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algol13
3 years ago
6

Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 45%. The T-bill rate

is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 29 % Stock B 38 Stock C 33 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 14%. a. What is the proportion y? (Round your answer to 1 decimal places.)
Business
1 answer:
quester [9]3 years ago
5 0

Answer:

80%

Explanation:

In order to calculate this, we use the portfolio expected rate of return (PERR) as follows:

PERR = Rf + (Rp - Rf)y …………………………………………….. (1)

Where;

PERR = Portfolio expected rate of return = 14%, 0.14

Rf = T-bill rate = 6%, or 0.06

Rp = Expected rate of return = 16%, 0.16

Substituting the values into equation (1), we have:

0.14 = 0.06 + (0.16 – 0.06)y

0.14 – 0.06 = 0.10y

y = 0.08/0.10 = 0.80, or 80%

Therefore, the proportion y is 80%  

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The process of linking relief and development is often a major deviation from the missions of both development and relief agenci
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The process of linking relief and development is often a major deviation from the missions of both development and relief agencies.-----False

Linking relief and development:

The key to linking relief and development from the development side is to find ways of reducing (a) the frequency and intensity and (b) the impact of shocks, which will in turn reduce the need for emergency relief.

What is development and relief agencies?

IRD is a nonprofit, nongovernmental organization responsible for implementing relief and development programs worldwide. IRD's mission is to empower the world's most vulnerable communities to achieve self-sufficiency through innovative solutions, applied knowledge and targeted expertise.

Learn more about development and relief agencies:

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3 0
1 year ago
Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities.
storchak [24]

Answer:

Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000

Explanation:

Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).

After all that is done, all we have to do is to solve the following equiation for "A".

PresentValue=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} }

Where:

A= Annuity or monthly payment

r= Rate (effective monthly, in our case)

n= Periods to pay (360 months)

Everything should look like this.

900,000=\frac{A((1+0.01)^{360} -1}{0.01(1+0.0.1)^{360} }

900,000=A(97.2183311)

\frac{900,000}{97.2183311} =A

A=9,257.51

Best of luck.

6 0
3 years ago
1.2 Explain the concept of the labour market to a Grade 12 school-leaver. Give a
Marianna [84]

Answer:

The labor market is the phrase used to describe the supply of labor by employees and demand of labor by the employers as such there is an interaction between the workers and the employers where wage is paid to the workers by the employers for the labor the workers supplied

Being educated gives an employee the capacity to be more productive and gives an indication of the potential of prospective employees to recruiters and employers. Therefore, qualifications attained are an advantage when seeking employment alongside many several other job seekers

Therefore, a grade 12 school-leaver competing for a job alongside several others with similar or tertiary education is less likely to secure a desired job or vocation

However, with a tertiary education, such job seekers would more readily convince recruiters about their ability to satisfactorily perform their desired job

Explanation:

6 0
3 years ago
abbie is an unmarried individual who earned a gross income of $74827 last year. she make $3839.31 in ira contributions, donated
musickatia [10]
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8 0
3 years ago
As the number of firms in an oligopoly increases, a. the total quantity of output produced by firms in the market gets closer to
Aleksandr [31]

Answer:

A is the correct answer.

Explanation:

Oligopoly is the market form in which a small number of large sellers dominate. It results in the reduction of the competition and leads to higher prices for consumers. they have their market structure. In oligopoly each firm stays aware of others,  hence their decisions influence others and vice versa. The developed economies are dominated by Oligopolies. For example, if the total market share of the American telecom companies (Verizon wireless, AT and T and T mobile ) is combined, it comes out to be more than ninety percent.

4 0
3 years ago
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