Answer: A: 30% B: Yes they are independent events because they can both happen without the other one. C: No they are not mutually exclusive events because both of them can happen at the same time
Step-by-step explanation:
45 / 100 = .45 = 45%
.45 x 2/3 = .3
.3= 30%
Answer:16:20
Step-by-step explanation:
Calculate the total amount invested by summing up all the values of the investment.
Total = 50,000
Calculate the weight of each investment. For WOOPS, weight = 5000 / 50000 = 10% and so on.
Now, Expected Return = sum of weight x Returns = 10% x 0.14 + 20% x 0.16 + ... + 18%x 0.18 = 16.01%
b) Similarly,
Beta of the portfolio = sum of weight x beta = 10% x 0.6 + 20% x 0.8 + ... + 18% x 0.18 = 0.7605
c) Portfolio has less systematic risk as the beta for the average market is 1, which is above the portfolio
d) Using CAPM, Return = Rf + beta x (Rm - Rf) = 4% + 0.7605 x (14% - 4%) = 11.605%
To calculate the expected return of a portfolio, the investor needs to know the expected return of each security in the portfolio and the total weight of each security in the portfolio. This means that investors need to sum the weighted averages of the expected returns (RoRs) of each security.
Investors are based on estimates of the expected rate of return on securities, assuming that what has proven to be true in the past will be true in the future. Investors do not use the structural view of the market to calculate the expected return. Instead, it determines the weight of each security in the portfolio by dividing the value of each security by the total value of the security.
Learn more about Percentage here: brainly.com/question/843074
#SPJ4
Answer:
x=482
Step-by-step explanation:
First: x-411=71
Add 411 to both sides, which cancels out the -411 leaving just x.
You add 411 to 71 getting 482.
