Answer:
Variance of the portfolio = 1.96% for Correlation 1.0
Variance of the portfolio = 1.48% for Correlation 0.5
Variance of the portfolio = 1.00% for Correlation 0.0
Explanation:
Data Given:
Investment = 60% in stock I and the balance in ( 40% in stock J) = weights
Standard deviation on returns on I = 10%
Standard deviation on returns on J = 20%
Required:
Variance of portfolio returns.
Assumptions:
1) The correlation between returns is 1.0
2) The correlation is 0.5
3) The correlation is 0.0
Solution:σLet's suppose,
Weight of Stock I = w1
Weight of the Stock J = w2
so,
w1 = 60%
w2 = 40%
C = Correlation
SD = Standard deviation
SD1 = SD of stock I
SD2 = SD of stock J
So, the formula for the variance of the portfolio will be:
Variance of the portfolio = [tex]w1^{2}[/tex] . [tex]SD1^{2}[/tex] + [tex]w2^{2}[/tex] . [tex]SD2^{2}[/tex] + 2(w1.w2.C.SD1.SD2)
Plugging in the values for Assumption 1, where C = 1.0
Variance of the portfolio = [tex]0.60^{2}[/tex] . [tex]0.10^{2}[/tex] + [tex]0.40^{2}[/tex].[tex]0.20^{2}[/tex] + 2(0.60 x 0.40 x 1.0 x 0.10 x 0.20)
Hence,
Variance of the portfolio = 0.0196 x100 to get it in percentage
Variance of the portfolio = 1.96%
Similarly for the assumption 2, where C = 0.5
Variance of the Portfolio = [tex]w1^{2}[/tex] . [tex]SD1^{2}[/tex] + [tex]w2^{2}[/tex] . [tex]SD2^{2}[/tex] + 2(w1.w2.C.SD1.SD2)
Variance of the Portfolio = [tex]0.60^{2}[/tex] . [tex]0.10^{2}[/tex] + [tex]0.40^{2}[/tex].[tex]0.20^{2}[/tex] + 2(0.60 x 0.40 x 0.5 x 0.10 x 0.20)
Variance of the Portfolio = 0.0148 x 100
Variance of the Portfolio = 1.48%
Similarly, for assumption 3, where C = 0.0
Variance of the Portfolio = [tex]w1^{2}[/tex] . [tex]SD1^{2}[/tex] + [tex]w2^{2}[/tex] . [tex]SD2^{2}[/tex] + 2(w1.w2.C.SD1.SD2)
Variance of the Portfolio = [tex]0.60^{2}[/tex] . [tex]0.10^{2}[/tex] + [tex]0.40^{2}[/tex].[tex]0.20^{2}[/tex] + 2(0.60 x 0.40 x 0.0 x 0.10 x 0.20)
Variance of the Portfolio = 0.01 x 100
Variance of the Portfolio = 1%
The United States is an example of a __________ economy?
a)traditional
b)command
c)market
d)private
Answer:
C. Market
Explanation:
I majored in Health
Match the drawbacks of the scientific management theory to their respective outcomes in the workplace.
rigidity
lack of autonomy
mechanical nature
lack of feedback
Answer:
Explanation:
Plato Users
Production methods are standardized with no opportunity for individual initiative is known as lack of autonomy.
What are Production methods?A production process is a way to use economic resources, such as labor, expensive machinery, or land, to create goods and services for customers.
The manufacturing process typically addresses how to effectively and productively produce goods for sale so that clients can receive them fast without compromising the product's quality.
Depending on their manufacturing objectives, production volumes, and technology tools or software systems, organizations can use a wide range of production methods.
Making broad-based production decisions that have an impact on the productivity levels of product development and sales is a crucial component of the job of a manufacturing manager. Choosing the best production method frequently depends on the kind of technology you have access to.
For instance, without the right technology to track, categorize, or manufacture these products appropriately, you might not be able to adhere to a clear mass production structure if you receive a lot of orders for the same product.
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Create a flow chart that shows the hierarchy of the US Banking Systems.
Answer:
NOOB
Explanation:
The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400.How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates
Answer:
the total manufacturing overhead allocated is 610
Explanation:
The computation of the manufacturing overhead allocated is as follows;
= Assembly department + sandling department
= 50 × 11 + 15 × 4
= 550 + 60
= 610
Hence, the total manufacturing overhead allocated is 610
We simply applied the above formula so that the total manufacturing allocated to Job 603 could come
If you are the Head of H.R Department in Ali Manufacture Company and you have hire the totally fresh candidates in your company so what kind of training you will suggested; on the job training or off the job training
Answer:
on the job training
Explanation:
On the job training focuses on a more practical training, i.e. training new employees through real life situations. While off the job training is theoretical training that can be carried out somewhere else. The advantage of on the job training is that new employees encounter the same type of situations that they will face on their jobs.
