Match the following items.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and co

babunello [35]

Based on the probability distributions of the funds and the correlation, the following is true:

Investment proportions would be 33% Equity and 67% debt.
Standard deviation would be 21.16%.

<h3>What would be the Investment proportions?</h3>

The expected return can be found as:

= (Return on stock x Weight of stock) + (Return on debt x Weight of debt)

As we already have the return as 12%, we can solve the formula for weights :

12% = (16% x Weight of equity ) + (10% x Weight of debt)

12% = (16% x W of equity ) + (10% x (1 - W of equity))

12% = 0.16W + 10% - 0.1W

2% = 0.06W

W = 2% / 0.06

= 33%

Equity is 33% so Debt is 67%.

<h3>What would be the standard deviation?</h3>

= √(Weight of stock ² x Standard deviation of stock ² + Weight of debt ² x Standard deviation of debt² + 2 x standard deviation of stock x standard deviation of debt x Correlation x weight of stock x weight of debt )

= √(33%² x 34% ² + 67%² x 25%² + 2 x 34% x 25% x 0.11 x 0.33 x 0.67)

= 21.16%

Find out more on portfolio standard deviation at brainly.com/question/20722208.

8 0

2 years ago

In Los Angeles County, the median price rose 0.5% to $618,000 in June and sales fell 12.1%.

svet-max [94.6K]

Answer:

Part 1 : -7.6

Part 2: 15.2%

Part 3: Orange County

Explanation:

Part 1. Price Elasticity:

The formula for Price Elasticity is:

Price Elasticity = Percentage Change in Quantity Demanded divided by the percentage change in price.

So,

We need percentage change in price and percentage change in quantity demanded in order to solve for price elasticity of demand in San Bernardino County.

So,

As we know that,

In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.

Hence,

The Percentage Change in Price = 1.5

The Percentage Change in Quantity Demanded = -11.4

Just Plugging in these values in the Price Elasticity formula, we get:

Price Elasticity of Demand = -11.4 / 1.5

Price Elasticity of Demand = -7.6

Part 2: Condition Given: If Price increased by 2%

So,

In this we are asked to find the percentage change in quantity demanded.

Therefore, we will use the same formula of Plasticity of demand.

Price Elasticity of Demand = Percentage Change in Quantity Demanded divided by the percentage change in price.

Making Percentage Change in Quantity Demanded as subject:

Percentage Change in Quantity Demanded = Price Elasticity multiplied by the percentage change in price.

Here,

Percentage Change in price = 2%

Price Elasticity of Demand = -7.6

Just plugging in these values in to the formula:

Percentage Change in Quantity Demanded = -7.6 x 2

Percentage Change in Quantity Demanded = -15.2

Therefore, Holding the price elasticity of demand constant, sales in San Bernardino County would fall by _15.2_% if prices increased by 2%.

Part 3:

To solve this part, first we need to understand the law of demands:

Law of demands says that the relationship of change in price and change in quantity demanded is inversely proportional keeping all other factors constant. So, if price goes high, quantity demanded will go down and vice versa.

And here,

In _Orange__ County, the law of demand appears to be violated.

5 0

3 years ago

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what

Nat2105 [25]

The correct option is D.

Subtract the loss from net income.

The volume of money a business brings in and expends is known as cash flow. Revenues from sales are used by businesses to pay expenses.

In accounting, the initial net cash flow that is recorded during all firm operational operations is calculated using the indirect technique of estimating or computing cash flow.
Under the indirect technique of completing the cash flow from operating activities, any initial net income or net loss is recorded at the beginning.
The initial level of net income includes all non-cash expenditures and expenses such as amortization and depreciation of tangible personal property and equipment.

The cash flow of operating activities is now calculated by deducting any profits or losses from the sale of long-term assets from net income.

To know more about Cash flow visit:

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#SPJ4

I understand that the question you are looking for is:

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment? Multiple Choice

A. Add the loss to net income.

B. Disregard the loss because it relates to a financing activity.

C. Disregard the loss because it relates to an investing activity.

D. Subtract the loss from net income.

4 0

1 year ago

You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide

kondor19780726 [428]

Answer:

the correct answer is

D. Organizational impact analysis

good luck

8 0

3 years ago

The consumer price index measures the cost of the _____ of a family of ____ living in a typical U.S. city. consumption; two prod

beks73 [17]

The consumer price index measures the cost of the consumption of a family of living in a typical U.S.

<h3>What is the consumer price index?</h3>

This term is a measure of the average of the weighted measurement of consumption that a family uses. It measures the average of the prices that are spent in consumption.

What is measured basically using this is the cost of goods and services consumed by the family.

Read more on consumption here: brainly.com/question/24741444

4 0

3 years ago