1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
eduard
3 years ago
11

Stocks have a 12% expected return and 22% risk. Bonds have a 7% expected return and 10% risk. The expected return of a portfolio

comprised of 70% stocks and 30% bonds is: Group of answer choices
Business
1 answer:
inessss [21]3 years ago
7 0

Answer:

10.5%

Explanation:

Calculation to determine Expected return of portfolio

Using this formula

Expected return of portfolio = Ws*E(rs) + Wb*E(rb)

Where,

Expected return stock E(rs) = 12%

Expected return bond E(rb) = 7%

Weight of stock Ws = 0.70

Weight of bond Wb = 0.30

Let plug in the formula

Expected return of portfolio= 0.7*12 + 0.3*7

Expected return of portfolio = 10.5%

Therefore Expected return of portfolio is 10.5%

You might be interested in
Should a firm shut down if its weekly revenue is ​$1 comma 000​, its variable cost is ​$600​, and its fixed cost is ​$800​, of w
kifflom [539]

Answer: The correct answer is "C. produce because revenue of ​$1 comma 000 is greater than fixed costs.".

Explanation: The firm should produce because the revenue of 1000 is enough to cover the fixed costs and part of the variables (1000 - 800 - 600 = (-400)) so that the loss is less than if it stopped producing despite the avoidable costs (800 - 350 = 450) since if it stopped producing it would have a loss of $ 450 and producing it would have a loss of $ 400.

7 0
3 years ago
When teams have a high degree of dependence on outsiders, is the best team strategy.
Nataly_w [17]

Probing is the best team strategy.

3 0
3 years ago
Read 2 more answers
Which agency is responsible for approving states' special education plans and releasing idea funds accordingly?
tatiyna
The Office of Special Education and Rehabilitative Services is the agency responsible for approving a state's special education plan and releasing the IDEA funds accordingly.  These offices also help schools understand the services and responsibilities. These services help with those who have a learning disability or need specialized attention/help in school. 
7 0
3 years ago
Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. T
Vinvika [58]

Answer:

Mel

If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.

c. $1,220

Explanation:

a) Data and Calculations:

Mel's value of a cruise in nice weather = $2,000

Mel's value of a cruise in bad weather = $50

Probability of nice weather = 60%

Probability of bad weather = 40%

Expected value:

Weather              Outcome Probability    Expected Value

Nice weather      $2,000          60%           $1,200

Bad weather            $50           40%               $20

Total expected value of a cruise               $1,220

6 0
3 years ago
A new manager starts his work by talking with each member of his team, getting to know their strengths and weaknesses, and helps
wel

Answer: the correct answer is coaching leadership.

Explanation:

The Coaching Leadership Style is a relatively new and guiding leadership style. The leader has these skills when he is able to develop and improve the performance and competences of his employees. The basis of the Coaching Leadership Style is the dynamic interaction between the leader and the employee.

5 0
3 years ago
Other questions:
  • Which of the following statements is true regarding a cross-functional team?A) A cross-functional team is made up of employees f
    13·1 answer
  • Assume the perpetual inventory method is used. The company purchased $12,300 of merchandise on account under terms 4/10, n/30. T
    9·1 answer
  • High and unexpected inflation has a greater cost
    15·2 answers
  • On January 1, 2008. Titania, Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the c
    9·1 answer
  • A marketing company wants to determine which cola beverage is most preferred by consumers. A group of participants tastes Cola A
    6·1 answer
  • Why are designer shops able to price their clothes so very expensive and yet still get clients even though similar clothes that
    6·1 answer
  • correct,P5-23 (similar to) Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an​ a
    11·1 answer
  • Why is decsion necessary​
    10·1 answer
  • How often should a financial checkup be completed
    6·1 answer
  • Contribution margin is first used to cover expenses. Once the break-even point has been reached, contribution margin becomes:.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!