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Jlenok [28]
3 years ago
6

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard devi

ation of return of 20.0%. Stock B has an expected return of 10% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 6%. The proportion of the optimal risky portfolio that should be invested in stock A is ________.
Business
1 answer:
Luba_88 [7]3 years ago
8 0

Answer:

0

Explanation:

Given that :

Expected return on stock A (Ea) = 14% = 0.14

Expected return on stock B (Eb) = 10% = 0.1

Standard deviation of return (Sa) = 20% =0.2

Standard deviation of return (Sb)=5% = 0.05

Riskfree rate (rf) = 6% = 0.06

Correlation Coefficient between A and B (r) = 0.50

Wa = (.14-0.06)(.05)^2 - (.1-.06)(.20)(.50)(0.050) /

(.14-.06)(.05)^2 + (.10-.06)(.20)^2 -(.14-.06+0.1-0.06)(0.05)(0.20)(0.5)

= 0 / 0.012

= 0

Weight or proportion of optimal risky portfolio that should be invested in stock A.

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A stadium incurs a number of costs to accommodate fans. If a stadium pays $16,000 for labor, $55,000 for leasing parking space,
MatroZZZ [7]

Answer:

12. 21 % ; 41.98 % and  45.80 % as below

Explanation:

Total cost for the stadium is

labor $      $16,000

leasing the parking fee   $55,000

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Total cost     $131,000

Percentage per item

1. labor = 16000/131000 x 100

  =12.21 percent

2.leasing parking space= 55000/131000 x 100

     =41. 98 percent

3.Parking space= 60,000/131000x100

   =45.80 percent

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3 years ago
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jeka94

I'd say that the answer is true

7 0
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geniusboy [140]
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Correct answer: B
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wlad13 [49]

Answer:

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Explanation:

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Balance of trade:

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