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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%

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Answer:

The correct answer is letter "C": Geopolitical views of your own (native) country.

Explanation:

According to the excerpt, the purpose of the assignment is improving the quality of a product being manufactured. In that case, it is imperative to first identify what is the geographical and political current situation of the country we are from since this will allow identifying opportunities that can be complemented Turkey's geopolitical opportunities that must be pointed out by their representatives.

8 0
3 years ago
The highest value of total cost was $ 710 comma 000 in June for Horchata​ Beverages, Inc. Its lowest value of total cost was $ 5
marta [7]

Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

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= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

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= $710,000 - (13,000 units × $20)

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= $450,000

We simply applied the above formula

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Answer:

b

Explanation:

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