Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end
1 answer:
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Answer:
13.85% and 18.9%
Explanation:
As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:
where E(r) is the expected return, is the return of the i asset and
is the investment in i asset, so applying to this particular case we have:
the calculation of standar deviation follows the same logic of the previous formula: