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quester [9]
3 years ago
15

A portfolio is composed of two securities, Stock X and Stock Z. Stock X has a standard deviation of returns of 35%, while Stock

Z has a standard deviation of returns of 15%. The correlation coefficient between the returns on X and Z is .25. If Stock X comprises 40% of the portfolio, while Stock Z comprises 60% of the portfolio, what is the standard deviation of this two-risky-asset portfolio
Business
1 answer:
emmainna [20.7K]3 years ago
8 0

Answer:

Portfolio SD = 0.18439 or 18.439%

Explanation:

The standard deviation of a stock or a portfolio is the measure of the total risk contained in the stock or portfolio. Risk can be defined as the volatility of the stock returns. To calculate the standard deviation of a two stock portfolio, we use the attached formula.

If the weight of stock x is 40%, the weight of stock y will be 1 - 40% = 60%

SD = √(0.4)^2 * (0.35)^2 + (0.6)^2 * (0.15)^2 + 2 * 0.4 * 0.6 * 0.25 * 0.35 * 0.15

SD = 0.18439 or 18.439%

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Which of the following is not a qualitative factor to be considered in a make-or-buy decision?
Karo-lina-s [1.5K]

Answer:

A) Possible lost jobs from buying outside

Explanation:

In a make-or-buy decision,   technical aspects directly related to manufacturing are those that come into play: costs, schedules, quality, among others. A classic example is Apple. Because of the advantages in costs, quality, schedules and other aspects, Apple chooses to manufacture its products in China instead of manufacturing themselves or with a third party in the US, despite the loss of jobs that it generates.

4 0
3 years ago
A company had $7,040,000 in net income for the year. Its net sales were $15,600,000 for the same period. Calculate its profit ma
ivann1987 [24]

The measure of a product, service, or company's profitability is its profit margin. The bigger the percentage representing the profit margin, the more profitable the company is.

Profitability is gauged by profit margin. Finding the profit as a proportion of revenue is used to calculate it.

Profit margin=44.9%

Explanation to the answer:

Profit margin =Net income / sales

                    =7,050,000 / $ 15,700,000

                    =0.44904

                    =44.9%

Profit margin =44.9%

Learn more about profit margin here brainly.com/question/24161087

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5 0
2 years ago
​a(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of vari
deff fn [24]

The answer is customer value analysis. This is responsible for providing information in regards with the organization’s way of how they are able to maintain or work well with their competitions and to their customers. This is considered to be important because it provided a basis and comparison with the rivals existing in the organizations.

6 0
3 years ago
Advanced Enterprises reports year−end information from 2019 as​ follows: Sales​ (160,250 units) ​$969,000 Cost of goods sold ​(6
Ilya [14]

Answer:

Cost of goods sold = $576,900

Explanation:

The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .

Sales volume in year 2020= (100-10)% ×  sales figure for 2019

                                            = 90% × 160,250=  144,225  

Cost of goods sold per unit =  cost of goods sold in 2019/Sales units in 2019

                                              = 641,000/160250=$4

Cost of goods sold =  $4× 144,225 =  $576,900

Cost of goods sold = $576,900

3 0
3 years ago
A holiday sales flyer advertised a video game system for a significantly reduced price and
Yanka [14]

Answer: Bait and switch

Explanation:

The type of fraud here is referred to as the bait and switch fraud. This fraud occurs when customers are told about the low prices and quality of a product but aren't available when customers want to purchase such products and they're then given products that are costlier or products that are of lesser quality.

This can be seen in the question when the sales associate advertised the video game system for a reduced price which wasn't available when customers wanted to buy but were offered a game that was costlier.

7 0
3 years ago
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