1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Feliz [49]
3 years ago
8

Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10

10 % 8 % 2 0.20 13 % 7 % 3 0.20 12 % 6 % 4 0.30 14 % 9 % 5 0.20 15 % 8 % If you invest 40% of your money in A and 60% in B, what would be your portfolio's expected rate of return and standard deviation
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

<em>The expected rates of return of stocks A and B:</em>

E(RA) = 0.1*((13%) + 0.2*(12%) + 0.3*(14%) + 0.2*(15%)

E(RA) = 13.2%

E(RB) = 0.1*(8%) + 0.2*(7%) + 0.2*(6%) + 0.3*(9%) + 0.2*(8%)

E(RB) = 7.7%

<em>The standard deviation of stocks A and B are:</em>

Var(RA) = [0.1*(10%-13.2%)2^ + 0.2*(13%-13.2%)^2 + 0.2*(12%-13.2%)^2 + 0.3*(14%-13.2%)^2 + 0.2*(15%-13.2%)^2]^1/2

Var(RA) = 1.5%

Var(RB) = [0.1*(8%-7.7%)^2 + 0.2*(7%-7.7%)^2 + 0.2*(6%-7.7%)^2 + 0.3(9%-7.7%)^2 + 0.2*(8%-7.7%)^2]^1/2

Var(RB) = 1.1%

You might be interested in
Listed below are a number of statements concerning relevant versus irrelevant costs and benefits. Complete each statement by pro
lord [1]

Answer:

1. Irrelevant costs

2. Capacity

3. Opportunity costs

4. Fixed Expense

5. Going concern

6. Coalition, Intuition, Escalation of Commitment, Risk Propensity, and Ethics

7. At full capacity

8. Differential Analysis

3 0
3 years ago
How can practicing proper etiquette impact you your life
Andre45 [30]

Etiquette provides personal security. It protects the feelings of others. It makes communication clearer. It will enhance your status at work and it makes good first impressions.


4 0
3 years ago
What is the correct term that describes the withdraw of protection or support or the discontinuance of medical care without prop
Murljashka [212]

Answer: Abandonment.

Explanation:

According to the Oxford's Learner's Dictionary; abandonment is defined as "<em>the act of leaving a person, thing or place with no intention of returning" </em>or "<em>the act of giving up an idea or stopping an activity with no intention of returning to it"</em>

In medicine the term changes slightly and occurs when the benefits of the protection or support that a patient recieved is taken away without proper notification after the patient has been accepted.

This can occur in a number of different ways;

  1. Doctor does not visit patient while the patient is at the hospital.
  2. Doctor refuses to treat a patient who was previously accepted without reason or motive.
  3. Failure to follow up with patient´s medical reports or health.
  4. Failure to assign a substitute when not available. (for example, a woman is giving birth and the doctor leaves the hospital without checking the patient or following up with their health status and doesn't deliver the patient's notes to the doctor who is working the other shift)

It is not considered abandonment when the doctor-patient relationship is legally terminated. This happens when the physician and the patient mutually agree to terminate the relationship.

8 0
4 years ago
You are asked to complete a short survey after attending a free comedy show on campus. If the first question asked you to give a
klio [65]

Answer: A Semantic Differential Scale question.

A rating scale question is a type of a closed-end question in which the person who takes the survey assess the question on a given scale.  

A rating scale may be a Likert scale or a Semantic differential scale.

In a Likert scale the choices usually range between strongly agree and strongly disagree.  

In a semantic differential scale, however, each end of the scale has opposing sentences. In the question above, the five-point scale ranges from “hilarious” to “not funny”. Since this scale has opposing sentences at each end, this question is a semantic differential scale question.


6 0
3 years ago
Worthy Ships initially issued 400,000 shares of $1 par stock for $2,000,000 in 2021. In 2023, the company repurchased 40,000 sha
liq [111]

Answer:

Worthy Ships:

Treasury Stock account balance would be $80,000.

Explanation:

Treasury Stock account is a contra account to the Common Stock account.  Using the cost method, the account will have a debit entry and balance of $400,000 in 2023.  In 2024, with the resale of shares, the account will have a credit entry of $320,000.  This would bring the balance to $80,000 at the end of 2024.

8 0
3 years ago
Other questions:
  • E9-24 (similar to) Sierra Mountain Mining paid $ 598 comma 100 for the right to extract mineral assets from a 450 comma 000​-ton
    6·1 answer
  • If the Administrator were examining the actions of a particular agent to determine whether the agent engaged in churning a clien
    15·1 answer
  • A conceptualization the firm as an "activity system" is a means of depicting: A. The extent to which a management is motivated t
    7·1 answer
  • The researchers at beans inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. the new va
    14·1 answer
  • If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the sam
    5·2 answers
  • Natalie and her fiancé Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with
    14·1 answer
  • An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $
    6·1 answer
  • Professional social media sites can also help employers find you. When you create an account, you describe your work history in
    8·2 answers
  • Discuss the tradeoffs between fiber-optic and satellite communication in terms of costs, signal capacity, signaling method, inte
    10·1 answer
  • What is the name given to the study of how wealth is created and distributed?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!