Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.
Explanation:
A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.
Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.
A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.
Solution :
a). Bundles 
= U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, 
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
So Alexander has 
apples and 
bananas. The indifference curve though also include bundle.
Therefore, (41.2, 2)
b). 
= 0.4
So Alexander has apples and bananas with this bundle. Alexander would like to give up 
unit apples for a banana.
Answer:
d. Work-in-Process Inventory: Department no. 2.
Explanation:
The profuct is Transferred from Department 1 to Department 2. The cost in in the work in process of Department 1 which will be trasnferred to next department.
Following Journal entries will be recorded for this event.
Dr. Cr.
Work-in-Process Inventory: Department no. 2. xxx
Work-in-Process Inventory: Department no. 1 xxx
Answer:
The correct option is D,the markets for bonds of different maturities are separate or segmented
Explanation:
Market segmentation theory is of the view that market for short-term and long-term bonds are segmented from each other,wherein investors with different preferences investing in different markets.
Banks for instance are short-term position takers due to their preference for liquidity and would favor investing short-term instruments like the 3-month Treasury bill such that at every point in time, there is enough cash liquidity to meet customers' request for withdrawal of funds.
On the flip side, pension fund administrators take a long-term position on investment, hence would prefer the 30-year Treasury bill since their payment of retirement benefits is usually a low portion of their total contributions received from contributors to their pension funds.
True, you can use a formula in Excel spreadsheet!
