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FinnZ [79.3K]
3 years ago
14

Suppose you have a two-stock portfolio consisting of Apple and Tesla stock. The portfolio weight of Apple is 25% and the rest is

Tesla. The volatility of annual returns is 35% for Apple and 60% for Tesla. The correlation coefficient between the two stocks' returns is 0.22. What's the volatility of your portfolio?
Business
1 answer:
iren [92.7K]3 years ago
4 0

Answer:

Standard deviation = 47.69% (Approx)

Explanation:

Given:

Portfolio of Apple stock w1 = 25% = 0.25

Portfolio of Tesla stock w2 = 75% = 0.75

Standard deviation return Apple σ1 = 35% = 0.35

Standard deviation return Tesla σ2 = 60% = 0.60

Correlation coefficient ρ12 = 0.22

Find:

Standard deviation

Computation:

Standard deviation = √w1²σ1² + w2²σ2² + 2w1σ1w2σ2ρ12

Standard deviation = 0.4769

Standard deviation = 47.69% (Approx)

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For a repayment schedule that starts at EOY four at ​$Z and proceeds for years 4 through 9 at ​$2Z​, ​$3Z​,..., what is the valu
Tamiku [17]

Answer:

$778.05625

Explanation:

The computation of the amount of repayment is shown in the attachment below:

Given that

Proceeds for year 4 through 9 at $2Z​, ​$3Z

The Principal of the loan amount = $10,000

Interest rate = 7% per year

Based on the given information, the value of Z or the amount of repayment is  

= Principal of the loan amount ÷ Total annuity

= $10,000 ÷ 12.85254119

= $778.05625

6 0
3 years ago
Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each depa
Goryan [66]

Solution:

S1  $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )

S2  total is $162,000 + $126,000 = $288,000

S2  $126,000 is allocated 19.7% to P2 or $81000

Under the step-method of cost allocation,

the amount of costs allocated from $2 to P2 would be $81000

5 0
3 years ago
Although the number of people employed in manufacturing in the united states has decreased since 1950, each person is now produc
gogolik [260]

The statement mentioned above regarding  manufacturing in the United States is true.

<h3>What is manufacturing?</h3>

Manufacturing refers to the changing or conversion of the raw material into finished products and deliver it to the customers directly or indirectly. The manufacture of the products in order to maximize their profits and satisfy the needs of the customers.

More young individuals entering the industrial industry could have a significant impact on the manufacturing growth in the United States. Young people use their creativity and knowledge to increase the production.

The number of people has increased in manufacturing sectors. Therefore, it can be concluded that the statement mentioned above is true.

Learn more about manufacturing here:

brainly.com/question/13740503

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5 0
2 years ago
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the
Andrews [41]

Answer:

The correct answer is A. Both Laura and Cassie are correct.

Explanation:

Since Laura says that the present value of $ 700 to be received one year from today if the interest rate is 6 percent is less than the present value of $ 700 to be received two years from today if the interest rate is 3 percent, and Cassie says that $ 700 saved for one year at 6 percent interest has a smaller future value than $ 700 saved for two years at 3 percent interest, to determine who is right, the following calculations must be performed:

700 x 1.06 = 742

700 x 1.03 ^ 2 = 742.63

Therefore, both Laura and Cassie are correct in their claims.

5 0
3 years ago
Difference between sole proprietorship and independent contractor
wariber [46]

Answer:

Explanation:

A sole proprietor is a person who owns, manage, finance and organize a business firm.

It refers to an individual who owns a business that has not been registered as a business entity. Such business includes partnership, limited liability company (LLC) and a corporation.

A sole proprietor is responsible for decision making process of his business and also bears the burden of profit, loss and tax alone.

WHILE

An independent contractor is an individual who works for another individual. An independent contractor provides services to another person but he is not an employee of the other person. An independent contractor is a self employed person who provides professional services to a business organzation.

He is paid based on the amount of work done. Examples of independent contractor includes graphics designer, data analyst, web designer or IT expert.

8 0
3 years ago
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