Answer: ER(P) = ERX(WX) + ERY(WY)
16 = 13(1-WY) + 9(WY)
16 = 13 - 13WY + 9WY
16 = 13 - 4WY
4WY = 13-16
4WY = -3
WY = -3/4
WY = -0.75
WX = 1 - WY
WX = 1 - (-0.75)
WX = 1 + 0.75
WX = 1.75
The amount to be invested in stock Y = -0.75 x $106,000
= -$79,500
The Beta of the portfolio could be calculated using the formula:
BP = BX(WX) + BY(WY)
BP = 1.14(1.75) + 0.84(-0.75)
BP = 1.995 - 0.63
BP = 1.365
Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500
The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.
The economics concepts of income effect and substitution effect express changes in the market and how these changes impact consumption patterns for consumer goods and services. The income effect expresses the impact of increased purchasing power on consumption, while the substitution effect describes how consumption is impacted by changing relative prices. Different goods and services experience these changes in different ways. Some products, called inferior goods, generally decrease in consumption whenever incomes increase. Consumer spending and consumption of normal goods typically increases with higher purchasing power, in contrast with inferior goods.
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The fraction of fertilizer in the final mixture is 1/9.
A natural or synthetic material called fertilizer that contains chemical ingredients that help plants grow and produce more. Fertilizers may restore chemical elements that previous crops removed from the soil or increase the land's inherent fertility.
Most of the time, fertilizers' contribution to food production is overlooked. For plants, fertilizers are food. The nutrients that crops remove from the soil and replace with fertilizers. Crop yields and agricultural output would be much lower without the addition of fertilizers.
12 oz fertilizer to 96 oz water will make 12+96 = 108 oz of liquid
=12/108
=1/9
1/9 is the fraction of fertilizer in the final mixture.
To know more about fertilizer refer to: brainly.com/question/14012927
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Answer:
Explanation:
This is an annuity question. Use present value of annuity formula to solve this;
You can use a financial calculator to solve it. I'm using "Texas instrument BA II plus" calculator
<em>(Note: if using the same calculator as above ,enter the numbers first, then each respective function )</em>
N ; duration on investment = 20
I/Y; interest rate per year = 12%
PV; Present value = -2,000,000
FV; Future value = 0 (in annuities, use 0 if not given)
then CPT PMT = 267,757.56
Therefore, Stephanie will be able to withdraw $267,757.56
Based on the principle of economics, the correct answer goes thus:
Economists distinguish among the immediate market period, the short run, and the long run by noting that:
- Elasticity of supply will increase when the number of producers selling a product decreases.
<h3>Immediate market run</h3>
Economists distinguish among the immediate market period, the short run, and the long run by noting that there will be increase in elasticity of supply.
In conclusion, we can conclude that the correct answer is the increase in elasticity of supply.
Learn more about elasticity of supply here: brainly.com/question/4467460
