Business, 09.10.2019 18:30 2019reynolds

Suppose you have some money to investlong dashfor simplicity, $1long dashand you are planning to put a fraction w into a stock market mutual fund and the rest, 1 minus w, into a bond mutual fund. suppose that $1 invested in a stock fund yields upper r subscript s after 1 year and that $1 invested in a bond fund yields upper r subscript b, suppose that upper r subscript s is random with mean 0.07 (7%) and standard deviation 0.06, and suppose that upper r subscript b is random with mean 0.04 (4%) and standard deviation 0.03. the correlation between upper r subscript s and upper r subscript b is 0.21. if you place a fraction w of your money in the stock fund and the rest, 1 minus w, in the bond fund, then the return on your investment is upper r equals wr subscript s plus (1 minus w )upper r subscript b. suppose that w = 0.42. compute the mean and standard deviation of r. the mean is nothing. (round your response to three decimal places.) the standard deviation is nothing. (round your response to three decimal places.)

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 05:00

Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the survey asks participants to rate their overall health using a 5-point rating scale. what is the scale of measurement used for this question? ratio ordinal interval nominal

Answers: 1

Answer

Business, 22.06.2019 15:00

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Answers: 2

Answer

Business, 22.06.2019 17:00

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 18:50

)a business incurs the following costs per unit: labor $125/unit, materials $45/unit, and rent $250,000/month. if the firm produces 1,000,000 units a month, calculate the following: a. total variable costs b. total fixed costs c. total costs

Answers: 1

Answer

You know the right answer?

Suppose you have some money to investlong dashfor simplicity, $1long dashand you are planning to put...

Questions