Answer:
a. Both the equilibrium price and quantity will go down.
Explanation:
On those days, it will be a decrease in the demand which will make the demand quantity to go down which will generate a shift in the demand curve to the left and with less people willing to buy gasoline, the equilibium quantity will drop and in order to sell, the price will drop too.
<span>A. It helps you to balance your risk across different types of investments</span>
Answer and Explanation:
The computation is shown below:
1. VaR = Expected return - z × Standard deviation
= 13% - 1.645 × 20%
= -19.90%
Therefore the option a is the correct answer.
2) Now the correlation coefficient is
Variance of the portfolio = (weight of A × Standard deviation 1)^2 + (weight of B × Standard deviation 2)^2 + (2 × weight of A × weight of B × Standard deviation 1 × Standard deviation 2 × correlation 1 and 2)
3.80% = (60% × 24%)^2 + (40% × 18%)^2 + (2 × 60% × 40% × 24% × 18% × correlation 1 and 2)
So the correlation is 0.583
Answer:
Hahahahahahahha is it that much difficult
