Business, 15.04.2020 01:18 kroe417

Suppose that there are many stocks in the security market and that the characteristics of stocks A and B are given as follows:
Stock Expected Return Standard Deviation
A 14% 5%
B 15% 13%
Correlation = –1
(a) Suppose that it is possible to borrow at the risk-free rate, rf. What must be the value of the risk-free rate? (Hint: Think about constructing a risk-free portfolio from stocks A and B.)

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:20

Alyeska services company, a division of a major oil company, provides various services to the operators of the north slope oil field in alaska. data concerning the most recent year appear below: sales $18,000,000 net operating income $6,300,000 average operating assets $35,200,000 1. compute the margin for alyeska services company. (round your answer to 2 decimal places.) 2. compute the turnover for alyeska services company. (round your answer to 2 decimal places.) 3. compute the return on investment (roi) for alyeska services company. (round your intermediate calculations and final answer to 2 decimal places.)

Answers: 1

Answer

Business, 22.06.2019 03:10

Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today

Answers: 3

Answer

Business, 22.06.2019 10:00

What is the difference between an "i" statement and a "you" statement? a. the "i" statement is non-confrontational b. the "you" statement is non-confrontational c. the "i" statement is argumentative d. the "you" statement is neutral in tone select the best answer from the choices provided

Answers: 1

Answer

Business, 22.06.2019 12:30

Sales at a fast-food restaurant average $6,000 per day. the restaurant decided to introduce an advertising campaign to increase daily sales. to determine the effectiveness of the advertising campaign, a sample of 49 days of sales were taken. they found that the average daily sales were $6,300 per day. from past history, the restaurant knew that its population standard deviation is about $1,000. if the level of significance is 0.01, have sales increased as a result of the advertising campaign? multiple choicea)fail to reject the null hypothesis.b)reject the null hypothesis and conclude the mean is higher than $6,000 per day.c)reject the null hypothesis and conclude the mean is lower than $6,000 per day.d)reject the null hypothesis and conclude that the mean is equal to $6,000 per day.expert answer

Answers: 3

Answer

You know the right answer?

Suppose that there are many stocks in the security market and that the characteristics of stocks A a...

Questions