Answer:
0.76
Explanation:
So, in this particular question we are given that that there are two assets which are the; [1]. stock fund and [2]. a long-term government and corporate bond fund.
From the question/problem, we have that the Expected ret and the std. dev. for the Stock fund is 18% and 25% respectively. Also, the Expected ret and std. dev. for Bond fund 11% and 18% respectively.
Thus, the investment proportion in the minimum variance portfolio of the bond fund = 1 - [ ( 18%)² - 0.4 × 25% × 18%) ÷ ( 25%)² + (18%)² - 2 × 0.4 × 25% × 18%. = 1 - [0.0144 ÷ 0.0609 ] = 1 - 0.24 = 0.76.
E
I hope this helps and have a wonderful day filled with joy!!
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Answer:
The answer is B. contributes to U.S. GDP, but not U.S. GNP
Explanation:
Gross Domestic Product (GDP) is the market value of all final goods and services produced within the economy of a country within a period of time.
Gross National Product(GNP) is the market value of all final goods and services produced by a citizen of a country irrespective of whether they are in the country or outside the country within a period of time.
The BMW plant in Spartanburg which produces $10million worth of vehicles is in USA but the company in owned by Germans. Since it is produced within the economy of USA, it will count for USA's GDP but it won't count for USA's GNP because it is not owned by USA citizen rather, it will count for Germany's GNP because it is owned by Germans.
Answer:
The answer is inelastic.
Explanation:
Elasticity is the degree of responsiveness of a change in one variable to a change in the other variable.
A good ir service is said to be inelastic if the change in quantity demanded is negligible when the price of the goods or services change i.e the change is not sensitive to price. Mostly, the goods or services in this category are considered to be a neccesity. So if the price increases, consumers will have no choice than to buy it.
