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bija089 [108]
3 years ago
7

Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 45%. Stock B has an expected return of 18%

and a standard deviation of 65%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 40% in Stock A and 60% in Stock B
Business
1 answer:
Alisiya [41]3 years ago
5 0

Answer:

Portfolio return = 0.156 or 15.6%

Explanation:

The expected return of a portfolio is the weighted average of the individual stocks returns' that form up the portfolio. For a two stock portfolio, the expected return is calculated as follows,

Portfolio return = wA * rA + wB * rB

Where,

  • w is the weight of each stock
  • r is the expected return of each stock

Portfolio return = 0.4 * 0.12 + 0.6 * 0.18

Portfolio return = 0.156 or 15.6%

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Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 perce
AlekseyPX

Answer:

50 billion

Explanation:

Investment declines by $130 billion for every 1 percentage point increase in the real interest rate.

Decline in Investment because of higher real interest rate:

= 2 × 100

= $200 billion

Increase in Investment because of higher expected rate of return:

= 1 × 150

= 150 billion

Total decline in investment:

= -200 + 150

= 50 billion

Therefore, 50 billion of investment will be crowding out.

8 0
3 years ago
Select the examples that best demonstrate likely tasks for Administration and Information Support workers. Check all that apply.
Vera_Pavlovna [14]

Answer:

  • Bart types information into a computer database
  • Phuong works on a research project and creates a report for her boss.
  • Anton answers phone calls and greets guests who visit a company

Explanation:

Administrative and  Information Support workers provide support to the company's executives and management. This support includes general office management,  welcoming and guiding visitors, answering phone calls,  assisting and responding to clients queries, and clerical work. They also do data entry and records maintenance.

Administrative and  Information Support workers require Strong administrative and multi-tasking skills to execute their mandate effectively.

6 0
3 years ago
Read 2 more answers
What is the wholesaling industry??
FromTheMoon [43]
Wholesaling is the opposite of retailing. In a wholesaling industry, goods or products are being sold, and distributed to retailers. The wholesalers receives large quantities of these products and they are the ones who sells these to the retailers which are then sold to consumers. Hope this answers your question.
4 0
4 years ago
Joshua needed money for some unexpected expenses, so he borrowed $5,355.26 from a friend and agreed to repay the loan in seven e
konstantin123 [22]

Answer:

10%

25.14 years

Explanation:

A financial calculator can be used to solve these problems

PMT = $-1,100

PV = $5,355.26

FV = 0

N = 7

Compute I = 10%

PMT = $-25,000

FV =  $1,387,311

I = 6%

PV = 0

Compute N = 25.14 years

8 0
4 years ago
If you earned $10-an-hour in 2005 when the cpi was 100, and you earn $11-an-hour today when the cpi is 120, then your real wage
Eva8 [605]
The consumer price index, or cpi, has the following formula:

CPI =  \frac{Current \ Period \ Price}{Base \ Period \ Price} \ x \ 100

Let's compute the real base period price for the cpi today.

120 = \frac{11}{Base \ Period \ Price} \ x \ 100

Base Period Price = $9.2

Then, we compare the apparent with the real:

Real Base Period:  $11 - $9.2 = $1.8
Apparent Base Period: $11 - $10 = $1

Real > Apparent, thus your real wage rate has increased since 2005.
4 0
3 years ago
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