1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sladkaya [172]
3 years ago
14

Consider two stocks X and Y with the following expected returns (in percent) and standard deviations. How much of your $10,000 t

otal investment should you invest in stock Y if you would like a portfolio with zero risk and the correlation between the two stocks is -1 (perfectly negatively correlated)?
Stock Expected return Standard deviation

X 10 75
Y 20 50
Business
1 answer:
charle [14.2K]3 years ago
8 0

X $4000

Y $6000

Explanation:

Let w be invested in Stock X,

Correlation = -1

Standard Deviation = w(0.75) - (10,000 - w)(0.50)

So,

For standard Deviation to be 0,

0 = 0.75w - 5,000 + 0.50w

w = $4,000

Amount invested in Stock X = $4,000

Amount invested in Stock Y = $6,000

You might be interested in
The payback period is the period of time it takes an investment to generate sufficient cash flows to?
Debora [2.8K]

The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to produce a positive annual cash flow.

What is the payback period for the cash flows?

The time frame needed for a project's financial inflows to more than equal its initial cash outlay is known as the payback period. This formula is helpful for risk reduction analysis since a project that produces a return quickly is less hazardous than one that produces the same return over a longer time frame.

Does positive cash flow mean profit?

Even though a corporation reports negative net income, it is still feasible for it to have positive cash flow. A corporation is financially sound and successful if its net income is positive. A corporation's increase in liquid assets indicates a positive cash flow if the company has positive cash flow.

Learn more about payback period: brainly.com/question/13978071

#SPJ4

8 0
2 years ago
Which of the following statements about federal student loans is true?
svetlana [45]

I believe the answer is: A. the interest rate on your loan will be fixed over time

.

There are two things that separate a student loan with any other type of loan. The first one is that there is no time limit of when the student loan must be paid. The second one is that unlike any loan, student loan would not dissapear even if you declare a personal bankruptcy.

6 0
3 years ago
Read 2 more answers
Doc's ribhouse had beginning equity of 79000 and net icome of 23000. The company has no other transaction impacting equity. Calc
____ [38]

Doc's ribhouse ending equity would be $102,000 if has beginning equity of 79000 and net icome of 23000.

<h3>What is equity?</h3>

Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated by the difference between liabilities and assets recorded.

Doc's ribhouse beginning equity

= $79,000

Net income

= $23,000

Ending equity

= ?

Ending Equity

= Beginning Equity + Net Income - Dividends

= $79,000 + $2

= $102,000

Hence, Doc's ribhouse ending equity would be $102,000

Learn more about equity here : brainly.com/question/11556132

#SPJ1  

7 0
3 years ago
Monica has a Roth IRA to which she contributed $15,000. The IRA has a current value of $37,500. She is 54 years old and takes a
Korolek [52]

Answer:

$10,000

Explanation:

Monica has a Roth IRA in which she contributed $15,000

The IRA has a current value of $37,500

Monica is 54 years old

She takes a distribution of $25,000

Therefore, the amount of distribtion that will be taxable can be calculated as follows

Amount of taxable distribution= $25,000-$15,000

= $10,000

Hence the amount of distribution that will be taxable to Monica is $10,000

7 0
4 years ago
which categoryh of inventory holding costs would be much higher than average for rapidly chaning industries
Alex787 [66]

The correct option is (c) i.e, The pilferage, scrap, and obsolescence category of inventory holding costs are much higher than average for rapid-change industries such as PCs and cell phones.

<h3>What does Inventory Holding Cost mean?</h3>

Expenses associated with keeping inventory at a warehouse are known as inventory holding costs. Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms.

Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.

Businesses must take demand planning and demand sensing into account when these prices rise. These technologies can help businesses keep the right amount of stock on hand.

Therefore, The category of inventory holding costs that are depicted, based on the information provided comprises pilferage, scrap, and obsolescence.

The complete question is:

Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?

A) housing costs

B) material handling costs

C) pilferage, scrap, and obsolescence

D) investment costs

To know more about inventory holding costs refer to: brainly.com/question/15298484

#SPJ4

6 0
2 years ago
Other questions:
  • How does the nurse arrange the events that take place during the promotion of glucose transportation into the cells through cell
    5·1 answer
  • Low level employees pose the greatest threat to information security. <br> a. True <br> b. False
    7·1 answer
  • The salesperson for the Big Apple Sign Corporation was trying to get a hardware storeowner to buy a new kind of advertising tool
    9·2 answers
  • Suppose the banking industry just released a major annual report which indicated that the demand for housing increased by nearly
    13·1 answer
  • Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty'
    15·1 answer
  • A vacation house in Colorado is
    10·1 answer
  • Cox Corporation had 1,200,000 shares of common stock outstanding on January 1 and December 31, year 2. In connection with the ac
    8·1 answer
  • (True) or (False)? The total amount of depreciation accumulated for an asset over its entire life will differ depending on the m
    14·1 answer
  • Write the relationship between audit and finance?
    9·1 answer
  • Chile is able to grow and harvest grapes and strawberries in the months of October through April, while in the United States suc
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!