3 years ago

Write an equation in slope-intercept form of the line that passes through the points.

Mathematics

1 answer:

Artyom0805 [142]3 years ago

5 0

Answer: y = x + 4

Step-by-step explanation: use the slope intercept form y = mx+b

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Maria has a portfolio consisting of 7 shares of stock A (purchased for $70 per share) and 4 shares of stock B (purchased for $10

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Answer:

Hence, the expected rate of return after 1 year for Mary's portfolio is $0.17751$

Step-by-step explanation:

We have,

Purchase 7 shares of stock A for $70 per share and 4 shares of stock B for $100 per share then The expected rate of return after 1 year for Mary's portfolio.

Weight invested in stock A is $W_x=\frac{7\times 70}{7\times 70+4\times 100}$

$\Rightarrow W_x=\frac{490}{490+400}\\\Rightarrow W_x=\frac{490}{890}\\\Rightarrow W_x=\frac{49}{89}\\\Rightarrow W_x=0.5505$

Weight invested in stock B is $W_y=\frac{4\times 100}{7\times 70+4\times 100}$

$\Rightarrow W_y=\frac{400}{490+400} \\\Rightarrow W_y=\frac{400}{890} \\\Rightarrow W_y=\frac{40}{89} \\\Rightarrow W_y=0.4494$

The expected value of the rate of return $=W_x\times\;\text{expected rates of stock A}+W_y\times\;\text{expected rates of stock B}$

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