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
kotykmax [81]
3 years ago
13

Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 1

5%, betas of 1.6, and standard deviations of 30%. The returns of the two stocks are independent, so the correlation coefficient between them, rXY, is zero. Which of the following statements best describes the characteristics of your 2-stock portfolio?
a. Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%.b. Your portfolio has a beta equal to 1.6, and its expected return is 15%.c. Your portfolio has a standard deviation of 30%, and its expected return is 15%.d. Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6.e. Your portfolio has a standard deviation greater than 30%, and a beta equal to 1.6.
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer:

b. Your portfolio has a beta equal to 1.6, and its expected return is 15%

Explanation:

when a portfolio is given, there exist the posibility to agregate the different calculations made, this is possible using the weights of the different assets whose are part of the portfolio, so in this specifinx example the beta portfolios is calculated as  1.6*50%+1.6*50%=1.6 and the expected return is calculated using the same logic 15%*50%+15%*50%. it does not apply for deviation of the portfolio, at this point is important to see that as there is not correlation coeficient, so there will no be calculated the covariance, so at the end the standar deviation aggregated is 0%

You might be interested in
Someone help me please.... I really appreciate
satela [25.4K]
Personal goal: A personal goal I have is to be and active citizen to my community. Help others, pick up trash.

High school Goal: My high school goal is to graduate, so I can get into and Ivy League school.

Financial goal: My goal is to have enough money for my college tuition.
7 0
2 years ago
g rporation's budgeted sales for February are $334,000. Webster pays sales representatives a commission of 6% of sales dollars.
UNO [17]

Answer:

$28,240

Explanation:

Total sales = $334,000

Variable cost:

Sales commissions = $334,000 × 6%

                                = $20,040

Total fixed costs = Sales manager's salary + Advertising expenses

                            = $5,300 + $2,900

                            = $8,200

Total selling expenses = Total variable cost + Total fixed cost

                                      = $20,040 + $8,200

                                      = $28,240

Therefore, the total selling expenses to be reported on the selling expense budget for the month of February is $28,240.

5 0
3 years ago
Which of the following is the last step in creating budget
Zolol [24]
<span>Answer D, determining savings or debt, is correct. The first step is identifying and writing down your financial goal(s). The second one is to start writing down every single one of your transactions, this is the most important because it shows you your spending habits. The third step is to create the actual budget. Set aside a certain amount of money for each bill/necessity. The last step is to determine what your savings are.</span>
6 0
3 years ago
Read 2 more answers
Where I’m an e mail would you find information about the action required ?
Alinara [238K]

Begin with a greeting. Always open your email with a greeting, such as “Dear Lillian”. ...

Thank the recipient. If you are replying to a client's inquiry, you should begin with a line of thanks. ...

State your purpose. ...

Add your closing remarks. ...

End with a closing.

3 0
3 years ago
Read 2 more answers
Suppose that in an attempt to induce citizens to conserve energy, the government enacts regulations requiring all air conditione
Nana76 [90]

Answer:

(A) Because the regulation effectively reduced the price of cool air, consumers with sufficiently elastic demand might have bought substantially more of it.

Explanation:

If the demand for energy services remains constant, improving energy efficiency will reduce energy consumption and carbon emissions. However, many efficiency improvements do not reduce energy consumption by the amount provided by simple engineering models. This is because they make energy services cheaper and therefore increases the consumption of those services.

For example, since low-fuel vehicles make travel cheaper, consumers can choose to drive further, thus offsetting some of the possible energy savings. Similarly, an extensive historical analysis of improvements in technological efficiency has conclusively demonstrated that improvements in energy efficiency were almost always overcome by economic growth, which resulted in a net increase in resource use and associated contamination.

3 0
3 years ago
Other questions:
  • Compared to perfect competition, a monopoly will produce ________ output, and charge a ________ price. more; lower more; higher
    14·1 answer
  • Is Ann Wood a high-involvement manager? If so, provide evidence. If not, how well do you think she’ll perform in her new job as
    9·1 answer
  • The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.
    11·1 answer
  • Price floors usually result in ___________________.
    8·1 answer
  • If a society decides to produce consumer goods from its available resources, it is answering the basic economic question,
    14·1 answer
  • Industries manufactures​ 3-D printers. For each​ unit, $3,400 of direct material is used and there is​ $2,600 of direct manufact
    12·1 answer
  • Sully Company provided the following information for last month. Production in units 3,000 Direct materials cost $7,000 Direct l
    14·1 answer
  • describe the principle of supply and demand including how it affects the prices of the goods and services
    10·1 answer
  • In QuickBooks Online, the Products and Services list contains the items that will appear on your client's purchase and sales tra
    15·2 answers
  • In completing form fda 1572, statement of investigator, the investigator agrees to:.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!