Does the Statute of Frauds, a legal principle from the 1600s, still make sense in today's commercial world
Answer:
Yes. The Statute of Frauds still makes sense in today's commercial world.
Explanation:
The statute of frauds as a legal concept requires that certain contracts must be put in writing, especially contracts involving the sale of land, goods worth more than $500, and contracts lasting more than one year. The statute acts as a defense to a breach of contract claim. In most states, a statute of frauds does not make a contract void but makes certain contracts voidable. This means that the contract remains valid and enforceable until one of the parties chooses to void the contract.
Suppose Americans working in the textile industry decide to boycott goods made in the European Union. Explain how this boycott will affect each of the following: The supply of dollars The international value of the dollar
Answer: See explanation
Explanation:
The supply of dollars: The boycott by the Americans would result in the reduction in the supply of dollars on the international market. This is due to the fact that there will be less dollar going to the European Union.
The international value of the dollar: There'll be a depreciation in the value of the dollar. A reduction in demand would lead to decline in it's value.
Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending share price of $38. Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
25.6%
Explanation:
Computation for the percentage total return
Using this formula
Percentage total return=[(Ending share price-Initial price)+Dividend]/Initial price
Let plug in the formula
Percentage total return=[($38-$50)+$.80)/$50
Percentage total return=$12+$.80/$50
Percentage total return=$12.8/$50
Percentage total return=0.256*100
Percentage total return=25.6%
Therefore the percentage total return will be 25.6%
The amount of interpersonal space (space between people while interacting) that is acceptable varies by culture. This activity is important because interpersonal space is one of the key cultural areas to understand in business if you want to bridge cross-cultural gaps. The goal of this exercise is to test your knowledge of the cultural area of interpersonal space.
Determine which of the following countries has Least Social Distance and Most Social Distance.
a. China
b. UK
c. Saudia Arabia
d. India
e. USA
Answer:
Note: The full question is attached as picture below
Below is in order, according to the amount of social distance (interpersonal space in a professional interaction) that would likely be expected during a business transaction in that particular country.
1 = Least Social Distance: 5 = Most Social Distance:
1 - USA
2 - UK
3 - INDIA
4 - CHINA
5- SAUDI ARABIA
How would you address mental challenges and age-related issues with exercising?
Answer:
Explanation:
Having someone to exercise with you makes it more enjoyable. ... Make exercise a priority and set time aside during the day. ... Identify activities that they enjoy. ... Start slowly and advance the exercise program gradually. ... Set realistic expectations. ... Be supportive.Which assumption below best reflects a basic understanding economists have about the world? Group of answer choices The world has limited productive resources. There are limited wants. More output creates more wants. Output will always satisfy the needs of a society.
Answer:
The assumption which best reflects a basic understanding that economists have about the world is:
The world has limited productive resources.
Explanation:
This is the economic concept of scarcity. Scarcity is the concept of limited resources, which worries about the gap between societal resources and unlimited human wants. Economists try to explain that this situation of scarce resources requires the making of choices (decisions) that will ensure the efficient allocation of the resources to meet basic human needs and other increasing wants.
In one ancient civilization, hunters shared fresh meat with other individuals in a group without an explicit timeframe or agreement about who would do what in return. However, the favor would surely be returned by those in the tribe who could cook, take care of children, and provide
shelter. What type of economy does this MOST closely describe?
A. Socialist economy
B. gift economy
С. market economy
D. planned economy
Answer:
B. Gift economy
Explanation:
Correct Answer: gift economy
When the Sales Tax feature is enabled in QuickBooks Online, where must you record sales tax payments?
Answer:
Sales Tax Center
Explanation:
QuickBooks Online is an online service for accounting software package that is developed as well as marketed by Intuit. Its products are mainly small or medium sized business and other accounting applications and cloud based version which accept management and payment of bills, business payments, payroll functions, etc.
In QuickBooks, we use the Pay sales tax window to create the sales tax payments. Intuit offers a new and advance version of sales tax feature in QuickBooks Online. We must record the sales tax payments in the sales tax center when the sales tax feature is enable in QuickBooks Online.
Watson's Computer Company expects to produce 2,250 computers. Watson's Computer Company also expects to use 13,000 parts and have 20 setups.The allocation rate for materials handling will be
Answer:
$4.00
Explanation:
Calculation for what The allocation rate for materials handling will be
Using this formula
Materials handling allocation rate=Material Handling/Expected parts to use
Let plug in the formula
Materials handling allocation rate=$52,000/13,000 parts
Materials handling allocation rate=$4.00
Therefore The allocation rate for materials handling will be $4.00
25 POINTS AND BRAINLIEST!! PLS HELP
What items should be included in signatures on business e-mail?
threads
e-mail address
name and title
company name
inspirational messages
phone and fax numbers
mailing address
Hey there!
