Answer:
14.656%
Step-by-step explanation:
Data provided in the question:
Rate of return, r = 4% = 0.04
Risk aversion of A = 1.85
Standard deviation, σ = 24%
Now,
we have the relation
A = (E - r) ÷ σ²
E = expected return on portfolio
r = Risk free rate
on substituting the respective values, we get
1.85 = (E - 0.04) ÷ (0.24)²
or
0.0576 × 1.85 = (E - 0.04)
or
0.10656 + 0.04 = E
or
E = 0.14656 or
E = 0.14656 × 100% = 14.656%
Par value means that the stock is quoted at the face or principal value.
If Jerry bought the stock at the face value, it means that the stock is now below its face value, and that is said that the stock is below par.
Therefore, the answer is below par.
Answer: below par.
It is true. here is how........
4-0 is rounding down
5-9 is rounding up
when rounding to the tenths place you look at the hundredths place to find the answer.
Answer:
is c
Step-by-step explanation:
