An investor can design a risky portfolio based on two stocks, a and b. stock a has an expected return of 21% and a standard deviation of return of 39%. stock b has an expected return of 14% and a standard deviation of return of 20%. the correlation coefficient between the returns of a and b is 0.4. the risk-free rate of return is 5%. the expected return on the optimal risky portfolio is approximately __________. (hint: find weights first.)
Answers
The expected return on the optimal risky portfolio is approximately 17.5%.
To find the expected return on the optimal risky portfolio, we first need to calculate the weights of the two stocks in the portfolio. Let wₐ and wᵦ be the weights of stocks a and b in the portfolio, respectively. Since there are only two stocks in the portfolio, we can use the formula for the weight of stock a in the portfolio:
wₐ = (σᵦ / σₐ + σᵦ) * [ (r - r_f) / σₚ ]
where σᵦ and σₐ are the standard deviations of the returns of stocks b and a, respectively; r is the expected return on the portfolio; r_f is the risk-free rate of return; and σₚ is the standard deviation of the returns on the portfolio. Using the given values, we get:
wₐ = (0.20 / (0.39 + 0.20)) * [(r - 0.05) / σₚ]
0.4 * [(r - 0.05) / σₚ]
Similarly, the weight of stock b in the portfolio is given by:
wᵦ = (σₐ / σₐ + σᵦ) * [(r - r_f) / σₚ]
0.6 * [(r - 0.05) / σₚ]
The correlation coefficient between the returns of stocks a and b is given as 0.4. Therefore, the variance of the portfolio can be calculated as:
σₚ² = wₐ² * σₐ² + wᵦ² * σᵦ² + 2 * wₐ * wᵦ * σₐ * σᵦ * p
where p is the correlation coefficient between the returns of stocks a and b. Substituting the values, we get:
σₚ² = 0.4² * 0.39² + 0.6² * 0.20² + 2 * 0.4 * 0.6 * 0.39 * 0.20 * 0.4
0.0847
Taking the square root of this value, we get the standard deviation of the portfolio as:
σₚ = √0.0847
0.2909
Finally, using the weights and expected returns of stocks a and b, we can calculate the expected return on the optimal risky portfolio as:
r = wₐ * rₐ + wᵦ * rᵦ
r = 0.4 * 0.21 + 0.6 * 0.14
r = 0.175 or 17.5% (rounded to one decimal place)
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Related Questions
What are common tasks performed by Law, Public Safety, and Security workers? Check all that apply.
inspecting facilities
patrolling and guarding an area
preparing reports
interpreting and analyzing evidence
repairing broken equipment
designing household products
setting up computers
Answers
Answer:
inspecting facilities
patrolling and guarding an area
preparing reports
interpreting and analyzing evidence
Explanation:
there it is
Some of the common tasks performed by Law, Public Safety, and Security workers include:
A. inspecting facilitiesB. patrolling and guarding an areaC. preparing reportsD. interpreting and analyzing evidenceWho are the Law, Public Safety, and Security workers?Law, Public Safety, and Security workers are career government employees who undertake various social tasks to maintain law and order, public safety, and security among residents.
Some of these Law, Public Safety, and Security services cannot be provided by private entities and individuals.
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question 6 a data analyst has been invited to a meeting. they review the agenda and notice that their data analysis project is one of the topics that will be discussed. they plan to arrive on time and have a pen and paper to take notes. but they do not spend time considering project updates they could share or questions they may be asked. this is appropriate because they’re not the one running the meeting.
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A meeting has been invited for a data analyst. When they look over the schedule, they see that one of the subjects up for discussion is their data analysis project. They have a pen and paper ready to take notes, and they want to come on time. However, they do not take the time to think about project updates or potential questions. Since they aren't in charge of the meeting, this is okay - False
What does an analyst of data do?
A data analyst examines data to find significant customer insights and potential uses for the information.
What are the abilities required to become data analyst?
You need excellent quantitative and analytical skills to succeed as a data analyst. To answer problems logically, you must be able to pay attention to detail. You must also be able to clearly explain your conclusions to others who will use them to make judgments.
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who would not have to file a u-4 registration application as an investment adviser representative with the state?
