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Gnoma [55]
3 years ago
11

A bank is thinking about building a new branch. They think this new branch will generate 20 percent of the business of the bank

after it is opened. The bank expects the return for this branch will be 15 percent with a standard deviation of 5 percent. Currently the bank has a 12 percent rate of return with a standard deviation of 4 percent. The correlation between the branch and the bank is expected to be .25. What is this bank's expected standard deviation after adding this branch
Business
1 answer:
ivanzaharov [21]3 years ago
3 0

Answer: 12.6%

Explanation:

The bank's expected standard deviation after adding this branch will be calculated thus:

= (Total invested in new branch × Expected rate of return) + (1 - Investment in new branch) × Other assets

= (0.2 × 0.15) + (1 - 0.2) × 0.12

= 0.03 + 0.8 × 0.12

= 0.03 + 0.096

= 0.126

= 12.6%

Therefore, the bank's expected standard deviation after adding this branch is 12.6%.

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Studentka2010 [4]
Answer in the file below .

3 0
3 years ago
Screening Model. Assume that the following criteria relevant to the process of screening various project opportunities are weigh
goldfiish [28.3K]

Answer:

Project Alpha 81

Project Beta 81

Project Gamma 83

Project Delta 81

Among the four projects the most likely candidates to be implemented will

be Project Gamma .

Explanation:

Screening Model

1.Calculation for Project Alpha

Important Weight×Weight Score = Weighted Score

Quality 5 × 1 =5

Cost 3 ×7 =21

Speed 7 ×5 =35

Visibility 5 ×3= 15

Reliability 1× 5 =5

Total Score =81

2.Important Weight ×Weight Score = Weighted Score

Calculation for Project Beta

Quality 5 × 3 =15

Cost 3 ×7 =21

Speed 7× 5 =35

Visibility 5×1 =5

Reliability 1 ×5 =5

Total Score =81

3.Important Weight ×Weight Score = Weighted Score

Calculation for Project Gamma

Quality 5 ×3 =15

Cost 3 ×5 =15

Speed 7× 3= 21

Visibility 5×5 =25

Reliability 1×7 =7

Total Score=83

4.Important Weight ×Weight Score = Weighted Score

Calculation for project Delta

Quality 5 ×5 =25

Cost 3 ×3 =9

Speed 7× 5 =35

Visibility 5×1 =5

Reliability 1 ×7 =7

Total Score =81

Therefore among the four projects the most likely candidates to be implemented will

be Project Gamma because it has the highest

score with a score of 83.

6 0
3 years ago
Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.45 Direct labor
Virty [35]

Answer:

$59,750

Explanation:

Total variable per unit = Direct material pet unit + direct labor per unit + variable manufacturing overhead + sales commission + variable administrative expenses

= $6.45 + $3.3 + $1.25 + $0.45 + $0.5

= $11.45

Total variable cost for 5,000 units

= $11.95 × 5,000

= $59,750

6 0
3 years ago
10. Leon, a minor, signed a contract with Step-Up Employment Agency, in which Leon promised to pay a fee if Step-Up secured him
Dima020 [189]

Answer: No. Step Up can't recover the fee.

Explanation:

From the information given in the question, we are told that Leon, who is a minor, signed a contract with Step-Up Employment Agency, where he promised to pay a fee on the condition that Step-Up Employment Agency gets him a job as a pianist. Leon tyem refused to pay the $500 after h was given the job.

In this scenario, for Step Up Employment Agency to get their fee, that means they must have signed a legal contract with Leon. From them to sign a legal contract, the person must be a major but we are told that Leon is a minor. Even if there was a legal contract, it will be void since Leon is a minor. Therefore, Set -Up Employment agency will not be able to recover the fee.

4 0
3 years ago
A private partnership whose shares are primarily offered to wealthy individuals and large institutions and which often makes hig
Romashka-Z-Leto [24]

Answer:

The correct answer is letter "D": A hedge fund.

Explanation:

A hedge fund is a private investment fund that almost exclusively markets itself for rich investors. Since middle and lower classes are normally unable to invest in hedge funds due to financial limitations, hedge funds have traditionally been permitted to operate under considerably lower regulatory oversight by the Securities and Exchange Commission (SEC).

4 0
3 years ago
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