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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

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What would be the purchase price for a $5,000, 91-day T-bill paying 3% interest?
Nat2105 [25]
Well, you just need to find it using this formula :

5,000 x [100 % -  (3% x 91/365)]

= 5,000 x [ 100 % - 0.007479]

= 5,000 x 99.992521

= $ 4,962.50 >>> rounded

Hope this help
3 0
3 years ago
Read 2 more answers
22. At the end of each year for the next 18 years, you receive cash flows of $3700. The initial investment is $25,200 today. Wha
IrinaK [193]

Answer:

29.37%

Explanation:

Rate of return = Average annual income/Average initial investment

Average annual income = $3,700

Average initial investment = (I+s)/2

Average initial investment = (25,200+0)/2

Average initial investment = $12,600

Rate of return = $3,700/$12,600

Rate of return = 0.2936508

Rate of return = 29.37%

6 0
3 years ago
Andrea and Phillip have been married for two years when they walk into the local State Farm agent's office. They see a banner (w
Amanda [17]

Answer:

$343

Explanation:

Andrea and Phillip's annual premium cost can be calculated using the cost per thousand formula:

cost per thousand = annual premium / thousands of coverage

  • cost per thousand = $0.98
  • thousands of coverage = $350,000 / $1,000 = 350

$0.98 = annual premium / 350

annual premium = $0.98 x 350 = $343

5 0
3 years ago
Electronic products can be satisfying as well as frustrating for consumers. For example, a consumer may be highly satisfied with
Leni [432]

Answer: PANAS

Explanation:

PANAS is a positive and negative Affect Schedule, a self report questionnaire that has questions to evaluate the positives and negatives of a product or service. PANAS can be used to carry out customers research.

4 0
3 years ago
A factory pays its employees on Wednesdays, and on Thursdays, employee productivity seems to be a little slow. The productivity
Tju [1.3M]

Answer:

C. Fixed Interval

Explanation:

"Fixed Interval" is a type of <em>Reinforcement Schedule. </em>The "reward" in the situation above is the<em> salary given to the employees</em> during Wednesdays. As noticed, their productivity increases over the week, with the peak on Wednesday.  

The<u> "peak" of productivity</u> is the<u> exhibited behavior during pay day.</u> They try to work hard in order to receive a salary. <em>They become more inspired to work during the salary day.</em> It is followed by<em> </em><em>less productivity on Thursdays</em><em> </em>because they have already been rewarded.

Such reinforcement schedule is called the "fixed interval." This also means that their productivity will not increase if they will not be paid.

So, this explains the answer.

5 0
3 years ago
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