Answers
A director of the investment advisory firm who does not have any sales responsibility not have to file a u-4 registration application as an investment adviser representative with the state.
.What does U4 registration mean?The Uniform Application for Securities Industry Registration or Transfer, or Form U4, is what this phrase refers to. For the purpose of registering with the relevant authorities and/or SROs, representatives of broker-dealers, investment advisers, or securities issuers must use this form. Broker-dealers who are FINRA members are required to file Forms U4 on behalf of prospective related persons in accordance with FINRA Rule 1013. A FINRA ruling is typically delivered within two to three weeks. If Tina fills out the form with false or insufficient information, the process can take longer. Tina begins filling out her online U4 form after Jason gives a brief summary of the form.
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1. Workplaces that grow plants, such as farms, nurseries, greenhouses,
gardens, and parks are part of
Plant Systems
Animal Systems
Food Products & Processing Systems
Environmental Service Systems
Answers
Answer:
Plant Systems
Explanation:
The plant system entails the science of how plants grow. It is the study of the different types of plants and how they impact our world. Gardens, farms, nurseries, greenhouses, and parks also form part of the plant's system.
Plant Systems specialists help feed the nation by monitoring our plant food quality and safety. They provide information that aids consumers in making sensible nutritional decisions.
With regard to business definition, railroads may have lost business because they:
Answers
With regard to business definition, railroads may have lost business because they defined their business too narrowly.
Railways are a safe land transport system whilst in comparison to different kinds of shipping. Railway transport is capable of excessive stages of passenger and load usage and strength performance however are frequently less flexible and more capital-intensive than avenue delivery when decreased site visitor levels are taken into consideration.
The Railroad become the first advanced in top-notch Britain. a person named George Stephenson efficaciously implemented the steam technology of the day and created the world's first hit locomotive.
The primary engines used in the United States of America had been bought from Stephenson Works in England.
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Which best describes how a recession develops as demand and production decrease?
a.)The recession accelerates.
b.) The recession spirals out of control
c.)The recession feeds on itself.
d.) The recession starts and stops.
Answers
The best answer to describe how a recession develops as demand and production decrease is: c.) The recession feeds on itself.
When demand and production decrease, it can lead to a cycle of economic decline and further contraction, which is often referred to as a recession feeding on itself. Here's a more detailed explanation:
During a recession, reduced consumer demand leads to decreased production and sales for businesses. As a result, companies may cut back on production, lay off workers, or even shut down operations. These actions further reduce consumer spending power, leading to a continuous decline in demand. This downward spiral can cause more businesses to struggle, leading to additional job losses and decreased spending.
The reduced spending and economic downturn can also have a ripple effect on other sectors of the economy. For example, decreased consumer spending can impact suppliers, retailers, and service providers, causing a cascading effect of reduced demand and production throughout the economy.
As the recession feeds on itself, the negative cycle can become self-reinforcing, exacerbating the economic decline. It often takes concerted efforts by governments, central banks, and other economic actors to implement measures such as fiscal stimulus, monetary policy adjustments, or other interventions to break the cycle and stimulate economic recovery.
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Mechelle has a life estate in a property in rural Maine. Mechelle has allowed people to camp and park in the backwoods of the property, leaving piles of trash everywhere and thereby diminishing the value of the property. Mechelle is allowing what to happen
Answers
The scenario that's illustrated regarding the property in this case is improper dominion.
What is dominion?It should be noted that in law, dominion simply means the right to control the ownership of a a property.
In this case, since Mechelle has allowed people to camp and park in the backwoods of the property, leaving piles of trash everywhere and thereby diminishing the value of the property, this illustrates improper dominion.
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4) Your company's latest ad appears on a popular news website alongside ads from several other companies. What element in the macromodel of the communication process do these other ads represent? A) Encoding B) Noise C) Decoding D) Messaging E) Media
Answers
The other ads from different companies appearing alongside your company's ad on a popular news website represent the element of "Media" in the macro model of the communication process. So the right answer is (E) Media.
In the macro model of the communication process, the media refers to the channel or medium through which the message is transmitted. It is the platform or vehicle that carries the communication to the intended audience.
