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quester [9]
2 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]2 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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Answer:

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Answer:

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Explanation:

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Production tends to involve high volumes and low variety process but provides manufacturers relatively high facility utilization. Examples of product-focused processes are the production of light bulbs or bolts.

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3 years ago
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Triss [41]

Answer: Degree of Operating Leverage

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Z Tech = 3

Explanation:

As defined in question itself,

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Although the fixed cost differ by $1 million.

A Tech Degree of operating Leverage = 1 + \frac{7,000,000}{4,000,000} = 2.75

Z Tech Degree of Operating Leverage = 1 + \frac{8,000,000}{4,000,000} = 3

This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.

5 0
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If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, d
vekshin1

Answer:

planning stage of marketing cycle                              

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The planning stage is that when the operation proposals are recorded, the project deliver-ability and specifications are determined, and the timetable for the program is set. It means creating a set of policies to help direct your team through the stages of project application and completion.

To put it another way, project preparation applies to all you do to set up your project for success. It's the phase you're going through to determine the steps needed to establish your project priorities, describe the scope of what needs to be done and build the task list to do that.

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3 years ago
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Dovator [93]

Answer:

The correct word for the blank space is: corporate culture.

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Corporate culture represents the values, norms, and objectives a company has and that have been obtained and changed during its years of operations. The corporate culture is complemented by its ethical culture that rules the employees' individual behavior in the work frame and as a result of the interaction among other workers.

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