A client asks you to create a minimum variance portfolio from two funds, A and B. Fund A has an expected return of 7% and a standard deviation of 13%. Fund B has an expected return of 8% and a standard deviation of 17%. The correlation between the returns of funds A and B is 0.17. What is the percentage of the total portfolio you should recommend to invest in fund A to obtain the minimum variance portfolio

Answers

Answer 1

Answer:

hope this helps b or a

Explanation:


Related Questions

Pedro sells investment land on September 1, 2019. Information pertaining to the sale follows: Adjusted basis $25,000 Selling price 90,000 Selling expenses 1,500 Down payment 12,000 Four installment payments 15,000 Mortgage assumed by the buyer 18,000 Required: Each installment payment is due on September 1 of 2020, 2021, 2022, and 2023 (ignore interest). Determine the tax consequences in 2019, 2020, 2021, 2022, and 2023. (Do not round intermediate calculations. Round your final answers to nearest whole dollar value.)

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The tax consequence in 2019 is $10584 while the tax consequence from 2020 to 2023 will be $13229.

Bases on the information given, the realized gain will be:

= $90000 - $25000 - $1500

= $63500

The gross profit percentage will be:

= 63500/(90000 - 18000) × 100

= 63500/72000 × 100

= 88.19%

The tax consequence in 2019 will be:

= $12000 × 88.19% = $10584

The tax consequence in 2020 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2021 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2022 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2023 will be:

= $15000 × 88.19% = $13229

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If a firm produces nothing, which of the following costs will be zero?
a. total cost
b. fixed cost
c. opportunity cost
d. variable cost

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D is the answer

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The cost that will be zero if a firm produces nothing is variable cost  because it is a cost that changes with level of output.

What is variable cost?

Variable cost refers to the cost that vary with the level of output. This means that at every activity leve, the variable cost changes with it.

The above means that a constant amount per unit produced is the variable cost of manufacturing which implies that once the output is zero, the variable cost will be zero as well.

Hence, the cost that will be zero if a firm produces nothing is variable cost.

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Red Sun Rising just paid a dividend of $2.58 per share. The company said that it will increase the dividend by 20 percent and 15 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.6 percent. If the required return is 12 percent, what is the stock price today

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Assuming  the required return is 12 percent, the stock price today is $40.61.

Given:

Dividend=$2.58 per share

Increase in Dividend=20% and 15%

Number of year=2 years

Increase in Annual Dividend=3.6%

Required return=12%

P2=Stock price today

Now let calculate the stock price today

P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2

P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2

P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]

P2=$2.7643+$2.838329+($43.91155/1.2544)

P2=$2.7643+$2.838329+$35.0060

P2=$40.61

Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.

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construct a quadriteral PQRS, given that QR=4.5cm PS=5.5cm,RScm5cm and diagonalPR=5.5cmand diagonal SQ=7cm​

Answers

Answer:

The quadrilateral is drawn above

Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10 % 8 % 2 0.20 13 % 7 % 3 0.20 12 % 6 % 4 0.30 14 % 9 % 5 0.20 15 % 8 % The expected rates of return of stocks A and B are _____ and _____, respectively. Multiple Choice 7.7%; 13.2% 14%; 10% 13.2%; 9% 13.2%; 7.7%

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The expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

The expected rate of return refers to the profit or loss that an investor can anticipate on an investment.

The expected rate of return of stocks A will be:

= 0.1(10%) + 0.2(13%) + 0.2(12%) + 0.3(14%) + 0.2(15%)

= 13.2%

The expected rate of return for stocks B will be:

= 0.1(8%) + 0.2(7%) + 0.2(6%) + 0.3(9%) + 0.2(8%)

= 7.7%

In conclusion, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

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in hypothesis testing, a type 2 error occurs whaen​

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A type I error (false-positive) occurs if an investigator rejects a null hypothesis that is actually true in the population; a type II error (false-negative) occurs if the investigator fails to reject a null hypothesis that is actually false in the population.

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Miss Hawaii

Sylvia is a budget analyst for the state of Kentucky. her job is to look over the state government's spending and suggest and suggest ways to save on government funds. What education might have been appropriate for Sylvia to qualify for this position

Answers

There is various education that might have been appropriate for Sylvia to qualify for this position. One of the education includes Bachelor's Degree in Public Administration.

Other education that might have been appropriate for Sylvia to qualify for this position includes the following:

Minimum of Bachelor's Degree in Business, Finance, Accounting, Economics, Actuarial Science, Statistics, Applied Mathematics, etc.

This is because the ability to prepare budget analysis would require Sylvia to possess numeracy and analytical skills at a degree level.

Regardless of the degree, he must hold, Sylvia is expected to have passed coursework in accounting, economics, statistics, etc.

Hence, in this case, it is concluded that Sylvia must have studied business and finance-related courses.

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Answer:

bachelor’s degree in accounting

Answers to the whole thing (edmentum)

1. reggie = therapist services

2. paul = c

3. benji = d

4. tara = c

5. abe = a

6. benji = a

7. carlos = b

8. two carpenters = c

9. sam = c

10. liz = b

11. sharron = a

12. latasha = a

13. hugh = b

14. kenneth = a

15. jaylene = b

16. sean = b

17. even though = true

18. tasha = b

theres more so try your best:))

Kay is working with Charity to help Charity identify the type of career she wants and what steps to take to realize her goals. Kay and Charity are: A. in the development phase of career planning. B. working through an organizational assessment. C. conducting a self assessment of Charity. D. in the direction phase of career planning.

Answers

Answer:

I would say the answer is C. conducting a self assessment of Charity.

Explanation:

They're trying to determine what career Charity wants and the goals she might have in order to achieve it. So before they can make any real decisions, they need to assess Charity's character, and what she wants first.

Hope this makes sense. Also please let me know if I'm somehow wrong :)

the necessity of marketing and advertising for any business

Answers

Answer:

Marketing is important because it helps you sell your products or services, by advertising your business you are showing more people about it

Explanation:

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