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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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san4es73 [151]

Answer:

c. the GDP deflator and the consumer price index.

Explanation:

Two alternative measures of the overall level of prices are the GDP deflator and the consumer price index.

The GDP deflator can be defined as a measure of the changes in prices for all of the finished goods and services produced domestically in an economy in a particular period of time, usually a year. This simply means that, the gross domestic product deflator measures the inflation in an economy.

Consumer price index (CPI) can be defined as a measure of the aggregate or average changes in price level of a weighted market basket of finished goods and services that consumers purchased over a specific period of time. The CPI is also a measure of the inflation in an economy over a specific period of time.

5 0
3 years ago
The current price of a turkey sandwich is $6. If kyle is currently buying five turkey sandwiches a week, he:_______
Vsevolod [243]

The utility is not maximized since the  marginal utility gained from the fifth sandwich is greater.

In economics, utility refers to the entire satisfaction or benefit gained from consuming an item or service. Consumer utility maximization is commonly assumed in the economic theories based on the rational choice.

In economics, the marginal utility is the additional satisfaction (utility) that a buyer receives by purchasing an additional unit of the product or  the service. It computes utility once the first product is consumed (the marginal amount).

Therefore, the utility is not maximized , from the fifth sandwich onwards the marginal utility is more.

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4 0
2 years ago
A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?
Rasek [7]

Explanation:

A market ____ analyst studies prevailing market trends and forecasts potential sales for a product.?

6 0
3 years ago
Beck Corp. issued 200,000 shares of common stock when it began operations in Year 1 and issued an additional 100,000 shares in Y
Verizon [17]

Answer:

225,000 shares of Beck’s common stock were outstanding

Explanation:

The computation of the outstanding common stock shares is given below:

= Issue of shares + Additional shares - Treasury stock

= 200,000 shares + 100,000 shares - 75,000 shares

= 225,000 shares

The treasury stock decreases the balance of common stock shares so we deduct it. The convertible preferred stock is not a part of outstanding common stock shares so it is not considered in the computation part.

7 0
3 years ago
Which of the following is the term used to describe the excess of cash flows from operations over the amount of cash outflows us
horsena [70]

Answer:

C) Free cash flow

Explanation:

A free cash flow (FCF) is how much cash a company has left after paying all the expenses related to its operations and capital expenditures excluding depreciation.

FCFs are used to determine a company's value and to determine how profitable or not a new or existing project might be. The discounted FCF method is the most commonly used method to value a company.

6 0
3 years ago
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