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
pantera1 [17]
3 years ago
8

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.01 0.23 0.2 Bust 0.68 0.21 -0.06 -0.0

6 What is the expected return of a portfolio that has invested $6,052 in Stock A, $5,060 in Stock B, and $8,047 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
Business
1 answer:
gregori [183]3 years ago
4 0

Answer:

the expected return of a portfolio that has invested is 0.0625

Explanation:

The computation of the expected return of a portfolio is shown below;

= (0.32 × (6052 × (-0.01) + 5060 × 0.23 + 8047 × 0.2) + 0.68 × (6052 × 0.21 + 5060 × (-0.06) + 8047 × (-0.06))) ÷ (6052 + 5060 + 8047)

= 0.0625041808027559

= 0.0625

Hence, the expected return of a portfolio that has invested is 0.0625

Therefore the same should be considered and relevant

You might be interested in
The primary advantage of being a limited partner is:
notka56 [123]
<h2>Maximum loss limited to their capital investment</h2>

Explanation:

  • As an investor there is a possibility of both profit and loss. If it is sole proprietorship, the profit or loss will be put on the his / her shoulder.
  • In case of limited partner, the advantage is that if there is a loss occurred it will" limit to their capital investment".
  • He/she enjoys "protected investments"
  • There will not be any huge loss since the capital invested is limited.
  • "A company can have more than one limited partner"

7 0
3 years ago
What are some of the benefits of establishing a minimum wage?
lapo4ka [179]

it can help certain families

it serves as an employment incentive

it is a common reference with hiring in other jobs

it can also be helpful depending on the type of market

7 0
3 years ago
Read 2 more answers
The __ approach takes into account both the magnitude and timing of cash flows over the entire life of a project in measuring it
Nikolay [14]

Answer: d. internal rate of return

Explanation:

The Internal Rate of Return can be a very useful method for measuring the viability of a product because it takes into account the magnitude and timing of cashflows when it discounts it to the current period to find out if it will lead to a higher NPV than zero.

The other methods have their limitation. The payback period does not take into account the entire lifetime but rather stops as soon as the project pays back and the other two do not take into account the timing of the cashflows.

4 0
2 years ago
A(n) __________________ is a term used to indicate any unwanted event that takes places outside the normal daily security operat
ikadub [295]

Answer:

b.security event.

Explanation:

A security event is an deviation or change in the daily operations of information technology service that gives a warning that security policies have been violated or a safeguard has failed.

Significance of a security event is measured by effect on hardware, software, data, or security of systems.

For example if a user contracts a computer virus it is a security event, because this means a security breach occured. Antivirus products are security software that reduces occurrence of security event.

4 0
2 years ago
Read 2 more answers
What are the process of a business transaction
sdas [7]

Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services. Business transactions can be as simple as a cash purchase or as complex as a long-term service contract .

Explanation:

5 0
2 years ago
Other questions:
  • The mean cost of a meal for two in a mid-range restaurant in Tokyo is $40 (Numbeo website, December 14, 2014). How do prices for
    12·1 answer
  • Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also assume that in 1984 each buck
    6·1 answer
  • choose a real or made-up example of a company, and describe at least three variable costs the company has. (1-3 sentences.
    10·1 answer
  • Midori Company had ending inventory at end-of-year prices of $138,500 at December 31, 2013; $165,771 at December 31, 2014; and $
    14·1 answer
  • Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, ne
    12·1 answer
  • A sporting equipment store expects to purchase $7,800 of ski boots in October. The store had $3,800 of ski boots in merchandise
    5·1 answer
  • In a pull manufacturing system, ______. Group of answer choices Production is based on government regulations Production is base
    10·1 answer
  • Katrine doesn't understand all of the various aspects of automobile insurance and relies on her local independent State Farm Ins
    9·1 answer
  • The fifth step of the financial planning process is to create and implement the financial action plan. What is involved in this
    13·1 answer
  • Bridges, shopping centers, and other jobs that take months or years to complete and involve the work of many are called ______.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!