stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) AWN 1 2 3 4 5 Stock A 0.11 0.04 0.13 -0.04 0.08 Stock B 0.05 0.03 0.05 0.01 -0.01 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.42, what is the expected return and standard deviation of a portfolio of 51% stock A and 49% stock B?
Answers
Expected returns refer to the anticipated profits or gains that an investor can expect to receive from an investment, taking into account the probability of different possible outcomes.
a. To find the expected return of each stock, we need to calculate the average of their returns:
Stock A: (0.11 + 0.04 + 0.13 - 0.04 + 0.08)/5 = 0.064 or 6.4%
Stock B: (0.05 + 0.03 + 0.05 + 0.01 - 0.01)/5 = 0.026 or 2.6%
Therefore, the expected return of Stock A is 6.4% and the expected return of Stock B is 2.6%.
b. To find the standard deviation of each stock, we can use the following formula:
s = sqrt[ Σ(xi - x)^2 / (n - 1) ]
where s is the standard deviation, xi is each return value, x is the mean of the returns, and n is the total number of returns.
For Stock A:
s = sqrt[ ((0.11 - 0.064)^2 + (0.04 - 0.064)^2 + (0.13 - 0.064)^2 + (-0.04 - 0.064)^2 + (0.08 - 0.064)^2) / (5 - 1) ]
s = sqrt[ 0.003616 ] = 0.06 or 6%
For Stock B:
s = sqrt[ ((0.05 - 0.026)^2 + (0.03 - 0.026)^2 + (0.05 - 0.026)^2 + (0.01 - 0.026)^2 + (-0.01 - 0.026)^2) / (5 - 1) ]
s = sqrt[ 0.000634 ] = 0.025 or 2.5%
Therefore, the standard deviation of Stock A is 6% and the standard deviation of Stock B is 2.5%.
c. To find the expected return and standard deviation of a portfolio consisting of 51% Stock A and 49% Stock B, we can use the following formulas:
Expected return of the portfolio = wA * RA + wB * RB
where wA and wB are the weights of Stock A and Stock B in the portfolio, and RA and RB are the expected returns of Stock A and Stock B.
Standard deviation of the portfolio = sqrt[ wA^2 * sA^2 + wB^2 * sB^2 + 2wAwB*ρ(A,B)sAsB ]
where sA and sB are the standard deviations of Stock A and Stock B, and ρ(A,B) is the correlation coefficient between Stock A and Stock B.
Plugging in the values, we get:
Expected return of the portfolio = 0.51 * 0.064 + 0.49 * 0.026 = 0.046 or 4.6%
Standard deviation of the portfolio = sqrt[ (0.51^2 * 0.06^2) + (0.49^2 * 0.025^2) + (2 * 0.51 * 0.49 * 0.42 * 0.06 * 0.025) ] = 0.037 or 3.7%
Therefore, the expected return of the portfolio is 4.6% and the standard deviation of the portfolio is 3.7%.
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Related Questions
Nico likes to take 15-minute breaks to play a game on his phone while he is studying. Sometimes, his breaks goes past 15 minutes because he loses track of time. What should he do to study more effectively?
Choose a game that has shorter levels.
Put his phone away even during study breaks.
Take fewer breaks but for 30 minutes.
Text a friend instead of playing games during study breaks.
Answers
Answer:
I think he should text a friend instead of playing games so his friend can help him with studies too.
Explanation:
This is just based on my opinion. Hope it helps though
Answer: B - Put his phone away even during study breaks.
Explanation:
I took the test and I got it right.
purchased grooming equipment for $12,700
Answers
Answer:
who spends that much-
Explanation:
okay good job on the server Andrew and it they said
The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the possible result of an increase in the government purchases of $
Answers
Answer:
$10 billion
Explanation:
You can find the spending multiplier by 1/MPS+MPI but since only MPS is given, 1/.2 = 5
We can use this to find how much the government injects into the economy to boost is 50 billion.
50 / 5 = $10 billion
The market worth of all the finished goods and services that nations produce and sell in a certain time period is measured in dollars by their gross domestic product (GDP). Hence increase in the government purchases of $ 10Billion.
What is GDP ?This measurement is frequently reviewed before being regarded as a valid indicator due to its subjective and complicated character.
The vocabulary of economists is extensive. The term "GDP" (gross domestic product) is one of the most popular. It is frequently quoted in newspapers, on television news, in government reports, central bank reports, and corporate reports.