In this case, the popular news website serves as the media through which your company's ad, as well as the ads from other companies, are being displayed.
Therefore, the other ads from different companies represent the element of "Media" in the communication process.
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Major cell manufacturers have released phones with digital photo and video capabilities and gps. this is an example of what?
Answers
This is an example of technological convergence. Technological convergence refers to the merging or integration of different technologies into a single device or platform.
In this case, major cell phone manufacturers have incorporated digital photo and video capabilities, as well as GPS functionality, into their phones.
This convergence allows users to capture photos and videos, as well as utilize GPS for location-based services, all in a single device.
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how much water is in a water melon plz use percentage. here is 10 points
Answers
answer:
92 percent
explanation:
watermelon contains 92 percent water and 6 percent sugar
Which of the following is one way that land contributes to production?
A. Tools are created by humans to aid production.
B. Roads allow for the transportation of goods.
C. Ideas are needed to figure out how to use natural resources.
D. Energy from the environment fuels production.
Answers
2. A closer estimate of the total cost can be made by including the estimated sales tax. Use a formula to calculate the estimated cost for July 2014 using 7% sales tax. Then, write the formula you used and the estimated cost in the cell below. Hint: Convert 7% into a decimal for the formula.
Answers
Answer: Hello your question has some missing details hence I will provide an answer based on the general scope of your question
answer ; =([Cost] * 1.07)
Explanation:
Assuming the table heading for estimated cost in July 2014 is named "Cost"
Total estimated cost
Total = Cost * ( 1 + Sales Tax )
= Cost * ( 1 + 0.07 )
= Cost * 1.07
Excel equivalent formula used that can be used = ([Cost] * 1.07)
enter mia profit/loss for the 2 month
Answers
Which of the following statements about creating a brand is true?
Select one:
a. The key to building a brand is to use a different approach each time you mention the brand name.
b. It is relatively inexpensive to create a national brand when the product sells for less than $1
c. Creating a brand is very different from positioning.
d. Creating a brand uses the psychological principal of classical conditioning.
e. It is important not to let the customer confuse product benefits with benefit with the brand name.
Feedback
Answers
d. Creating a brand uses the psychological principle of classical conditioning. The true statement about creating a brand is option d. Creating a brand uses the psychological principle of classical conditioning.
Creating a brand involves associating positive emotions and experiences with the brand name through repeated exposure and consistent messaging. Classical conditioning, a psychological principle, helps form these associations in consumers' minds. This helps build brand recognition and loyalty.
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What is the population of Quito? Give a simple Answer
less than 500,000
about 850,000
over 1 million
3 million
Answers
Answer:
over 1 million
Explanation:
It has been over 1 million for the past couple years, in 2019 it was just below 2 million.
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Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply
Answers
They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply
________ reflects the link between consumers’ demand for a company’s product and the company’s purchase of necessary inputs to manufacture or assemble that particular product.
Answers
Derived Demand reflects the link between consumers’ demand for a company’s product and the company’s purchase of necessary inputs to manufacture or assemble that particular product.
The call for every one of the elements of manufacturing is often referred to as a "derived" demand to emphasize the truth that the relationship between the element's price and the quantity of the element demanded by groups the use of it in manufacturing is directly dependent on the patron name for the very last product(s) the issue.
As a result, the call for exertions is derived name from the call for goods and offerings. For example, if the demand for a first-rate alongside wheat increases, then this results in a growth in the call for hard work, in addition to calls for different factors of production together with fertilizer.
Direct and derived demand. Direct call for is the call for for a completely last precise. food, garb, and cell phones are an instance of this. Also called a self-sustaining call, it's miles impartial of the call for one-of-a-kind merchandise. Derived call for is the call for a product that comes from the usage of others.
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Not every new client needs to fill out a client intake form.
A) True
B) False
Answers
True, not every new client needs to fill out a client intake form.
Client intake forms are typically used by businesses or organizations to gather important information from new clients. However, the requirement for a client to fill out an intake form can vary depending on the specific circumstances and policies of the business or organization. In some cases, a client may already have their information on file or may be exempt from filling out a form due to special circumstances. Therefore, it is true that not every new client needs to fill out a client intake form.
