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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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As of January 1 of the current year, Kane owned all the 100 issued shares of Manning Corp., a calendar
aliina [53]

Answer:

A) $56,750

Explanation:

Since Manning's ownership changed during the year, it must allocate income differently for the first 40 days than the remaining 325.

Kane should report the following income:

  • 100% income form Manning x 40/365 = $73,000 x 40/365 = $8,000
  • 75% income from Manning x 325/365 = $73,000 x 75% x 325/365 = $48,750
  • total income allocated to Kane = $8,000 + $48,750 = $56,750
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3 years ago
Q 1. how does csr (corporate social responsibility impact the role of hr manager ?
tatuchka [14]
By being friendly and decent
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3 years ago
he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements
nekit [7.7K]

Answer:

TRUE

Explanation:

Using the Gordon Growth Model,  we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)  

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Do = Dividend now

D1 = Dividend in year 1

g = growth

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So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

3 0
3 years ago
Without nonverbal cues, ____ and ____ are more important when you use an office phone
Butoxors [25]

When using an office phone or any phone for calling someone, the two most important things to make sure is the etiquette and the voice. This is because in the absence of visual actions or nonverbal clues when talking through the phone, the other person on the line might likely misinterpret what you are really trying to convey.

 

Answers:

<u>etiquette</u> and <u>voice</u>

7 0
3 years ago
Consumers are particularly price-responsive when:a. it is difficult to substitute across suppliers and prices are high. b. they
s344n2d4d5 [400]

Answer:

The correct answer is the option C: there are many substitute goods available for a product, and they have a long time horizon to adjust their consumption.

Explanation:

To begin with, the concept known as <em>''price-responsive'' </em>in the marketing field and in the business world refers to the ability by the consumers to adjust their consumption behavior regarding the prices that are being charged by the company in order to control the use of the good itself and therefore to avoid paying high prices. Moreover, it is understood that in this theory scheme the consumers are adaptative to the services price changes that the company tends to do.

8 0
3 years ago
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