1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaK [193]
3 years ago
9

) Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 10% and a standard

deviation of 16%. B has an expected rate of return of 8% and a standard deviation of 12%. The risk-free portfolio that can be formed with the two securities will earn a(n) ________ rate of return. A) 8.9% B) 9.9% C) 8.5% D) 9.0%
Business
1 answer:
Karolina [17]3 years ago
8 0

Answer:

D) 9.0%

Explanation:

Calculation to determine what The risk-free portfolio that can be formed with the two securities will earn

Using this formula

Return of the portfolio =Weight of stock A * Return of Stock A + Weight of Stock B * Return of Stock B

Let plug in the formula

Return of the portfolio=( 0.5 * 0.1)+ (0.5 * 0.08)

Return of the portfolio= 0.05 + 0.04

Return of the portfolio= 0.09*100

Return of the portfolio= 9%

Therefore The risk-free portfolio that can be formed with the two securities will earn a(n) 9.0% rate of return.

You might be interested in
A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month.
Ierofanga [76]

Answer:

the number of containers that should be used is 1.67 containers

Explanation:

The computation of the number of containers that should be used is as follows;

= Annual demand × time × (1 + inefficiency factor) ÷ holding pieces

= 71 × 0.83 × (1 + 0.16) ÷ 41

= 1.67 containers

Here The time is converted from minutes to hour i.e

= 50 minutes ÷ 60 minutes

= 0.83

Hence, the number of containers that should be used is 1.67 containers

6 0
3 years ago
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment, installed on each e
nadezda [96]

Answer:

Multifactor productivity measure under the new system = 0.91 carts

Explanation:

This can be caculated as follows:

New average carts produced per hour = Old average carts produced per hour * (100% + Percentage increase in the old average carts produced per hour) = 80 * (100% + 25%) = 100

New number of workers = Old number of workers - Number of workers that can be transferred to another department = 4 - 2 = 2

Workers’ wages per hour = $10, or 10

New machine cost per hour for three machines = (Old machine cost per hour per machine * (100% + Percentage increase in the old machine cost per hour per manchine)) * Number of machines = ($20 * (100% + 50%)) * 3 = $90, or 90

Therefore, we have:

Multifactor productivity measure under the new system = New average carts produced per hour / ((New number of workers * Workers’ wages per hour) + New machine cost per hour for three machines) = 100 / ((2 * 10) + 90) = 0.91 carts

3 0
3 years ago
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small
Tju [1.3M]

Answer: Safety

Explanation:

 According to the given question, Gina is using the safety investment factor as it is one of the important factor in the investment program after her husband death and she is using the safety investment process for the purpose of securing her and the children's future.  

 The safety is basically stand for the simple agreement for the future equities and the secondary purpose of the investment program is to earn some interest money. The investment program is one of the type of monetary assets which is basically provide some profit in the future for example the mutual funds.

 In the same way, the life insurance is one of the program in which the person makes the payment on some regular basis to the insurance company and after the persons; death the company give money to their family.  

 Therefore, Safety is the correct answer.

4 0
4 years ago
The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the foll
Ymorist [56]
A. production era because there is limit
6 0
4 years ago
The World Bank is an example of a(n) ____, supported by industrialized nations, including the United States.
galben [10]
Multionational development bank
7 0
4 years ago
Read 2 more answers
Other questions:
  • The FDIC ruled that a company had violated the FTC Act. What penalty can the company expect?
    7·1 answer
  • Heidi, the founder of Camp Bow Wow, proves herself to be a leader as she asks her employees for suggestions and inputs before ma
    14·1 answer
  • Given some amount to be received several years in the future, if the interest rate increases, the present value of the future am
    13·1 answer
  • Given the following information, calculate the total amount of annual operating expenses for this income-producing property. Law
    9·1 answer
  • Suppose you buy clothes at Mimi's Clothing Shop. Your spending is Mimi's _____.
    5·1 answer
  • Hammoudi Company uses the weighted-average method in its process costing system. The first processing department, the Welding De
    15·1 answer
  • Aisha is an employee at Bento Food Mart. Aisha is called for jury duty and as a result cannot work her scheduled shift. Bento fi
    8·1 answer
  • 19. During March, Perpetual Envy Inc. provides $46,000 in consulting services for a customer. The customer paid $24,000; the oth
    8·1 answer
  • Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the
    11·1 answer
  • Organization Culture Profile (OCP) is a framework that provides an insight into different organization types. Which of the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!