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IgorC [24]
3 years ago
10

Consider a portfolio consisting of only Duke Energy and Microsoft. The percentage of your investment (portfolio weight) that you

would place in Duke Energy stock to achieve a risk-free investment would be closest to:(1) 15%
(2) 4%

(3) 23%

(4) 10%
Business
1 answer:
Leokris [45]3 years ago
3 0

Answer:

(2) 4%

Explanation:

The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;

Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2

Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%

Solving for this we get the risk free investment at 4%.

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Control over cash disbursements is generally more effective when:
anyanavicka [17]

Answer:

The correct answer is option c) payments are made by check. Control of cash disbursement is generally more effective when payments are made by check..

hope helpful <3

5 0
2 years ago
Which of these pavement markings separates two lanes traveling in the same direction?
kiruha [24]

The pavement markings that separate two lanes traveling in the same direction is A broken white line

<h3>What is a Pavement Marking?</h3>

This refers to the mark or sign that is on the road to show a particular function for motorists and pedestrians.

Hence, we can see that in the case of two lanes that travel in the same direction, the pavement marking that is used to clearly show this is called a broken white line.

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7 0
2 years ago
(a) how are bonds rated? (b) how are these rating helpful to the investors?​
Jet001 [13]

Answer:

a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.

b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.

Explanation:

a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.

There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.

b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.

7 0
3 years ago
A salesperson receives a base salary of $1,200 per month plus a commission of 6 percent on each sale. The following sales were m
Sveta_85 [38]

Answer:

$4062

Explanation:

base salary of $1,200

+ 6% of each sale

so $1,200 + $390 + $619.20 + $42 + $70.80 + $1,740

=$4062

5 0
2 years ago
A government entered into a general government capital lease in the prior year. During the current year, a lease payment of $50,
m_a_m_a [10]

Answer:

Net increase in Capital Assets with amount of USD 38,000/-

5 0
3 years ago
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