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This software application can be used to organize, analyze, and illustrate data.
Answers
Answer:
its Excel :)
Explanation:
I learned abt it
Answer:
person above me
Explanation:
Eric and Chris run a non-regulated natural monopoly producing electricity for a small town. The barrier most likely preventing other firms from competing with her is
Answers
Answer:
increasing returns to scale
Explanation:
The biggest barrier for other firms are increasing returns to scale. This is because Eric and Chris have their company already established and also have their clientele all hooked up and using their service. This allows them to produce a much higher electrical output for their clients with a certain Income. Newer companies will need a much higher income just to be able to produce a similar electrical output in order to try and compete with Eric and Chris.
Which of the following describes occupational safety?
looking at the way people do their work to find where improvements can be made
comparing data from different time periods within the same organization
employee health and safety in a workplace or on a job site
codes that describe a strict set of rules and procedures
Answers
the accounting for warranty cost is based on the expense recognition principle, which requires that the estimated cost of honoring warranty contracts should be recognized as an expense: a) only if the repairs are expected to be made within one year. (b) at the end of the warranty period. (c) in the period in which the product was sold. (d) when the product is brought in for repairs.
Answers
The accounting for products warranty cost is based on the expense recognition principle. A product warranty is a written promise made to a customer by the producer or supplier of a good or service that. The correct answer is (d) when the product is brought in for repairs.
The event of a defect, the product will be fixed, replaced, or both, at no additional cost. The terms and conditions of the warranty will be outlined in the document's content.
Warranty costs must be reported using the matching principle of accounting, in which expenses are matched with the corresponding revenues. The warranty cost must therefore be reported in the fiscal year in which the sale was made rather than when the payment for the actual repair is made, unless the business is switching to cash basis accounting from accrual basis accounting
Complete question:
the accounting for warranty cost is based on the expense recognition principle, which requires that the estimated cost of honoring warranty contracts should be recognized as an expense:
a) only if the repairs are expected to be made within one year.
(b) at the end of the warranty period.
(c) in the period in which the product was sold.
(d) when the product is brought in for repairs.
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\(\rm{\pink{\underline{\underline{\blue{ANSWER:-}}}}}\) √ literally just say Bralnllest and u will get one lol
Answers
Answer:
Bralnllest
Explanation:
Component procedures may authorize DoD Governmentwide Commercial Purchase Card Ordering Officers to make purchases up to the simplified acquisition threshold in which three of the following cases?
1. Using Simplified Acquisition Procedures above or below the micro purchase threshold against Federal Supply Contract vehicles
2. At or below the micro purchase threshold from any vendor
3. At or below the micro purchase threshold against Federal supply Schedule contracts, FedMall, or other ordering systems that are authorized in component procedures
4. Above or below the micro purchase threshold against contract vehicles issued for the component by a contracting officer that contain a provision authorizing order and payment by the Governmentwide Commercial Purchase Card
Answers
Component procedures may authorize DoD Governmentwide Commercial Purchase Card Ordering Officers to make purchases up to the simplified acquisition threshold in option 1, 3 and 4.
What is the Simplified Acquisition Threshold?The simplified acquisition threshold (SAT), which in federal acquisition is seen or is one that is expressed as the anticipated award value of a contract, is the financial number above which contracting officers are instructed to solicit and award contracts using streamlined methods.
Note that the Commercial Purchase Card for the Government as a Whole - The Purchase Card is used as a convenient way to spend money while buying products and services. It is given to approved agency employees and resembles a commercial credit card in nature. It is not the same as the Government Travel Card.
Therefore, in context of the above, one can say that a program that manages a component is known as a component procedure (or procedure). A component procedure may be used to install, remove, or manage a component.
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consider the information about the economy of pakistan. note that the currency of pakistan is the rupee. the government purchases: 3.40 3.40 trillions of rupees. individuals consume: 11.00 11.00 trillions of rupees. individuals save: 5.45 5.45 trillions of rupees. businesses invest: 1.65 1.65 trillions of rupees. foreigners spend: 0.50 0.50 trillions of rupees to purchase pakistani firms. pakistan imports: 2.48 2.48 trillions of rupees. pakistan exports: 1.32 1.32 trillions of rupees. calculate pakistan's gdp. assume that the values are all current and no conversions need to be made. give your answer in terms of trillions of rupees, and round to two decimals.
