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Rufina [12.5K]
3 years ago
14

The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%

.
a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
b. Calculate the total variance for an increase of 2.62% in its residual standard deviation?

Business
1 answer:
denpristay [2]3 years ago
5 0

Answer:

a). 0.2664 or 26.6400%

b). 0.266406 or 26.6406%

Explanation:

calculation and full explanation is in the attached picture below

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The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in
sineoko [7]

We can actually deduce here that the unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as: D. Secondary effects.

<h3>What is unintended consequence?</h3>

Unintended consequence, as seen in social sciences are known to be the result or outcome that is gotten from a purposeful action which were not seen coming.

The options that complete the question are:

a. scarcity constraints.

b. marginal effects.

c. opportunity costs.

d. secondary effects

We can actually deduce here that such unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics are known to be secondary effects.

Learn more about unintended consequence on brainly.com/question/17228614

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8 0
1 year ago
__________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes b
photoshop1234 [79]

Answer:

<em>Risk capital</em>

Explanation:

Risk capital <em>relates to funds allocated to risky operation and used to invest heavy-risk, elevated-reward.</em>

Diversification is key to a successful risk capital investment, because the prospects of each investment appear to be undetermined in nature, although the yields may be far above average when an investment is successful.

5 0
3 years ago
) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.
weeeeeb [17]

Answer:

d

Explanation:

A change in price leads to two effects :

  • The income effect
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The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.

A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest

The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.

7 0
2 years ago
Assets Liabilities and Net Worth
KiRa [710]

Answer:

The correct answer is $30 billions.

Explanation:

The checkable deposits are given as $140 billions.

The total reserves are $51 billions.

The required reserve rate is 30%.

The required reserves will be

=30% of $140 billions

=0.3 \times 140

=$42 billions

The excess reserves will be

=total reserves-required reserves

=$51-$42

=$9 billions

Maximum expansion by lending will be

=\frac{excess reserves}{required \ reserve\ rate}

=\frac{9}{0.3}

=$30 billions

So, the money supply can be expanded by a maximum amount of $30 billions.

5 0
3 years ago
According to altman &amp; taylor, the degree of intimacy in a relationship depends on the
Aloiza [94]
The degree of intimacy in a relationship depends on the depth and breadth of the information shared together to the psychologist Altman and Taylor, they developed the Social Penetration Theory wherein it explains the differences of communication of relationships. The various aspects of person's life are referred to breadth while the depth is the details regarding these areas.
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