Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
Answer:
<em>The area of the shaded region is 3.</em>
Step-by-step explanation:
Since point E lies halfway between AB and BC, the area of the shaded region (As) consists of two identical triangles with base equal to AB and height equal to half the measure of BC:
Where At is the area of each triangle.
We know AB=3 and BC=2, thus:
Simplifying:
Finally:
The area of the shaded region is 3.
Note the area of the shaded region is half the area of the rectangle.
Answer:
x=6
Step-by-step explanation:
(
8
)
⋅
(
3
)
=
(
x
)
⋅
(
4
)
