Calculate the total amount invested by summing up all the values of the investment.
Total = 50,000
Calculate the weight of each investment. For WOOPS, weight = 5000 / 50000 = 10% and so on.
Now, Expected Return = sum of weight x Returns = 10% x 0.14 + 20% x 0.16 + ... + 18%x 0.18 = 16.01%
b) Similarly,
Beta of the portfolio = sum of weight x beta = 10% x 0.6 + 20% x 0.8 + ... + 18% x 0.18 = 0.7605
c) Portfolio has less systematic risk as the beta for the average market is 1, which is above the portfolio
d) Using CAPM, Return = Rf + beta x (Rm - Rf) = 4% + 0.7605 x (14% - 4%) = 11.605%
To calculate the expected return of a portfolio, the investor needs to know the expected return of each security in the portfolio and the total weight of each security in the portfolio. This means that investors need to sum the weighted averages of the expected returns (RoRs) of each security.
Investors are based on estimates of the expected rate of return on securities, assuming that what has proven to be true in the past will be true in the future. Investors do not use the structural view of the market to calculate the expected return. Instead, it determines the weight of each security in the portfolio by dividing the value of each security by the total value of the security.
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The answer is 9
Explanation:
We know the total amount of spaghetti sauce is 20.5 cups; additionally, each container can be filled with a maximum of 2.5 cups of this sauce. In this context, the process to know the number of containers Mr. Rush needs to store all the sauce is to divide the total amount by the amount each container can hold.
20.5 cups of sauce ÷ 2.5 cups per container = 8.2 containers
This means 8 containers can be completely filled and a ninth container is required to hold the small amount of the sauce missing (0.2)
You would do:
2x^2 = 16^2
X^2 = 128
X = 8 root2
It is B , I literally just took this test
