1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
2 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]2 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

You might be interested in
When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by?
sergij07 [2.7K]

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by <u>selling common stock</u>. Long-term funding can be defined as any financial tool with maturity going beyond one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

<h3>What is a retained earnings?</h3>

Retained earnings are the total of profit an establishment has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.

Therefore, the correct answer is as given above

learn more about retained earnings: brainly.com/question/25631040

#SPJ1

8 0
2 years ago
Some examples of opportunity costs that should be included in project analysis are?
Reptile [31]

Some examples of opportunity costs that should be included in project analysis are that, skilled employees who are moved from an existing project to the new project causing a loss in the existing project.

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. Opportunity cost is a great tool for project selection in many organizations.

The opportunity cost is the difference between the net value of the path that was chosen and the net value of the best alternative that was not chosen.

There is an example of opportunity cost which should be included in the project analysis. The situation where skilled employees are moved from an existing project to the new project causing a loss in the existing project, should be analyzed.

Hence, the answer was given and explained above.

To learn more about the opportunity cost here:

brainly.com/question/12121515

#SPJ4

4 0
2 years ago
While a(n) Blank______ firm views the world as one market and emphasizes cultural similarities across countries rather than diff
givi [52]
  • A firm that treats the whole world as one market by emphasizing the similar cultures in all the countries is called a global marketing firm.
  • A firm that observes the world is comprised of different countries and done marketing of products in each country in a varied manner is called a multinational marketing firm.

<h3>What is a marketing firm?</h3>

A marketing firm is an entity that enabled a business to create, execute and sustain the marketing strategies in the consumer market.

  • The global marketing firm is the one that creates a standardized market in the scenario of similar cultures and adapts when the cultures are different in the worldwide market.
  • The multi-national marketing firm is the entity that introduces varied products, their branding, and promotion in various countries in which they have their businesses.

Therefore, the global marketing firm focuses on marketing in the entire world whereas the multinational marketing firm focuses on the country in which they have their business set up.

Learn more about the marketing in the related link:

brainly.com/question/27155256

#SPJ1

5 0
1 year ago
Coolibah Holdings is expected to pay dividends of $ 1.10 every six months for the next three years. If the current price of Cool
Viktor [21]

Answer:

$25.15  

Explanation:

The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:

=fv(rate,nper,pmt,-pv)

rate is the semiannual cost of capital i.e 14%/2=7%

nper is the number of dividend payments over three-year period which is 6

pmt is the amount of semiannual dividend payment

pv is the current stock price

=fv(7%,6,1.1,-22)=$25.15  

6 0
3 years ago
A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout th
Sav [38]

Answer:

Equivalent units of production= 68,000 units

Explanation:

Giving the following information:

Units started and completed= 80,000 - 20,000= 60,000

Units in ending inventory= 20,000 nits that were 40% complete in the ending work in process inventory at the end of January.

<u>To calculate the equivalent units for conversion costs, we need to use the following formula:</u>

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 60,000 + (20,000*0.4)

Equivalent units of production= 68,000 units

5 0
3 years ago
Other questions:
  • A two-year Treasury security currently earns 5.25 percent. Over the next two years, the real interest rate is expected to be 3.0
    10·1 answer
  • Suppose that sony decides to decrease the price of the blu-ray player, for which there are many blu-ray videos available. based
    11·2 answers
  • Both the employee and the employer contribute to the F.I.C.A. fund and to the Medicare program. True or False
    15·1 answer
  • Blossom Co. records purchases at net amounts and uses periodic inventories. Prepare entries for the following: (Credit account t
    15·1 answer
  • Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing o
    11·1 answer
  • Stream outflow is important to coastal landscapes because streams provide ________ to the coastal environment.
    6·1 answer
  • Which of the following is a disadvantage to Linux?
    15·1 answer
  • Item
    14·1 answer
  • Because ems personnel are often exposed to both acute and chronic stressors, ________ management may be helpful to cope with on-
    14·1 answer
  • On a financial television show, paz hears the announcer say that the country is currently experiencing a high inflation rate. ho
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!