Answer:
14.656%
Step-by-step explanation:
Data provided in the question:
Rate of return, r = 4% = 0.04
Risk aversion of A = 1.85
Standard deviation, σ = 24%
Now,
we have the relation
A = (E - r) ÷ σ²
E = expected return on portfolio
r = Risk free rate
on substituting the respective values, we get
1.85 = (E - 0.04) ÷ (0.24)²
or
0.0576 × 1.85 = (E - 0.04)
or
0.10656 + 0.04 = E
or
E = 0.14656 or
E = 0.14656 × 100% = 14.656%
Answer:
25%
Step-by-step explanation:
Percentages are one of several ways of describing quantities' relationships to one another. Specifying one number as a percentage of another means specifying the fraction of the second quantity the first comprises. The percentage value is the number that, divided by 100, equals that fraction. To express the percentage as a whole number, round it accordingly. Some applications, however, don't require percentages as exact whole figures.
Divide the first number the second. For instance, if you want to find what percentage 43 is out of 57, divide 43 by 57 to get 0.754386.
8+11 is 19
Hope it helped
Q = p(r + s)
Use the distributive property
Q = pr + ps
Q = p x r + p x s
Q = p x p + r x s
Q = p^2 + rs
Subtract rs from both sides
Q - rs = p^2
Square root both sides
sqrt Q - rs = p
