Business
Business, 06.06.2020 18:00, highflylex279

Suppose there are two risky assets in the economy. Asset 1 has an expected return of 10% and a standard deviation of 15%. Asset 2 has an expected return of 14% and a standard deviation of 20%. The correlation between these two assets is 1. (a) Consider a portfolio with 40% of asset 1 and 60% of asset two. Measure the level of risk for this portfolio. (b) Now assume that in addition to the two risky assets, there is also a riskless asset with an expected return of 5%, and you have a portfolio with 50% invested in the riskless assets. The remaining of your wealth is invested in the portfolio in (a). What are the expected return and standard deviation for this portfolio

answer
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 03:30, jonathanLV6231
Eagle sporting goods reported the following data at july ​31, 2016​, with amounts adapted in​ thousands: ​(click the icon to view the income​ statement.) ​(click the icon to view the statement of retained​ earnings.) ​(click the icon to view the balance​ sheet.) 1. compute eagle​'s net working capital. 2. compute eagle​'s current ratio. round to two decimal places. 3. compute eagle​'s debt ratio. round to two decimal places. do these values and ratios look​ strong, weak or​ middle-of-the-road? 1. compute eagle​'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagle​'s current ratio. ​(round answer to two decimal​ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagle​'s debt ratio. ​(round answer to two decimal​ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios look​ strong, weak or​ middle-of-the-road? net working capital is ▾ . this means ▾ current assets exceed current liabilities current liabilities exceed current assets and is a ▾ negative positive sign. eagle​'s current ratio is considered ▾ middle-of-the-road. strong. weak. eagle​'s debt ratio is considered ▾ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.
Answers: 3
image
Business, 22.06.2019 07:30, suyi14
An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $
Answers: 1
image
Business, 22.06.2019 07:30, maskythegamer
Why has the free enterprise system been modified to include some government intervention?
Answers: 1
image
Business, 22.06.2019 10:30, kingyogii
The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.
Answers: 1
Do you know the correct answer?
Suppose there are two risky assets in the economy. Asset 1 has an expected return of 10% and a stand...

Questions in other subjects:

Konu
Mathematics, 28.01.2021 16:00
Konu
Biology, 28.01.2021 16:00