Answer:
a. The portfolio weights that remove all risk is 50%
.
b. The risk-free rate of interest in this economy is 13.5%
Explanation:
The formula for standard deviation of a portfolio, of which i cannot type:
a. If we let sigma p = std. deviation of portfolio
rho 1,2 = correlation
if sigma = 0 and rho = -1, then the first equation can be re-written as :
0 = w1^2 * s1^2 + w2^2 * s2^2 + 2 * w1 * w2 * s1 * s2 * -1
0 = (w1s1 - w2s2)^2
w1s1 = w2s2
w1 * 0.03 = w2 * 0.03
w1 = w2 = 50%
Therefore, The portfolio weights that remove all risk is 50%
.
b. Expected return of the portfolio = 0.5*20% + 0.5*7%
= 13.5%
This portfolio has zero risk, risk free rate = 13.5%
Therefore, The risk-free rate of interest in this economy is 13.5%
Because they feel a strong sense of urgency about their ideas.
<u>Brenda will advise the new employees to avoid interpreting in another's actions until you know the full story</u>
Explanation:
As mentioned in the question that Brenda is a employee orientation trainer for a global corporation and she is asked to address the new recruits and to convey information that will help them in communicating across the culture.
Brenda's advise on dealing with individuals of other culture is that one should not have pre conceived notion about an individual or their culture and in case of a conflict one should not act in a bias manner rather should display the patience of listening to the story from both the ends and then arrive at a conclusion.
so it can be said that <u>Brenda will advise the new employees to avoid interpreting in another's actions until you know the full story</u>
Answer:
overapplied
Explanation:
When we say that manufacturing costs were overapplied, it means that at the beginning of the production process the estimated costs were too high. In other words, the budget considered that it would cost more money to produce the goods.
In this case, overhead costs tend to be overestimated and then overapplied because they rely on past data and efficiency can improve, which lowers costs; or the total production output can be lower than estimated, therefore the company incurred in less costs.
Depending on the cause of the actual lower costs it can be good or bad. If the costs were lower due to improved efficiency, then it is very good. But if the costs were lower due to a lower output, then that is not good.
Answer:
$3.20
Explanation:
Kindly check attached picture for explanation
