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babunello [35]
2 years ago
12

Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and

a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.
Business
1 answer:
Serjik [45]2 years ago
6 0

Answer:

The answer is "10\%".

Explanation:

You are equivalent investors in 16 percent of a portfolio and 4 percent of a risk-free asset. A weighted mean of these two will become the predicted return.

= \text{(Portfolio weight} \times \text{Return portfolio)} + \text{(Portfolio weight}\times \text{risk-free)}\\\\

= (0.5 \times 16\%) + (0.5 \times 4\%)\\\\= (0.5 \times \frac{16}{100}) + (0.5 \times \frac{4}{100})\\\\= \frac{8}{100} +  \frac{2}{100}\\\\= \frac{8+2}{100}\\\\= \frac{10}{100}\\\\= \frac{1}{10}\\\\= \frac{1}{10} \times 100\\\\=10\%

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"The market price average is decreasing daily; however, the level of declines relative to advances is falling. The market is rea
m_a_m_a [10]

Answer:

This question is incomplete, the options are missing. The options are the following:

A) Overbought condition.

B) Oversold condition.

C) Breakout on the upside.

D) Breakout on the downside.

And the correct answer is the option B: Oversold condition.

Explanation:

To begin with, the name of <em>"Oversold Condition"</em> refers to the situation where the price of an asset has reach a certain level that is relative low in comparison with the prices that it has have before. That situation can last for a long period of time so the most prudent way to act in the eyes of a trader is to wait until the price base out and start increasing.

So that situation in where the market price average is decreasing and reaching to its bottom is called Oversold Condition.

4 0
2 years ago
When using ABC, costs can be gathered at different levels. These levels are all of the following except:_________.
Aleksandr [31]

Answer:

B. Journal entry-level

Explanation:

When using ABC, costs can be gathered at different levels. These levels are all of the following except "journal entry-level".

Therefore, costs can be gathered in Unit-level, Batch-level, Factory-level and even Product level.

Activity-Based Costing (ABC) is actually a costing method which tends to identify the activities that are carried out in organization and gives the costs of each activity to the products and services by what they actually consume.

3 0
2 years ago
Milar Corporation makes a product with the following standard costs: The company applies variable overhead on the basis of direc
dedylja [7]

Answer:

-$3,547 unfavorable

Explanation:

For the computation of labor rate variance for January first we need to find out the standard direct labor cost which is shown below:-

Standard Direct labor cost = Produced units × Standard quantity of direct labor × Standard price of direct labor

= 3,440 × 0.8 × $33

= $90,816

Labor rate Variance = Standard direct labor cost - Actual labor cost

= $90,816 - $94,363

= -$3,547 unfavorable

Therefore for computing the labor rate variance we simply applied the above formula.

7 0
2 years ago
A(n) __________ refers to an organization that seeks to influence government and public policy through activities such as lobbyi
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An interest group refers to an organization that seeks to influence government and public policy through activities such as lobbying and donating to campaigns.

Given that organisation seeks to influence government and public policy through activities such as lobbying and donating to campaigns.

We are required to give the name of that organisation that seeks to influence government and public policy through activities such as lobbying and donating to campaigns.

The term which will fit in the meaning given in the question is interest group.

An interest group or an advocacy group is basically a body which uses various forms of advocacy in order to influence public opinion and/or policy. They may influence even the decision of the government regarding public policy by donating huge amount.

Hence an interest group refers to an organization that seeks to influence government and public policy through activities such as lobbying and donating to campaigns.

Learn more about interest group at brainly.com/question/25656843

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4 0
1 year ago
to take advantage of the possible value that global subsidiaries can bring, companies must be open to receive resources from out
tekilochka [14]

TRUE To take advantage of the possible value that global subsidiaries can bring, companies must be open to receive resources.

In order to meet the financial requirements of the leading corporations in the world, The Global Subsidiaries Group (GSG) is a market-leading provider of financial services to prestigious multi-national clients all over the world.

The Global Subsidiaries Group, which has clients in more than 100 nations, is primarily organised along industry lines. Based on a local presence that dates back more than a century in many of these markets, this organisational model makes use of a profound understanding of industry trends and market knowledge.

Learn more about global subsidiaries here:

brainly.com/question/14561695

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8 0
8 months ago
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