Business, 07.12.2019 01:31 anrs14

An investor wants to determine the safest way to structure a portfolio from several investments. investment a produces anaverage annual return of 14% with a variance of 0025. investment b produces an average rate of return of 9% with avariance of 0.015. investment c produces an average rate of return of 8% with a variance of 0.010. investments a and bhave a covariance of 28, and investmentsa and c have a covariance of —0.006. investments b and c have acovariance of 0.00125.a. suppose the investor wants to achieve at least a 12% return. what is the least risky way of achieving this goal? b. suppose the investor regards risk minimization as being five times more important than maximizing return. whatportfolio would be most appropriate for the investor.)

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 19:00

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is

Answers: 2

Answer

Business, 22.06.2019 20:00

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.

Answers: 3

Answer

Business, 22.06.2019 21:00

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be:

Answers: 3

Answer

Business, 23.06.2019 01:20

Boxes of honey nut oatmeal are produced to contain 16.0 ounces, with a standard deviation of 0.20 ounce. for a sample size of 49, the 3-sigma -x chart control limits areupper control limit (ucl-x) = ounceslower control limit =(lcl=max

Answers: 1

Answer

You know the right answer?

An investor wants to determine the safest way to structure a portfolio from several investments. inv...

Questions