The USA is by far the largest economy in our ranking for 2021, with a GDP of $23.0 trillion dollars. China, with a GDP of 17.7 trillion dollars, is in second place after it.
find the spending multiplier by 1/MPS+MPI but since only MPS is given, 1/.2 = 5
We can use this to find how much the government injects into the economy to boost is 50 billion.
50 / 5 = $10 billion
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if all of the government’s debt were internal, would financing that debt make the nation poorer?
Answers
if all of the government’s debt were internal, would financing that debt makes the nation poorer is a false statement.
What is debt?Debt may be defined as the sum that the borrower owes the bank. A debt is an amount of money that has been received for a specified time frame and must be repaid, plus interest.
External existing debt results in equalization; the process does not make a country poorer. The debt will in time need to be equalized as some point of time in time. The debtor's creditworthiness affects both the debt's size and its acceptance.
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Suppose Americans began purchasing real assets in Europe. How would this impact the foreign exchange market for the euro and the dollar price of the euro?
Demand for euro / Dollar price of euro
Decrease / Increase
Increase / Decrease
Increase / Increase
Decrease / Decrease
Decrease / Not Change
Answers
The correct answer is "Increase / Increase." If Americans began purchasing real assets in Europe, there would be an increase in demand for the euro, likely result in the increase in the very dollar price of the euro.
When Americans purchase real assets in Europe, they need to exchange their dollars for euros to make the purchase. This increase in demand for euros will cause the exchange rate to rise as there will be more buyers than sellers of euros, increasing the price of the euro in dollars.
This scenario assumes that all other factors affecting the exchange rate remain constant, which is not always the case in the real world. There are many factors that can affect the exchange rate, including interest rates, inflation rates, political events, and economic performance, among others.
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Which of the following is a goal of the FBLA-PBL?
A. Requiring all members to maintain straight A's
B. Facilitating the transition from school to work
C. Serving the needs of businesses above students
D. Discouraging school loyalty and scholarship
Answers
Answer:
b
Explanation:
Answer:
it's B facilitating the transition from school to work
Explanation:
just took the quiz
If the population of a country is 1,000,000 people, its labor force consists of 500,000, and 40,000 people are unemployed, the unemployment rate is:
Answers
Answer:
8.0 percent
Explanation:
To find the unemployment rate you:
Divide the number of people unemployed by the number of people in labor force (Employed and Unemployed)Then, multiply the number by 100Hope this Helps
an individual who stays working at a job that they hate because they need things like the paycheck or healthcare it brings is demonstrating what type of committment?
Answers
Normative commitment refers to how strongly employees believe they should remain with their company. Employees who are normatively committed believe they should stay with their companies. Affective commitment occurs when an employee wishes to be committed to a specific goal.
For example, if an employee has a high level of affective commitment to the organization, they have a pleasant relationship with it and are more likely to stay. Affective commitment occurs when an employee wishes to be committed to a specific goal. For example, if an employee has a high level of affective commitment to the organization, they have a pleasant relationship with it and are more likely to stay.
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define sale trading
Answers
Answer:
A trade sale is the sale of a company, or part of a company, to another business that will carry on the company's trade
Franklin corporation issues $97,000, 8%, 5-year bonds on January 1, for $101,370. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is
Answers
Answer:
$3,006
Explanation:
Bond issue = $97,000
Interest rate = 8%
Bond value sold = $101,370
Time period 5 years
N.B The premium will have to be to be discounted from the interest expense because Franklin corporation sold the bond at a value higher than the face value i.e premium value.
Therefore;
Coupon = $97,000 × 8% × 1/2
= $3,880
Amortization of bond premium = ($101,370 - $97,000) /5 years period
= $4,370/5
= $874
Total interest expense
= $3,880 - $874
= $3,006
how much do t-mobile customers pay in taxes and fees on top of their magenta max plan every month?
Answers
Taxes and fees make up approximately 3–12% of the monthly regulatory programmes (RPF) and telco recovery fee (TRF) total of $1.40 ($0.12 for RPF & $1.28 for TRF) per data only line.
Taxes are compulsory payments made by a government organization, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools.
Taxes are borne by whoever bears the cost of the tax in economics, whether this is the entity being taxed, such as a business, or the final users of the items produced by the business. Taxes should be taken into consideration from an accounting standpoint, including payroll taxes, federal and state income taxes, and sales taxes.
