Answer:
A.$2,250
B.$1,152
Explanation:
A.
$1500 + 3000*[3000/12000]
$1,500 + $750
= $2,250
B.
{[820/12000]*3000} + {[820/1300]*1500}
=$205 +$946
=$1,152
Answer:
Portfolio return = 0.156 or 15.6%
Explanation:
The expected return of a portfolio is the weighted average of the individual stocks returns' that form up the portfolio. For a two stock portfolio, the expected return is calculated as follows,
Portfolio return = wA * rA + wB * rB
Where,
- w is the weight of each stock
- r is the expected return of each stock
Portfolio return = 0.4 * 0.12 + 0.6 * 0.18
Portfolio return = 0.156 or 15.6%
Answer:
The correct answer is: units-of-production.
Explanation:
In the depreciation method per production units, an annual production quantity is assigned according to the total calculation of potential units that can be produced in the useful life of the good. In order to calculate the total value, the units that were actually produced must be multiplied by the depreciation cost of each unit.
Answer:
Variance = 0.02141851
Explanation:
We first calculate the mean for the stocks
Mean = (0.1858 - 0.0558 + 0.2081) / 3
Mean = 0.3381 / 3
Mean = 0.1127
Variance = [(0.1858 - 0.1127)^2 + (- 0.0558 - 0.1127)^2 + (0.2081 - 0.1127)^2] / 3 -1
Variance = [0.0731^2 + (-0.1685^2) + 0.0954^2] / 2
Variance = 0.00534361 + 0.02839225 + 0.00910116 / 2
Variance = 0.04283702 / 2
Variance = 0.02141851
The variance of returns is 0.02141851
