Sqrt of 16 is 4.
sort of 36 is 6.
So, 4*6=24. Thats the answer
Answer:
The slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately 0.5
Step-by-step explanation:
given data
invested = $1000
rate of return = 16%
standard deviation = 20%
rate of return = 6%
to find out
The slope of the capital allocation line
solution
we know here rate of return equation for find slope of line that is
R1 = R2 + σ × slope of line .............1
here R is rate of return and and σ is standard deviation
put here all value in equation 1
16 = 6 + 20 × slope of line
20 × slope of line = 10
slope of line = 0.5
so
The slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately 0.5
Hello from MrBillDoesMath!
Answer:
Not so simple. See discussion below
Discussion:
Consider these two examples:
0<= f < = 1, then (2/3) * f < (2/3) * 1 = 2/3
so the product is less than either of the factors
f = -5, then (2/3)* (-5/1) = -10/3
so the product is actually larger than the factor -5 !
In other words, the general answer depends upon the sign as well as value of the fraction. The problem probably meant that multiplying a positive fraction by a number less than 1 and >= 0 makes the product smaller. But as your see from the above examples, a more fine grained analysis is required for a full answer.
Thank you,
MrB
Ratio 8:2 doubles would be 16:4
hope this helps
Not sure how simplified you need it...
8ab-3b+8