Governments must collect mandated contributions in the form of taxes.
In the United States, federal income taxes are collected by the Internal Revenue Service (IRS).
There are numerous types of taxes, and the majority are assessed as percentages.
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Question 1 (10 points) 1. Create one well-stated customer related goal that would be relevant for Chatters Hair Salon. (doublecheck: Is it SMART?) 2. You are an advisor to the manager responsible for meeting this goal and they need a recommendation on how to keep track of the progress toward the goal. Provide advice that is relevant to this goal and this company.
Answers
1. The goal is relevant for the salon and is SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
SMART evaluation:
Specific: The goal specifies increasing customer satisfaction through improving the overall salon experience, focusing on the customer's perception and satisfaction.
Measurable: Customer satisfaction can be measured through surveys, feedback forms, ratings, and reviews, allowing the salon to track improvements.
Achievable: Improving the salon experience is achievable by implementing customer-centric strategies, training staff, enhancing facilities, and optimizing service processes.
Relevant: Customer satisfaction is a key factor in the success of any service-oriented business, making it highly relevant to Chatters Hair Salon.
Time-bound: The goal does not specify a specific time frame, so it would be beneficial to set a deadline or target, such as increasing customer satisfaction by a certain percentage within six months or a year.
2. Recommendation: Implement customer feedback collection, monitor KPIs, provide staff training, and initiate improvement initiatives to track progress toward the goal.
Regularly collect customer feedback: Use customer surveys, feedback forms, and online reviews to gather insights into customer satisfaction levels and identify areas for improvement.
Monitor and analyze feedback: Assign a staff member or team responsible for collecting, analyzing, and reporting customer feedback to identify trends, common issues, and areas of excellence.
Set key performance indicators (KPIs): Establish measurable KPIs related to customer satisfaction, such as customer ratings, repeat business percentage, or positive online reviews, and track these metrics regularly.
Conduct regular staff training: Provide ongoing training sessions for salon employees to enhance their skills, knowledge, and customer service abilities.
Implement improvement initiatives: Based on customer feedback and analysis, develop action plans to address any identified areas for improvement and track the progress of these initiatives over time.
By following these recommendations, Chatters Hair Salon can effectively track progress toward their customer satisfaction goal and make data-driven decisions to continually enhance the salon experience for their customers.
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Question 2 (1 point)
Huda wants to buy soda. A 12-pack costs $9.50. She knows that with the local sales
tax of $2.00, the total should be $11.50. However, when she gets to the checkout,
the total is now $13.00. Which type of tax is Huda MOST likely paying that would
explain the extra $1.50?
estate
excise
inheritance
O income
Question 3 (1 point)
Answers
Answer:
$2:00,o income $ 1:50 huda soda most type that tax 3)1 point )
Julie works in the production department Julie's wages are an example of _______ expenses for the production department O direct indirect
Answers
Julie works in the production department, and her wages are an example of DIRECT expenses for the production department.
Direct expenses are those expenses that are incurred exclusively for the production of a specific product or service, which implies that they can be directly assigned to a product or service. Wages, salaries, and bonuses of workers engaged in the production process are examples of direct expenses. Julie's wages are an example of direct expenses for the production department.
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name four commercial services which are useful to a manufacturer
Answers
for the pizza seller whose marginal, average variable, and average total cost curves are shown in the accompanying diagram, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $0.50 per slice?
Answers
Based on the prize of the pizza and the profit maximizing level, the profit at this point would be $550.
What would be the profit?First find the profit maximizing point which is:
Price = Marginal cost
At a price and marginal cost of $2.50, the quantity sold is 550 slices.
The profit is therefore:
= (price x quantity) - Average cost x Quantity
= (2.50 x 550) - (1.50 x 550)
= $550
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The issue of where important decisions are made in an organization, either by upper management or at lower levels of the firm, is one of
a. centralization.
b. formalization.
c. accession.
d. policy capturing.
Answers
Option A. Centralization refers to the degree to which decision-making authority is concentrated in the hands of upper management in an organization.
In a highly centralized organization, important decisions are made by upper management, while in a decentralized organization, important decisions are made at lower levels of the firm.
The issue of where important decisions are made is a fundamental organizational design question. The choice between centralization and decentralization depends on a variety of factors, including the size and complexity of the organization, the nature of the decisions that need to be made, and the preferences of top management.
