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kifflom [539]
3 years ago
8

You invest 60% of your financial assets in Standard & Poor’s Depository Receipts with an expected return of 10% and a standa

rd deviation of 20% and 40% of your financial assets in MSCI EAFE Index Fund with an expected return of 12% and a standard deviation of 30%. The correlation between the two investments is 35%. What are the expected return and the standard deviation of your portfolio?
Business
1 answer:
vova2212 [387]3 years ago
7 0

Answer:

Expected Return = 10.80%

Standard Deviation = 19.72%

Explanation:

Amount invested in Standard & Poor’s Depository Receipts = 60%

Expected return of Standard & Poor’s Depository Receipts = 10%

standard deviation of Standard & Poor’s Depository Receipts = 20%

Amount invested in MSCI EAFE Index Fund = 40%

Expected return of MSCI EAFE Index Fund = 12%

Standard deviation of MSCI EAFE Index Fund = 30%

Correlation between the two investments = 35%

Now,

Expected Return = ∑(Amount invested × Expected rate of return)

= 0.60 × 0.10 + 0.40 × 0.12

or

= 10.80%

Standard Deviation = √(∑(Amount invested × Standard deviation))²

= √[(0.60)²(0.20)² + (0.40)²(0.30)² + 2(0.60)(0.40)(0.20)(030)(0.35)]

or

Standard Deviation = 19.72%

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Concord Company uses the FIFO method to compute equivalent units. It has 4000 units in beginning work in process, 20% complete a
Andrej [43]

Answer:

67,840 units

Explanation:

The computation of the equivalent units for material by using the FIFO method is shown below:

<u>Particulars       Unit       Percentage completion   Equivalent units</u>

Opening

inventory       4,000 units     50%                          2,000 units

Completed

& transferred

(67,000

- 5,800)        61,200 units    100%                         61,200 units

Closing  

inventory      5,800 units      80%                         4,640 units

Total                                                                       67,840 units

8 0
4 years ago
Which of the following is required to be present in an Employment Verification Letter?
Furkat [3]

Answer:

name, title, salary, and dates of employment. 

Explanation:

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5 0
3 years ago
What is the best way to help students use materials successfully in learning centers?
astraxan [27]

The best way to help students demonstrate ways to use materials is when introducing them.

<h3>How can learning centers effectively support students in making effective use of the resources there?</h3>

Create, share, and put procedures into action. The complicated choreography of different students, spaces, and materials that centers entail. Teachers are responsible for developing thorough procedures, explaining them to pupils, and giving them enough time to practice them until they become second nature.

The group with purpose: Centers give students the option to work independently, in groups of their choosing based on interests, or in mixed- or leveled-ability groups. All grouping choices must be deliberate and based on the character and goal of each activity.

Give students meaningful tasks: Centers activities in all subject areas should be engaging, difficult, and, whenever possible, give students a chance to practice skills in real-world contexts. This means that activities should assist students in making connections between their classroom learning and real-world situations or in forming practical habits of mind.

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3 0
2 years ago
This is section 3.7 problem 60: a clothing manufacturer has the cost function c(x)=1200+30x+0.5x2 , (in dollars), 0≤ x≤ 250 , wh
viktelen [127]

Answer:

90 suits per week must be produced and sold to achieve the maximum profit of $2,850.

Explanation:

The profit function is given by the revenue function minus the cost function:

P(x) = R(x) - C(x)\\P(x)=120x -1200-30x-0.5x^2

The number of suits, x, for which the derivate of the profit funtion is zero, is the production volume that maximizes profit:

P'(x)=0=120-30-x\\x=90\ suits

The profit generated by producing 90 suits is:

P(90)=120*90 -1200-30*90-0.5*90^2\\P(90) = \$2,850

Therefore, 90 suits per week must be produced and sold to achieve the maximum profit of $2,850.

5 0
3 years ago
Areas that once had vast economic growth and large amounts of industry, but are now suffering from the effects of outsourcing ar
Irina-Kira [14]

Answer:

de-industrialization

Explanation:

Deindustrialization refers to the  phase of social and economic event caused by the elimination or decrease of industrial base or operation in a region or country, in particular of manufacturing industries or mining. It's the reverse of being industrialised.

It is the opposite of  industrialization. Deindustrialization usually happens as it is no longer profitable for a specific industrial activity. It's a phase in which industrial development is eliminated or decreased in a country or area due to a major social or economic transition.

7 0
4 years ago
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