Business, 02.03.2020 21:17 fluffykitty21
Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 57% in ECB and the remainder in WCB? (Hint: Use the sample standard deviation formula.)
Year ECB WCB
2007 40.00% 40.00%
2008 -10.00% 15.00%
2009 35.00% -5.00%
2010 -5.00% -10.00%
2011 15.00% 35.00%
Average return 15.00% 15%
Standard deviation 22.64% 22.64%
Answers: 2
Business, 22.06.2019 11:00
Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]
Answers: 3
Business, 22.06.2019 11:30
1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c incorrect
Answers: 2
Business, 22.06.2019 12:20
Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount
Answers: 2
Business, 22.06.2019 13:20
Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?
Answers: 3
Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little...
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