Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
False a rectangle could never be a square
Answer:
Im sorry but the other 2 answers are cut off, I think it's B)
Step-by-step explanation:
Your answer would be the last option: What will happen to the individual sections cannot be determined, but the size of the two sections together increases.
This is because angles on a straight line add to 180°, so if angle C decreases, angles A and B must collectively increase to make up for the loss. For example, if C = 20° and it decreases to 15°, A + B + C would equal 175° and so A and B would need to increase to make it 180°.
The reason we can't determine what happens to the individual sections is that they could either both increase, or one could increase and one could decrease, as long as they collectively make up for the decreased angle.
I hope this helps! Let me know if you have any questions :)
10% of $20 is 2 so the shirt would be $18 before tax
