retained earnings = Beginning balance of retained earnings + net income - dividend paid.

Where,

Dividend = $482

Change in retained earnings = $122

Hence,

Net income = Dividend - Change in retained earnings

= $482 - $122

Net income = $360

6 0
3 years ago
a car is purchased for $43,000. each year it loses 25% of its value. after how many years will the car be worth $9200 or less? (
Snowcat [4.5K]

After a car is purchased at $43000 and looses 25% worth every year then the car will be worth $9200 or less after four(4) years.

What does Purchase mean?

Purchase is a term used to refer to the acquisition of goods or services in exchange for money. It is a common business transaction and can involve buying something outright or entering into an agreement to pay for it over time.

What does Services mean?

Services is a broad term that refers to any type of work or activity performed to meet the needs of a customer. Services can range from professional services like accounting or consulting to tangible products like food or clothing. Services are typically intangible in the sense that they cannot be touched, felt, or seen, but the benefits they provide are very real.

As per the price of the car which is $43,000  and it looses 25% each year which is $10750. From this we come to know that the car will  be worth of $9200 or less within 4 years.

To know more about Purchase,

brainly.com/question/27975123

#SPJ4

5 0
1 year ago
Common stocks have less security than ______________ stock, but it also has greater potential for reward.
Yuri [45]

Your answer is, Preferred.

<h3><u>What is a Preferred Stock</u></h3>

Preferred stock is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

<h3><u>Impact of a Preferred Stock</u></h3>

Companies that offer preferred shares instead of issuing bonds can accomplish a lower debt-to-equity ratio. That allows them to gain significantly more future financing from new investors. A company's debt-to-equity ratio is one of the most common metrics used to analyze the financial stability of a business.

<h3><u>The 5 types of Preferred Stock</u></h3>
  • cumulative
  • participating
  • convertible
  • callable
  • adjustable-rate

Thus, <u>option c</u> is your answer.

Learn more about a Preferred Stock here: brainly.com/question/18068539

6 0
3 years ago
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