subject
Business, 14.06.2021 15:50 jasminecoronetti44

Suppose there are two stocks that are uncorrelated. Each of these has variance of 1, and there are expected returns are r1 and r2, respectively. The risk-free rate is rf . Find the portfolio of weights w1 and w2 for the Markowitz (market) portfolio. Show that for some value of rf there is no Markowitz portfolio.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 17:30
Salvador county issued $25 million of 5% demand bonds for construction of a county maintenance building. the county has no take-out agreement related to the bonds. it estimates that 20% of the bonds would be demanded (called) by the buyers if interest rates increased at least 1%. at year-end rates on comparable debt were 7%. how should these demand bonds be reported in the government-wide financial statements at year-end? a) $25 million in the long-term liability section of the governmental activities column. b) $5 million in the current liability section of the governmental activities column and $20 million in the long-term liabilities section of the governmental activities column. c) $5 million in the governmental activities column and $20 million would be reported in the schedule of changes in long-term debt obligations. d) $25 million in the current liability section of the governmental activities column
Answers: 1
question
Business, 21.06.2019 20:00
Answer the following questions using the data given below. annual percent return on mutual funds (n = 17) last year (x) this year (y) 11.9 15.4 19.5 26.7 11.2 18.2 14.1 16.7 14.2 13.2 5.2 16.4 20.7 21.1 11.3 12.0 –1.1 12.1 3.9 7.4 12.9 11.5 12.4 23.0 12.5 12.7 2.7 15.1 8.8 18.7 7.2 9.9 5.9 18.9
Answers: 3
question
Business, 22.06.2019 02:50
Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of
Answers: 3
question
Business, 22.06.2019 11:00
Which ranks these careers that employers are most likely to hire from the least to the greatest?
Answers: 2
You know the right answer?
Suppose there are two stocks that are uncorrelated. Each of these has variance of 1, and there are e...
Questions
question
Mathematics, 25.05.2021 23:20
question
Mathematics, 25.05.2021 23:20
question
Chemistry, 25.05.2021 23:20
question
History, 25.05.2021 23:20
question
Social Studies, 25.05.2021 23:20
question
Mathematics, 25.05.2021 23:20