Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these stocks depend mainly on the next healthcare bill to be passed by Congress. The possible outcomes and returns are:
Outcome Probability Return for Stock A Return for Stock B
1=Republican Bill 0.8 12% -5%
2=Democratic Bill 0.2 3% 20%
What is the expected return and a standard deviation of a portfolio that has 50% of its value in stock A and 50% in stock B?
a) 9.9% and 3.2%
b) 7.5% and 4%
c) 5.1% and 3.2%
Answers: 2
Business, 22.06.2019 08:50, terrancebest
Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4
Answers: 2
Business, 22.06.2019 20:30, anilauferc
You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase
Answers: 3
Business, 22.06.2019 21:00, graysonisok
Noah met an old friend at a coffee shop. he jotted down the friend's new phone number, but later that afternoon he could not find it or remember what he had done with it. a couple of days later, noah went back to the coffee shop, and while waiting in line, he suddenly remembered where he had put the phone number. this is an example of:
Answers: 1
Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these...
Health, 26.01.2021 20:00
Physics, 26.01.2021 20:00
History, 26.01.2021 20:00
French, 26.01.2021 20:00