subject
Business, 12.02.2021 07:10 abbie722

The following represents the probability distribution of future returns for stock A and stock B. State of Economy Probability Return on Security A Return on Security B state 1 0.35 1% 22% state 2 0.30 6% 20% state 3 0.10 9% 18% state 4 0.25 15% −4% (Each of parts a-d is worth 2 pts.; part e is worth 3 pts.) a. What are the expected returns on securities A and B? b. What is the standard deviation of the returns for each of the securities? c. Consider a portfolio consisting of 60% investment in security A and 40% in security B. According to the forecasted returns, what will be the portfolio’s return if the "state 1" economy emerges? d. Continuing with the same portfolio, what is the expected return on a portfolio consisting of 60% investment

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 04:40
Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answers: 3
question
Business, 22.06.2019 20:00
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.
Answers: 3
question
Business, 22.06.2019 21:40
Penny poodle wanted to know which dog obedience training program was more effective: puppy pride, the approach she has been using for any years, or doggie do-right, a new approach. penny convinced 50 human companions of untrained dogs to participate in her study. the dogs and their humans were randomly assigned to complete the puppy pride or doggie do-right course. at the end of the training programs, all of the dogs were scored on their level of obedience on a standardized dog obedience checklist (scores could range from 10 to 100). the design of this study is:
Answers: 2
question
Business, 22.06.2019 23:20
Nnette henri is paid an hourly wage of $8.90 for a 32-hour workweek of 4 days, 8 hours daily. for any work on the fifth day and on saturdays, she is paid one and one-half times her regular hourly rate. during a certain week, in addition to her regular 32 hours, henri worked 6 hours on the fifth day and 5 hours on saturday. for this workweek, henri’s total earnings are:
Answers: 1
You know the right answer?
The following represents the probability distribution of future returns for stock A and stock B. Sta...
Questions
question
Mathematics, 03.07.2019 22:10
question
Mathematics, 03.07.2019 22:10