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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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Emerald corporation's current ratio is 0.5, while ruby (emerald's competitor) company's current ratio is 1.5. Both firms want to
ruslelena [56]

Answer:

b. Only Emerald Corporation's current ratio will be increased.

Explanation:

Given that

Emerald current ratio is

= 0.5 i.e. = 0.5 ÷ 1

now in case when the current liability is doubles , so the current assets is

= 0.5 + 1 = 1.5

And, the cuurrent liabilities is

= 1 + 1

= 2

so new ratio is

= 1.5 ÷ 2

= 0.75

Now  

Ruby current ratio is

= 1.5

i.e. = 1.5 ÷ 1

Now in case when the current liability is doubled,

the current assets is

= 1.5 + 1

= 2.5

And, current liabilities is

= 1 + 1

= 2

Now new ratio is

= 2.5 ÷ 2

= 1.25

Therefore the emerald current ratio is rised from 0.5 to 0.75

And, the Ruby's ratio has decline from 1.5 to 1.25

7 0
3 years ago
Which of the following organisations is most likely to sell shares for sale to invited investors?
Vsevolod [243]

Answer:

C. Private limited company

Explanation:

Ownership in a private limited company is restricted, unlike in a public limited company. The shareholders of a private limited company are usually family members, close friends, or people with a shared interest.

A private limited company can raise capital by selling additional shares. Because becoming a shareholder in a private limited company is restricted, private companies raise capital by selling shares to existing shareholders or to invited investors.

5 0
3 years ago
Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift a. demand,
Sedbober [7]

Answer:

b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.

Explanation:

In the case when the government impose the tax of 20% on sweetened beverages so here the price should be increased but at the same time the quantity is decreased as the supply curve shifted to the leftward where the demand curve is not impacted at all due to this things the price increased and the demand is decreased

Therefore the option b is correct

4 0
2 years ago
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking
IrinaVladis [17]

Answer:

(B) 40%

Explanation:

↓Q / ΔPrice = Price-elasicity

The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.

ΔPrice  = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1

We know that price elasticity is 0.4

Now we can solve for the change in the quantity demanded:

↓Q/ 1 = 0.4

↓Q = 0.4 x 1 = 0.40 = 40%

7 0
3 years ago
Which of the following does not influence parent-child relationship​
NISA [10]

Answer:

Monetary Contribution

Explanation:

Parent-child relationship refers to the way the parents nurture the social, physiological, and psychological development of the children.

Monetary contribution implied that in order for parents to give love and care to the children, the children need to provide the parents with a certain amount of money in return.

The type of care and attention that parents give to their children tend to be voluntary. It's purely based on unconditional love and affection. This is why we don't consider monetary contribution as a factor that influence parent-child relationship​.

6 0
2 years ago
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