Business, 17.04.2020 00:30, sarahsteelman
The Bank of Tinytown has two $20,000 loans that have the following characteristics: Loan A has an expected return of 10 percent and a standard deviation of returns of 10 percent. The expected return and standard deviation of returns for loan B are 12 percent and 20 percent, respectively. a. If the correlation coefficient between loans A and B is .15, what are the expected return and standard deviation of this portfolio?b. What is the standard deviation of the portfolio if the correlation is -.15?c. What role does the covariance, or correlation, play in the risk reduction attributes of modern portfolio theory?
Answers: 2
Business, 22.06.2019 08:00, savannahworkman11
How do communism and socialism differ in terms of the role that government plays in the economy ?
Answers: 1
Business, 22.06.2019 10:40, emojigirl5754
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable
Answers: 2
Business, 22.06.2019 15:10, hsbhxsb
Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a. wimpy’s production and productivity are greater than popeye’s. b. popeye’s production is greater than wimpy’s, but his productivity is less. c. wimpy’s production is greater than popeye’s, but his productivity is less. d. popeye’s production and productivity are greater than wimpy’s.
Answers: 3
The Bank of Tinytown has two $20,000 loans that have the following characteristics: Loan A has an ex...
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