Formalization refers to the degree to which rules, procedures, and processes are standardized in an organization, while accession refers to the process of gaining entrance to an organization. Policy capturing refers to the process of determining which factors have the greatest impact on decision-making in an organization. None of these concepts are directly related to the issue of where important decisions are made in an organization.
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write short notes by Napier bone
Answers
Answer:
Napier's bones is a manually-operated calculating device created by John Napier of Merchiston, Scotland for the calculation of products and quotients of numbers. The method was based on lattice multiplication, and also called 'rabdology', a word invented by Napier. Napier published his version in 1617.
The benefit of mutual funds is that
Answers
Answer:
Mutual funds are the most popular investment choice in the U.S. Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing.
Explanation:
(Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.) not in question but just in case u need it
Answer:
Explanation:
Mutual funds are the most popular investment choice in the U.S. Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing
(Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.) not in question but just in case u need it
Suzette opened a CD 10 yrs ago at an int
Answers
The Rule of 72 is a straightforward formula for calculating how many years, at a specific interest rate, it would take for an investment to double in value. Option A is correct.
After to rule 70, if her investment doubled, she would have paid?A cd with an interest rate of 8.2% compounded semiannually was opened by Suzette ten years ago. When did she have half as much money as she does now, if the rule of 72 was applied,
According to the Rule of 72, it would take Suzette's investment about 72/8.44 = 8.53 years to double in value. Suzette would consequently have double the amount of money she initially put in after 8.53 years. The interest rate in Suzette's case is 8.2% compounded semiannually, making the actual annual interest rate 8.44%.
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Tell me why you would use a local bank or an online bank.
Answers
Islanders are getting tired of fish and are looking for alternatives to provide protein to their diet. Elizabeth and Matty decide to work together to build traps to catch the wild pig that are on the island.
Create a simple supply and demand curve that would show the shift in demand
Answers
As there was a decrease in demand for fish among the islanders, Elizabeth and Matty decide to work together to build traps to catch the wild pig that are on the island. Hence the demand curve of fish declined and the supply curve of pigs will rise.
How do supply and demand curves work?The demand curve illustrates how much of a certain good or service customers will be able and willing to purchase at each price over a specific period of time. The supply curve shows how much inventory retailers plan to put up for sale at various prices at the same time. Supply and demand serve as a microeconomic model for determining pricing in a market.
Supply and demand serve as a microeconomic model for determining pricing in a market. The demand curve for products and services can change depending on a number of factors, including changes in population, income, the cost of complementary or substitutive goods, and expectations for future conditions and prices. As a result, a different amount may be demanded at a particular price.
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Morning light does not enter the swamp. Even the sunrise is dark. Still, time progresses, night into day
A picture of bayou country is deceiving Slow streams converge under mud to make the appearance of land that is actually water. One net of moss hangs from one hundred trees. Lightning strikes the
same stump many times.
People pass the swamp's fringes in trains, on tracks that cling to the last solid ground. Out of their windows are landscapes that take the earth's colors to every periphery, Bright orange sunsets
surround people like sky on an airplane. On gray foggy mornings they ride through a dream that has no beginning or end. But time has its limits, these people know. They are expected places--Memphis
by midnight, New Orleans by dawn
Deep in the swamp, animals keep the only appointments Birds gather at high places in trees. Raccoons make their last noisy passes for food across someone's back porch before he awakes. Fish all
around splash up, although they cannot see the morning coming to clean the picture of day like clothes bleaching in a galvanized tub from dark gray to light gray
Joan looked out from the porch to the swamp she had known all her life. Ahead of her in the veiled light were the outlines of many trees. Below and around her were the crisp sounds of nature
awakening Cupped in both hands, perched on her knees was a warm mug of coffee.
Which of the following can the reader infer from the passage above?
O Travelers sleep throughout the journey.
O The ride is for airplane passengers to see the sky.
O Travelers lose their sense of the outside world.
Answers
Answer:
Travelers lose their sense of the outside world.
Explanation:
Study Island
Which of the following products is likely to be assembled on a repetitive process line?
a) automobiles
b) personal computers
c) dishwashers
d) television sets
e) all of the above
Answers
The correct answer is e) all of the above. All of the listed products (automobiles, personal computers, dishwashers, and television sets) are likely to be assembled on a repetitive process line.
