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sesenic [268]
3 years ago
11

Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 35%. Stock B has an expected return of 17%

and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 20% in Stock A and 80% in Stock B
Business
1 answer:
agasfer [191]3 years ago
6 0

Answer: 16%

Explanation:

Expected return of a portfolio is the weighted average of the returns of the individual stocks given the proportion of the portfolio invested in them:

= (Return on stock A * Percentage invested in stock A) + ( Return on Stock B * Percentage invested in Stock B)

= (12% * 20%) + (17% * 80%)

= 2.4% + 13.6%

= 16%

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Answer:

the required reserves will increase by 1,200 dollars

Explanation:

the required reserve ratio is 20%

for each dollar the bank receive in deposit it can loan up to 80% and must keep 20%

the multiplier will be: 1 / 0.2 = 5

each dollar of deposit will increase the money supply by 5

and each dollar withdraw will decrease money supply by 5

Therefore, for this deposit of 6,000 dollars the bank will kept:

$6,000 x 20% = $1,200

7 0
3 years ago
Is the following example a social group or a task group?
marissa [1.9K]

Answer:

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Explanation:

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Some companies use automated payment processing technology in which paper checks that may arrive at a lockbox are converted into
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3 years ago
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myrzilka [38]

Answer:

i pretty sure its c but if it wrong just let me know

Explanation:

it pretty much makes sence

can i get brainlest

6 0
3 years ago
Management wants to build a culture where employees keep security in mind. Employees should be able to access information freely
Pavel [41]

Answer: Posters promoting good security behavior and designated mailing list.

Explanation:

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