The following should be the answers:
e-mail address
name and title
company name
phone and fax numbers
mailing address
Hope it helps and have an amazing day!!!
Answer:
yeah they right on OW
Explanation:
This is economics question
Answer:
I think "A & B are correct."
Explanation:
Risk*
. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important
Answer:
1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.
2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.
Explanation:
Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.
In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.
In the nation of Foxystan, a $500 decrease in consumer spending typically causes GDP to fall by $5000. The spending multiplier in Foxystan is equal to:
Answer:
Foxystan
The spending multiplier in Foxystan is equal to:
10 times.
Explanation:
a) Data and Calculations:
Decrease in consumer spending = $500
Decrease in GDP = $5,000
Spending multiplier in Foxystan is equal $5,000 : $500 = 10 times
The spending multiplier describes the ratio of change in consumer spending relative to the change in the GDP. In Foxystan, the ratio of the change is 10 times. This means that while consumer spending decreased by $500, it caused a 10 times decrease in the GDP.
1. Over the past year, a customer has surrendered, in whole or in part, three life insurance policies. If part of a money laundering operation, these transactions represent which stage
Answer:
It represents the Integration stage
Explanation:
Money laundering is an illegal chain of activities done by individuals or corporate bodies to change the status of money gotten through a criminal activity into legitimate money. This chain of activities starts with the Placement stage then transforms into the Layering stage, then ends when it is already integrated into the legitimate financial system through the Integration stage.
After the money launderer conceals the illegal money through bank deposits or purchasing a life insurance policy at the Placement stage, the launderer then proceeds to further break the money into smaller amounts to evade suspicion by numerous transactions and bank deposits at the Layering stage, which is then ended by partial or whole surrenders of life insurance policies to make it now legitimate money.
What should be the minimum amount of years you allow your retirement
investments to grow?
a. 10 years
b. 20 years
c. 30 years
d. 40 years
Answer:
a. 10 years
Explanation:
Investing for retirement is a long-term project. The earlier a person starts to invest, the better for them as they will enjoy the benefits of compounding.
Ideally, saving for retirement should start the moment one gets employed. This gives them ample time to save and accumulate money for use in retirement. There is no upper limit as to how many years one should save for retirement. However, one needs to save for at least ten years to have sufficient funds for retirement.
differentiate between a department with line responsibility and a department with staff responsibility
Answer:
While a department with line responsibility is directly involved in the daily activities and management of the business, a department with staff responsibility simply provides support for the line managers.
Explanation:
The line department consists of the chain of leaders whose positions in the organization are clearly differentiated from those of their subordinates. They make decisions and supervise the daily affairs of the business. Examples of these include; the department heads, the president, the production supervisors, etc.
A department with staff responsibility provides support for the department with line responsibility. Examples of personnel in the line department are the legal advisers and the human resource staff. The legal advisers provide support by advising the line managers on the lawful means to transact their business activities.
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.52 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely.
Required:
a. If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
b. What will the price be in 8 years?
Answer:
A. $40.66
B. $69.86
Explanation:
A. Calculation for what is the current price
Using this formula
Current price=Dividend per share(1+Expected constant rate)/ (Require return percentage-Expected constant rate)
Let plug in the formula
Current price=1.52(1+.07) / (.11-.07)
Current price=1.52(1.07) / (.11-.07)
Current price=1.6264/0.04
Current price=$40.66
Therefore the Current price will be $40.66
b. Calculation for What will the price be in 8 years
Using this formula
Price=Dividend per share(1+Expected constant rate)^Numbes of years/ (Require return percentage-Expected constant rate)
Price=1.52(1+.07)^9/ (.11-.07)
Price=1.52(1.07)^9/ (.11-.07)
Price=2.7945/0.04
Price=$69.86
Therefore What will the price be in 8 years is $69.86
ou've just taken on a new client, a small business owner, who was managing their books with spreadsheets. What's the recommended first step to begin working with this client in QuickBooks Online?
The options available are:
A. Ask them to sign up for QuickBooks Online on QuickBooks.com
B. To Create a QuickBooks Online for them and manually email them their Intuit ID and password
C. Add new client in QuickBooks Online Accountant
D. Add new client in QuickBooks Online
Answer:
Add new client in QuickBooks Online Accountant
Explanation:
In this situation, as the new client, the recommended first step to begin working with this client in QuickBooks Online is to add the client in QuickBooks Online Accountant.
This will assists you in getting their information and at the same time have direct access to the client's account and easily work on the client's bookkeeping.
