Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
A duty is a type of tax.
Consider the modern day examples of "duty free" shopping available in places like airports and certain tourist locations where people can purchase luxury goods without owing a tax to any country or locality.
Poor planning or poor project management is the number one reason why projects fall behind schedule or fail. We all know how important it is to plan before acting, even more in the area of management of the different areas of the project, it is important to define the objectives of the project from day one, defining them will mean success or failure of the project and from this point to advance in the planning of all areas before starting to do any work.
Answer: <u><em>Audit</em></u>
Explanation: In this case the evaluation of financial records of the corporation(Maine Manufacturer) done by Holly lane is known an <u><em>audit.</em></u>
Audit is a methodical and autonomous process under which one examines statutory records(i.e books, accounts,documents and vouchers) of an institution and also appraise their acquiescence with laws, and provide an assessment reflecting the expound of organization's financial records.
Therefore, the correct option is (b)
Answer: Target market
Explanation:
Target market could be defined as those group who a producer deem fit to use his or her product. When a producer makes an item, he has a group of people in mind that would buy because they need it, those group of people are the target market. Every producer considered this.
The real estate agent target market are vegetarian because he's renting the houses for what it was specified to be
