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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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Answer:

Executive Director, Non Executive Director

Explanation:

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An executive director has operational responsibilities in a firm but a non executive director does not have operational responsibilities in a firm but is involved in planning and policy formation which are strategic activities.

Operational refers to the daily running of a business.

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A servant leader is a leader that believes his/her main goal is to serve the organization. Servant leaders usually value employees' contributions and generally looks for them.

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3 years ago
Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under
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Identified a Geographic segment
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