subject
Business, 01.06.2021 19:00 zoewilliamss26

Suppose that 16 risky assets have been identified whose rates of return satisfy ri=±α+f+ϵi where α>0. Note that 8 of the risky assets use the + sign in front of α in the equation, while the other 8 use the − sign. The factor f is common to all 16 risky assets. The factor f has a mean of 10 and standard deviation equal to 3–√. Each ϵi represents a specific error, in the sense that each has zero mean, zero covariance with f, and zero covariance with the other risky assets. Each ϵi has a standard deviation equal to 4. Now assume that a portfolio consists of all of these stocks, with equal weight given to each one of them. What is the expected rate of return of the portfolio?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 19:00
Ashare stock is a small piece of ownership in a company ture or false
Answers: 2
question
Business, 22.06.2019 00:00
Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)
Answers: 2
question
Business, 22.06.2019 01:00
Need with my trade theory homework. i doubt what i wrote was right.consider a monopolistically competitive market for soft drinks in which n symmetric firms face the following demand function: q=s(1/n-b(p-(p with the straight line on which implies the marginal revenue functionmr=p-(q/sb)finally, suppose firms face the total cost functiontc=900,000+100qsuppose the market size, s, is 27,000,000, and the elasticity parameter b is 0.003.diagram the price and the average total cost in the market as a function of the number of firms. what are the equations for each curve, and why does each curve slope up or down? label the equilibrium number of firms and the equilibrium price in the diagram. why is this the equilibrium?
Answers: 1
question
Business, 22.06.2019 05:30
Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?
Answers: 2
You know the right answer?
Suppose that 16 risky assets have been identified whose rates of return satisfy ri=±α+f+ϵi where α&g...
Questions
question
Mathematics, 22.10.2020 20:01
question
Mathematics, 22.10.2020 20:01
question
Biology, 22.10.2020 20:01
question
Mathematics, 22.10.2020 20:01
Questions on the website: 13722363