Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
Answer:
35
Step-by-step explanation:
2 x 35 = 70
Answer:
Given info in numersical form:
(14+42)÷(7+4)²
= 56÷11²
= 56÷(11×11)
= 56÷121
= 0.46
Answer:
The equation 7h=63 can be used to find how many hours h a person needs to work to earn $63 at $7 per hour. How many hours does a person need to work to earn $63?
Step-by-step explanation:
The equation 7h=63 can be used to find how many hours h a person needs to work to earn $63 at $7 per hour. How many hours does a person need to work to earn $63?
Answer:
3x=152
Step-by-step explanation:
You know that there are 152 animals intotal so that goes at the end. if we say that the dogs are x because we dont know how many there are, then there are 3 times more cats then there are x.