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anzhelika [568]
3 years ago
8

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o

f 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. ________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 9%.
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
4 0

Answer: 45%

Explanation:

Standard deviation for the portfolio will be a weighted average of the standard deviations of the individual assets.

Risky asset has standard deviation of 20%. Assume the weight is x.

Treasury bills have a standard deviation of 0 as they have no risk. Assume their weight is y.

Target Standard deviation is 9%.

Formula would be:

9% = (x * 20%) + (y * 0%)

20%x = 9%

x = 9% / 20%

x = 45%

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vfiekz [6]

Answer:

The correct answer is A. WBS dictionary.

Explanation:

The WBS (work breakdown structure) or Work Decomposition Structure (WDS) provides a common reference framework for all project elements and for the estimation and programming of specific tasks within the project. time, resources and quality within the project plans.

A good work breakdown structure encourages a systematic planning process, reduces the possibility of omitting key elements of the project, and simplifies the project through its division into manageable units. It is a tool to follow the progress of the project.

If WBS is used as the common skeleton for programming and for estimation, communication between professionals working on the project will be facilitated.

A WBS is, or should be, a uniform, consistent and logical method of dividing a project into smaller, more manageable components for planning, estimation and control.

A WBS oriented to deliverables facilitates and encourages the exchange of information. Ideally, there should be some uniformity and consistency in the WBS. In order to achieve uniformity, "all children of the same father" must be developed on the basis of the same base.

The ultimate goal is to achieve a WBS that highlights a logical organization of products, components and modules.

8 0
3 years ago
The company stops the disputed behavior but does not admit that it broke the law
Svetach [21]
The appropriate response is Consent Order. Once the request is fixed it must be changed by shared assent of the now ex and spouse or if another judge chooses it can be changed after an application is made to the court, one individual can't change the terms of the request, it must be by common assent. For most by far of individuals, assent orders are last.
6 0
3 years ago
Your goal is to withdraw $25,000 in 10 years. To get the money for this withdrawal, you will make the aforementioned five equal
NikAS [45]

Answer:

the interest rate is missing, so I looked for similar questions and found that the semiannual interest rate is 3%.

first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.

You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:

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7 0
3 years ago
Unsystematic risk: Group of answer choices can be effectively eliminated by portfolio diversification. is compensated for by the
Novay_Z [31]

Answer:

can be effectively eliminated by portfolio diversification.

Explanation:

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Therefore according to the given options, the unsystematic risk is the risk that is eliminated by diversifying the portfolio i.e investing the amount in different companies rather investing in one company

4 0
3 years ago
Southwest Airlines uses its assets very productively. Its turnaround time, or the time that its airplanes sit on the ground whil
mario62 [17]

Answer: Efficiency

Explanation:

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Efficiency reduces the waste of resources like energy, physical materials, and time albeit achieving the desired output. It is the aim of every organization to get the best results using the least cost. Southwest Airlines is efficient in its production since it uses its assets and time well.

8 0
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