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:
3,333...
Step-by-step explanation: U can do a rule of three
4 ---- 1
x ---- 5/6
4 x 5/6 = 20/6
20/6 = 3,33...
Answer:
A. 9 miles
Step-by-step explanation:
if you flip one of the sides to be to be diagonal then it is the same length as the road.
This is the graph for y=-2(times)5^x
Hope this helps!
The answer is 65880000 and here are the steps