A repetitive process line is a manufacturing approach that involves a sequential assembly of products using standardized and repetitive tasks. It is commonly used for products that have consistent design and require high volume production. The assembly process involves the sequential movement of products along an assembly line, with each worker or workstation performing a specific task in the overall assembly process. This approach allows for efficient and consistent production of large quantities of products with minimal variation. Therefore, all the listed products can be efficiently assembled using a repetitive process line.
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Fill the Blank ? if a residual is negative, then that data point lies _________________ the regression line.
Answers
If a residual is negative, then that data point lies below the regression line.
In linear regression, residuals are the differences between the actual values and the predicted values of the response variable. A residual can be either positive or negative, depending on whether the actual value is greater or smaller than the predicted value. If a residual is negative, then the actual value is below the regression line, and if it is positive, then the actual value is above the regression line.
A negative residual indicates that the model underestimates the actual value, which means that the data point lies below the regression line. Understanding residuals is essential to assess the accuracy of the regression model and identify any outliers or influential data points that may affect the model's performance.
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What criteria cannot be used to create a custom segment?.
Answers
Answer:
When a report is based on data from a large number of sessions you may see the following notice at the top of the report This report is based on sessions.You can adjust the sampling.
Explanation:
hope this helps
Which of the following groups of companies includes examples of merchandising businesses?
a. GameStop, Best Buy, Gap Inc.
b. GameStop, Sony, Dell
c. Gap Inc., Amazon, Nike Inc.
d. Delta Air Lines, Marriott, Gap Inc.
Answers
GameStop, Best Buy, and Gap Inc. groups of companies include examples of merchandising businesses. Thus, option A is correct.
What is a business?An innovative company or group that engages in professional roles is referred to as a business. They could be industrial, recreational, or something else.
Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause. Merchandising business is usually the one that includes various business like games top Best Buy. They provide various means to provide the business.
Therefore, option A is the correct option.
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The Paris Climate Accord relies on strict, enforceable national limits on carbon dioxide emissions to address the environmental problem of climate change.
false true
Answers
To address the environmental issue of climate change, the Paris Climate Accord depends on strong, enforceable national limitations on carbon dioxide emissions. This statement is true.
The Paris Climate Accord, also known as the Paris Agreement, is an international treaty that aims to limit the global temperature increase to well below 2 degrees Celsius above pre-industrial levels, with a target of 1.5 degrees Celsius.
The agreement relies on strict, enforceable national limits on carbon dioxide emissions as a key mechanism to achieve this goal. Each participating country is required to submit a nationally determined contribution (NDC), which outlines its goals for reducing greenhouse gas emissions.
The NDCs are updated every five years and are expected to become more ambitious over time. The Paris Agreement also includes provisions for transparency and accountability, including a system for tracking progress and reporting on emissions.
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Rolando, a senior employee, has been asked to monitor the activities of some new employees and report to her if he finds them engaged in activities that are not work related. He finds them spending far too much time on social networking sites. However, instead of reporting this, he advises the new employees to refrain from using those sites in the future. Moreover, he tells Alexa that they were doing their work effectively. In this scenario, Rolando has engaged in
- encoding.
- encrypting.
- social loafing.
- bootlegging.
- filtering.
Answers
In this scenario, Rolando has engaged in filtering as he tells Alexa that employees were doing their work effectively. The right answer is e.
Filtering is when information is distorted or withheld in order to control a person's reactions. Filtering inhibits employees in a company from obtaining a full view of the situation. Delivering a message in various methods and seeking information from many sources can both increase your chances of delivering and receiving effective messages.
This will lessen the impact of any single person filtering the message. Filtering might result in misunderstandings in business. Each hearer renders the message in his or her own words, producing a unique interpretation of what was stated.
The correct answer is option e.
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True/False? Mohammed cracked the glass on his smartphone. He had hoped it was just the screen protector, but he saw that he really could not do much with his phone in that condition. Mohammed knew he'd need to get a new one; he had just begun the consumer purchase decision process
Answers
It is true that Mohammed cracked glass on his smartphone.
What is a smartphone?A smartphone is a type of mobile device that combines the functionality of a computer with the ability to make phone calls. A smartphone typically has a touch screen display, a camera, internet connectivity, and the ability to run various applications (or "apps"). Many of these apps are designed to perform specific tasks, such as send and receive email, play games, navigate with GPS, and more. Additionally, many smartphones are equipped with sensors such as accelerometers and gyroscopes, which allow for unique user inputs and experiences. The smartphone has become an essential tool for many people, offering them a way to stay connected and productive both at work and in their personal lives.
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