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shusha [124]
3 years ago
8

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard devi

ation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is .4. The risk-free rate of return is 5%.
The proportion of the optimal risky portfolio that should be invested in stock B is approximately ________.

A) 29% B) 44% C) 56% D) 71%
Business
1 answer:
irakobra [83]3 years ago
3 0

Answer:

A) 29%

Explanation:

W= (.14-.05)(.39^2)-(.21-.05)(.20)(.39)(.4)

(.14-.05)(.39^2)+(.21-.05)(.20^2) - (.14-.05+.21-.05)(.20)(.39)(.4)

B = 71% A =1-0.71= 29%

σ2rp = (.292)(.392) + (.712)(.202) + 2(.29)(.71)(.39)(.20).4

σ2rp = .045804

σrp = 21.4%

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Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process?
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Answer:

  • <em>She should research the cost of living of different locations to compare against the offered salaries.  </em>
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Explanation:

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  • Secondly, the benefits included in salaries is also to be considered. Does it includes medical insurance, transport allowance etc.?

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The Christian Reformed Church, of which she was a member, prohibited working on Sunday. Therefore, she did not go to work on tho
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In the given case, Ms William has the right to exercise religion but the company made some hurdles for her to do so.

Hence we can conclude that the rights of freedom of religion has been violated.

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(A) $500 million

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1/10,000 of the real GDP is = $50,000

RGDP = 50,000 ÷ 1/10,000

RGDP = 50,000 × 10,000 = $500,000,000

If special interest group Q would have to be indifferent (not care which policy is applied at the given time) between the 2 policies, then the economic growth policy would have to increase the size of the RGDP (the economic pie) by an amount sufficient enough for them to get their net benefit of $50,000.

The RGDP figure above ($500 million) is the amount by which RGDP (real gross domestic product) should grow, if Group Q will still get their net benefit when only the economic growth policy (EGP) is applied.

In this case, the EGP applied in place of the TP (transfer policy) would still fetch Group Q the minimum net benefit of $50,000

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