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tresset_1 [31]
3 years ago
13

Consider two perfectly negatively correlated risky securities, X and Y. Security X has an expected rate of return of 9% and a st

andard deviation of return of 27%. Y has an expected rate of return of 17% and a standard deviation of return of 39%. What is the weight of security Y in the minimum variance portfolio? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Business
1 answer:
Aneli [31]3 years ago
5 0

Answer:

0.41

Explanation:

The computation of the weight of security Y in the minimum variance portfolio is shown below:-

Weight of security X = Standard deviation of security Y ÷ (Sum of the standard deviation of securities)

= 39% ÷ (39% + 27%)

= 39% ÷ 66%

= 59.01%

Weight of security Y = 1 - Weight of security X

= 1 - 59.01%

= 0.41

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Farmer and Taylor formed a partnership with capital contributions of $250,000 and $300,000, respectively. Their partnership agre
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Answer:

Taylor's capital $57,500

     To Income summary  $25,000

     To Farmer's capital  $32,500

(Being the allocation of the net loss is recorded)

Explanation:

Before passing the journal entry we need to do the calculations which is shown below:

Since the net loss for the current year is $25,000

And, the amount receiver per year is $90,000

So , the total amount is

= $25,000 + $90,000

= $115,000

Now it is equally dividend i.e $57,500 each

So, the farmer amount credited by  

= $90,000 - $57,500

= $32,500

And, the taylor account debited by  $57,500

So, the journal entry is

Taylor's capital $57,500

     To Income summary  $25,000

     To Farmer's capital  $32,500

(Being the allocation of the net loss is recorded)

This is the answer but the same is not provided in the given options

3 0
3 years ago
Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away
Daniel [21]

Complete Question:

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Group of answer choices

A. irregularities and errors

B. team problems

C. a potential merger

D. tax breaks

E. competence

Answer:

A. Irregularities and errors.

Explanation:

In this scenario, Smith Commercial Development has effective control processes, allowing its managers to discover irregularities and errors in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Generally, managers are saddled with the responsibility of controlling various aspects of an organization (business) and as such are required to improve the effectiveness of their control processes. An effective control process ensure that every information at various levels of organization such as bookkeeping (financial statements) are accurate through the use of corrective actions.

5 0
4 years ago
Jessie's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina. This is an example of a ____ busi
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It should be noted that Jessie is into a Distribution business when she sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina.

<h3>What is Distribution business all about?</h3>

Distribution in business can be regarded as an activity of both selling and delivering products and services from manufacturer to customer.

It often called product distribution and it helps to ensure that customers and all members of the distribution channel are happy.

Learn more about Distribution business at:

brainly.com/question/24448358

7 0
2 years ago
Which action is an example of a consumer making a purchase through a direct marketing arrangement?
Vladimir [108]

By providing customers with a direct line to vendors through the mail, phone, or computer, direct marketing enables them to make purchases from the comfort of their own homes or places of employment. Telemarketing, catalog sales, online shopping, and direct mail are a few examples of direct marketing.

<h3><u>What Is Direct Marketing?</u></h3>

Direct marketing is any form of advertising that reaches out to customers directly, as opposed to going through an intermediary like the media. Campaigns using text messaging, social media, email, and the postal service are some of the delivery techniques used. Direct marketing is called that because it frequently eliminates the middlemen, such as the media.

<u>The Workings of Direct Marketing</u>

In contrast to traditional public relations efforts that broadcast information through a third party, like media outlets or mass media, direct marketing initiatives operate autonomously to engage with target audiences.

In direct marketing, businesses employ social media, email, postal, phone, and SMS campaigns to disseminate their content and make sales pitches. Direct marketing frequently attempts to personalize the message by inserting the recipient's name or city in a prominent area in order to boost interaction, despite the occasionally enormous volume of communications distributed.

Learn more about marketing with the help of the given link:

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#SPJ4

4 0
2 years ago
Ron and Annie have $1,239.45 in their checking account. During the week Annie goes to an ATM and withdraws $80. The following we
expeople1 [14]

Answer:

$1,421.19

Explanation:

Given:

Initial amount in Checking account = $1,239.45

Amount left after the withdraw of $80 from ATM

= $1,239.45 - $80

= $1159.45

Now amount after the deposit of paycheck of $689.65

= $1159.45 + $689.65

= $1849.1

The total amount of online bills = $212.80 + $55 + $49.76 + $110.35 = $427.91

Now, The online bills paid will be debited from the account

Therefore,

The remaining balance in the account

= $1849.1 - $427.91

= $1,421.19

5 0
3 years ago
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