Hence, in this case, the correct answer is "Add new client in QuickBooks Online Accountant."
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent
Answer:
$16,379.75
Explanation:
Calculation for the annual payments that should be made
Using financial calculator to find the PMT
FV = $100,000
Interest rate = 10%
N= 5 years
PMT?
Hence,
PMT = $16,379.75
Therefore the annual payments that should be made so that both forms of payment are equivalent will be $16,379.75
How companies can link their compensation and evaluations to organizational objectives?
Answer:
For a company’s compensation strategy to be effective, it must be linked to the overall business strategy. Because compensation accounts for 30-60% of business costs, it is essential for organizations to identify the drivers behind pay. For this reason, the foundational step of creating any solid compensation strategy is linking it to the business strategy.
Explanation:
Decision making is often a biased and flawed process. This activity is important because a person who can identify and be aware of their biases may be able to make better decisions for themselves and may be able to diagnose flawed decisions that affect their workplace. The goal of this exercise is to test your knowledge of the nine fundamental decision-making biases given below.
a. Availability Bias
b. Representativeness Bias
c. Sunk-Cost Bias
d. Anchoring and Adjustment Bias
e. Confirmation Bias
f. Overconfidence Bias
g. Hindsight Bias
h. Framing Bias
i. Escalation of Commitment Bias
Answer:
a. Availability bias ⇒ Cori
This bias refers to the mind's tendency to evaluate a topic based on the examples that they already know of and therefore come to their mind first. Cori thought of her weather at home first and related it to Australia.
b. Representativeness Bias ⇒ Trinity
This bias is one that people make when things are related. They assume that if it is the case for an event, related events should work the same as well.
c. Sunk-cost bias ⇒ Zion
This bias refers to the making of decisions based on sunk costs. Zion's transmission is a sunk cost but he used it as a basis to fix the brakes.
d. Anchoring and Adjustment bias ⇒ Nishka
This bias occurs when we look upon new information with a biased view as Nishka did when they looked at the prices of cheaper cars.
e. Confirmation bias ⇒ Declan
Confirmation bias is when we only listen to information that supports our view much like Declan here who disregarded information that criticized his car model.
f. Overconfidence bias ⇒ Milo
This bias results from having unfounded confidence in our ability to do something much like Milo here who believed he was good enough to invest as his broker who had to go through more intensive training.
g. Hindsight bias ⇒ Sai
Believing that we always knew something was going to happen after the thing happens.
h. Framing bias ⇒ Rosa
This bias occurs when decisions are made based on one aspect due to the decision being framed from that aspect.
i. Escalation of Commitment Bias ⇒ Amara
This bias occurs when we continue to follow a decision path even though that decision has proven to provide negative consequences.
Give three examples of possible age-based conflicts in the workplace
Brent has to complete a final group project and his group members aren't
doing their share of the work. Brent generally believes in being kind to others,
but at the last group meeting, he was so frustrated that he yelled at the group
and threatened to stop working on the project. Which value system is mainly
in question here?
A.ethics
B.law
C.business law
M.morality
Answer: M. Morality
Explanation:
Morality is the value system is mainly in question here. Hence, option D is correct.
What is Morality?Moral and just standards define what constitutes unacceptable behavior in society and what constitutes right and acceptable behavior.
A civilisation uses moral standards to decide what is reasonable, right, or acceptable. The majority of nations agree that murder is evil, while some grant an exemption for murder committed when waging a war to defend the nation or when acting in self-defense.
According to Louis Pojman, morality has five objectives: "keep society from disintegrating," "lessen human suffering," "promote human flourishing," "resolve conflicts of interest in just and orderly ways," and "give praise and blame, reward the good, and punish the guilty".
Thus, option D is correct.
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Farah and David decide to form a sports memorabilia retail partnership. They have known each other since business graduate school and have always worked well together on various projects. The business is doing well but cash flow is very tight. Farah takes several calls from vendors asking for payment. He believed David had been paying the bills. When he asks about this, David admits to embezzling from the partnership. What liability does Farah face as a result of the theft
Answer:
Farah faces a general partnership as a result of theft
Explanation:
General Partnership is simply a free association of two or more persons to carry on business for profit gains.
Partnership agreement is simply an agreement by two or more persons to do business together as a partnership in an oral or written form.
Based on the provided information, Farah faces a general partnership as a result of theft.
According to the question, we were to discuss about Farah and David who decide to form a sports memorabilia retail partnership and the liability that Farah faced.
As a result of this, we can see that she faced general partnership as a result of theft, general Partnership which is a free association of two or more party to share gain from a business,
Therefore, since David admits to embezzling from the partnership then it is a theft from partnership.
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which trends are reshaping
the business, microeconomic and
microeconomic environments and
Competitive arena?