Answers
The GDP of Pakistan is 14.89 trillion, assuming that the values are all current and no conversions need to be made.
What is GDP?Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced and sold by countries in a given time period.
The formula to compute the GDP is given below:
GDP = Consumption + Investment + Government purchase + Net exports
where,
Consumption = 11.00trillions
Investment = 1.65 trillions
Government purchase = 3.40 trillions
Net exports = Exports - imports
= 1.32 trillions - 2.48 trillions
The Pakistan's GDP would be
= 11.00 trillions + 1.65 trillions + 3.40 trillions + 1.32 trillions - 2.48 trillions
= 14.89 trillions
Therefore, 14.89 is the GDP of Pakistan.
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Which Sales Channel has been opened to manufacturers because of digital tools?
A. Distribution
B. B2B
C. Direct to Consumer
D. Wholesale
Answers
The sales channel that has been opened to manufacturers as a result of digital tools is B2B.
Through B2B e-commerce, manufacturers can be able to sell their goods directly to the consumers through online platforms.It should be noted that because we're in a digital era now, consumers can be able to make purchases for products through online sales platforms and the goods will be delivered to the person's address. This is vital for businesses as manufacturers can make more sales and improve their revenue.In conclusion, the correct option is B.
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When a customer buys something with a credit card, the pays the store on the customer’s behalf.
Answers
TRUE
Explanation:
This statement is true
blitz corp. had total sales of $2,970,000 last year and has 105,000 shares of stock outstanding. the benchmark ps is 1.58 times. what stock price would you consider appropriate?
Answers
Based on the given information and the benchmark PS ratio, stock price of $44.69 per share would be considered appropriate for Blitz Corp
To determine the appropriate stock price for Blitz Corp., we can use the price-to-sales ratio (PS) and the total sales and number of shares outstanding for the company.
PS = Stock Price / Sales per Share
We can rearrange this equation to solve for the stock price:
Stock Price = PS x Sales per Share
Sales per Share = Total Sales / Number of Shares Outstanding
Substituting the values given:
Sales per Share = $2,970,000 / 105,000 shares = $28.29 per share
Stock Price = 1.58 x $28.29 per share = $44.69 per share
Therefore, a stock price of $44.69 per share would be considered appropriate for Blitz Corp. based on the given information and the benchmark PS ratio.
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Peter and Olga live near a lake with open fishing, and both have fishing boats there. They are the only two providers of fish to their local fish market. What is likely to happen if the local fish market maintains a Nash equilibrium? Fish prices will fall due to competitive pressures. The supply of fish will dwindle due to overfishing. The supply of fish will flourish due to underfishing. Peter and Olga will obtain the maximum possible profits.
Answers
If the local fish market maintains a Nash equilibrium it is likely that Peter and Olga will obtain maximum possible profits .
Option D is correct .
What is Nash Equilibrium?The Nash Equilibrium is a decision theorem in game theory that states that players can achieve their desired outcome by not deviating from their initial strategy. In a Nash equilibrium, each player's strategy is optimal given the other players' decisions.
Why is the Nash equilibrium stable?A Nash equilibrium in a mixed strategy game is stable if a small change (especially a very small change) in a player's probability leads to a situation where two conditions are met. Players who didn't switch don't have a better strategy in the new situation
What is the best definition of profit?Profit is the term used to describe the monetary profit that is generated when the income from a commercial activity exceeds the costs, expenses and taxes of maintaining that activity. Economic profit from the use of capital in each transaction. Compare gross profit and net profit.
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Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow
Answers
Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow taxable income would fall to zero, taxes would be zero, and net cash flow would rise.
An asset loses value over time as a result of use, damage, or obsolescence. Depreciation is the measurement for this decline. Description: A loss in an asset's value, or depreciation, can also be brought on by other reasons like bad market conditions, etc.
The base of an income tax system is referred to as taxable income. In other words, the amount of revenue that was subject to taxation. In general, it comprises all or a portion of the items of income and is lessened by costs and other deductions.
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