Answer:
Variance = 5.44
Explanation:
The variance of a portfolio is a measure of the deviation of the returns of the assets making up the portfolio. Using the standard deviation, the variance can be worked out.
<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.</em>
<em>Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .
</em>
<em>The variance would be determined as follows:</em>
Variance = Sum of P×(R- r )^2
P- probality
R- return on each asset
r- Expected return on portfolio
r =( Wa*Ra) + (Wb*Rb)
Expected return (r) = (9% × 0.68 ) + (4% × 0.32) = 7.4
%
Outcome R (R- r )^2 P×(R- r )^2
Recession 9 2.56 1.74
Boom 4 11.56 <u> 3.70
</u>
Total <u> 5.44
</u>
Variance = Sum of P×(R- r )^2
Variance = 5.44
Even though the main resources for car production and development like gasoline and craft was mainly used for airplanes and the government had rationalized these products, the truth is that auto production increased because of the transportation needed for aircraft and weapons. Also truth is that many of the automobile companies started to support many military effort so bsically all of them became military production factories.
It is called Federal Reserve Banking.
Consider the wealth effect, interest rate effect, and international trade effect. Of these, the wealth effect is the most significant and the international effect is the least significant.
<h3>What is the wealth effect?</h3>
This is the theory that states that people spend more money on commodities as they experience an increase in their wages.
<h3>What is the international effect?</h3>
This is the theory that the given differences that exist in nominal interest rate of countries is useful for prediction of changes in interest rate.
Read more on wealth effect here; brainly.com/question/26960365
Answer:
Often, people who are in the habit of saving money can be seen as being overly concerned, but the purpose of having a reserve is precisely to avoid greater worries in the face of unforeseen events.
