Answer:
The less the correlation between two variables means the more different their output is.
A.) If Rachel wants to diversify her investment by investing on bonds that do not closely follow the returns on the bond. then she should invest in the stocks with low correlation with bonds. I.e: small cap stocks.
B.) Similarly, due to low correlation, small cap bonds will increase ( comparatively to large cap bonds) as the return on her bonds wil drop and vice versa.
Answer: The answer is A and D
Step-by-step explanation:
The amount that the bank loaned out at 7.9% is $1,574.00
How do represent the amounts lent at different rates?
On the assumption that x amount was loaned at 7.9% and that the remaining amount, (8,200-x) was loan out at 7.4%, we can determine the interest charged on each loan as the loan multiplied by the interest rate
interest on 7.9% loan=7.9%*x=0.079x
interest on 7.4% loan=7.4%*(8200-x)
interest on 7.4% loan=606.80-0.074x
total interest=0.079x+606.80-0.074x
total interest=0.005x+606.80
total interest on loans=614.67
614.67=0.005x+606.80
614.67-606.80=0.005x
7.87=0.005x
x=7.87/0.005
x=amount loaned at 7.9%=$1,574.00
y=$8200-$1574
y=$6,626.00
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The answer is Aimee divided out the factors 4 and 2 form 875
