Answer:
The portfolio should invest 48.94% in equity while 51.05% in the T-bills.
Explanation:
As the complete question is not given here ,the table of data is missing which is as attached herewith.
From the maximized equation of the utility function it is evident that
For the equity, here as
- is percentage of the equity which is to be calculated
- is the Risk premium whose value as seen from the attached data for the period 1926-2015 is 8.30%
- is the risk aversion factor which is given as 4.
- is the standard deviation of the portfolio which from the data for the period 1926-2015 is 20.59
By substituting values.
So the weight of equity is 48.94%.
Now the weight of T bills is given as
So the weight of T-bills is 51.05%.
The portfolio should invest 48.94% in equity while 51.05% in the T-bills.
Answer:
Explanation:
The quantity of energy transferred by a force when it is applied to a body and causes that body to move in the direction of the force work.
A. Diagram A
B. Diagram C & D
C. Diagram B
D. Diagram C & D
E. Diagram B
F. Diagram C & D
These are simplified representations of an object's body and the force vectors acting on it. Some of the main forces that are involve are normal force, friction, push or pull and gravity.
Answer:
hot I checked already in my phone