I believe it's <span>b. grow its manufacturing sector.
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Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
Answer:
d. depository institutions
Explanation:
Depository institutions include institutions such as banks, savings associations, and credit unions. They encourage money savings.They are usually insured on a federal level.
When customers save their money with this institutions, the institutions use the money to provide loan facilities to people.
Answer: <u>"A. Just-in-time inventory"</u> is a system for managing demand-dependent inventories that minimizes the inventory holdings of the firm at any given time.
Explanation: The Just in time system is an inventory maintenance policy at the lowest possible level where suppliers deliver just what is necessary at the time necessary to complete the production process. In this way, we seek to reduce the costs of maintaining higher inventories, purchasing costs, financing of purchases and storage.
False.
Explanation:
in addition to the service charges applicable to the no frills account was substantially lower than that of the regular savings accounts as a result the zero balance requirement that most banks offered,the account became commonly known as ZERO BALANCE ACCOUNT.
