With stocks of 8% for A and 16% for B, The global minimum variance is given as 10.5 percent
<h3>How to solve for the variance</h3>
The expected return of the stock for the country a is given as 0.05
The Weight of this country's stock market WA = 0.5
The expected return of the stock for the country a is given as 0.16
The Weight of this country's stock market Wb = 0.5
Expected Return of the portfolio can be calculated as
= (WA x RA) + (WB * RB)
Expected Return of the portfolio = (0.5x 0.05 ) +(0.5*0.16)
= 0.105
= 10.5%
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Explanation:
Breads such as bagels and pretzels are made by boiling them first because boiling sets the crust before it is placed in the oven. The starch on the exterior quickly gels and forms a barrier. This keeps the water from penetrating very far into the bread. Bagels are usually boiled for 30 to 60 seconds per side.
Answer:
Complexity
Explanation:
As an innovation reduces the difficult of a certain activity or process it will have a better reception and therefore, a higher rate of diffusion.
The Toaster-matic 2000 has a knowledge barrier thus, while there is relative advantage(better benefit than any competition) in his use the diffusion is diminish <u>by his complexity. </u>
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Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.
Answer:
U.S. businesses are known for their technological advances and their ability to implement change;
True
Explanation:
The united States can be described as the pioneer in the free market economy. The free market economy generally means that private businesses control how the market behave with little interference from the government. This allows market forces of supply and demand to take precedence in deciding market prices of goods and services. For example, when the demand for a certain good or service exceeds the supply, the price of that particular good will rise. On the other hand, when the demand for a particular good or service is lower than the supply, the price of the good or service drops. The equilibrium price is the price where the forces of demand and supply balance.
The free market system relies majorly on competition between businesses. Economist like Adam Smith postulated that if a free market runs it's course without interference, the equilibrium price will be ultimately reached. Since in a free market there is a lot of competition, most businesses will have an incentive to improve their technology and also adapt to change faster to gain competitive advantage over it's peers.
