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eduard
2 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]2 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%

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Which relationship might suggest a heightened risk of fraud in the acquisition and payment cycle? a. Unexpected increases in the
masha68 [24]

Answer:

The correct answer is letter "A": Unexpected increases in the number of suppliers.

Explanation:

Frauds or money cleansing usually requires the help of a network of different business interconnected to clear the illegal funds with the excuse of having made commercial activities that never took place. In most cases, accounting documents are faked so that the proceeds of the questionable funds may seem as legal as possible.

In that case, if a company counts with more suppliers and fraud is taking place in the organization, <em>they will have the excuse of making more payments so more funds can go out of the company</em>.

7 0
3 years ago
Which of the following is true about multicollinearity?
Komok [63]

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.  

  • VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5  implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
  • VIF as a multicollinearity correction : Calculating  Var (\beta j ) = σ^2 / [TSS j (1 - R^2j)] ; where TSS = total sum of square of variable j , σ^2 =  j variance, R^2 j = R^2 from regressing all other independent variable on variable j
3 0
2 years ago
What is the most common method of measuring flows of trade?
kakasveta [241]

The most common method to measure flows of trade is the comparison between the exportation of merchandise, services, and the capital of the countries.

<h3>What is trade?</h3>

Trade is the situation where the countries buy (import) from or sell (export) to the countries outside the boundaries of their own territories.

Exports referred to the scenario where one country provides goods and services to another country abroad. The comparison of goods, services, and monetary capital of foreign countries with respect to their own countries can be used as a common method to measure the trade flows.

Therefore, the exporting of goods, services, and capital to other countries is the method to determine trade flows.

Learn more about the trade from the related link:

brainly.com/question/3617318

#SPJ4

4 0
1 year ago
Using government regulations to limit the import of goods and services is called
zimovet [89]

Answer:

protectionism

Explanation:

The country could overtax import products such as manufactured products in order to protect its own products and industries. This is very common in trade markets. Nowadays, through the globalization and China´s high development protectionism is ending.

4 0
3 years ago
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Samantha is preparing a presentation about using waste to create soil compost. She plans to include a video that demonstrates co
Morgarella [4.7K]

Answer:

I'm thinking C

Explanation:

This seems really written in a smart aleck way. It could be D also though.

8 0
3 years ago
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