You decide to invest in a portfolio consisting of 21 percent Stock X, 48 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Normal Boom Probability of State of Economy .84 .16 Return if Stat Stock X Stock Y 10.20% 3.60% 17.50% 25.50%
Q: Economics questions bartleby expert solve
A: Option D: This option is correctNet exports of goods and services increase in the following…
Q: D Question 25 Refer to the accompanying graph Price G 4 E Q F 8182 D₂ D₁ Quantity The market is…
A: The objective of the question is to understand the impact of a government subsidy on a market with a…
Q: None
A:
Q: FORCASTING using the data below can you answer the question: Month Sales Jan-16 747 Feb-16…
A: To forecast monthly sales for 2022 using the provided data, we can employ time series forecasting…
Q: None
A: The IS curve shows all combinations of income and the real interest rate and is negatively slopedA…
Q: Use the following information: TFC = $300, and Plabor = $20/hour. Fill in the blanks in the…
A: Labor (hours)TP…
Q: Draw and label a graph for aggregate economic activity over time, including all of the parts of the…
A: Here's a labeled graph for aggregate economic activity over time, including all parts of the…
Q: Suppose that the most popular car dealer in your area sells 25 percent of all vehicles.…
A: If all other car dealers sell either the same number of vehicles or fewer, it implies that they each…
Q: Aaron Platter Well, that's the strange thing. I've got total GDP at $7,200, as I said, and…
A: Understanding GDP:GDP (Gross Domestic Product) represents the total value of final goods and…
Q: 7. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume…
A:
Q: 4. (6 points) Suppose you want to open a food truck in Providence that sells fancy sandwiches to…
A: Fixed vs. Variable Costs for a Food TruckUnderstanding the difference between fixed costs and…
Q: Heloise and Abelard produce letters in a perfectly competitive industry. Heloise is much better at…
A: Let's tackle each problem:a. True. In a perfectly competitive market, each firm will produce up to…
Q: Suppose that the supply of credit cards is given by (1/201) X = q, the nominal interest rate is…
A: Detailed Explanation:To find the quantity of money supplied for the money market to be in…
Q: Question 4 (6 points): Hedge January 20th: Miller needs to buy wheat in late April. Currently, the…
A: Let's go through the detailed workings for each step in the hedge to better understand the…
Q: using the data below can you answer the question: Month Sales Jan-16 747 Feb-16…
A: Explaining the assessment of whether a simple exponential smoothing (SES) model works well with the…
Q: The accompanying table shows the price and yearly quantity sold of souvenir Tshirts in the town of…
A: The price and income elasticity of demand for souvenir T-shirts in Silver Lake are important factors…
Q: explain Borrowing constraint and resale contrarians with example?
A: Constraint on Borrowing:A borrowing constraint is a restriction placed on someone's capacity to take…
Q: 2. Because price searchers can set their prices, does this mean that their prices are unaffected by…
A: Price-Searcher Markets:In price-searcher markets, firms have some degree of control over setting…
Q: You've researched and found that most firms in the market currently experience costs such that TC =…
A: a. Plugging the market equilibrium quantity into the firm total cost function results in huge costs…
Q: The young expert Hand written solution is not allowed
A: DeflectionIn civil engineering, deflection refers to the movement of a structural element (like a…
Q: Describe in detail the costs of unemployment. Include a definition of Okun’s Law.
A: Significant financial costs associated with unemployment have an impact on both people and…
Q: do fast i will 10 upvotes.
A: Sure, let's break down the problem step by step: 1. **Given Parameters**: We are provided with…
Q: What is the equivalent annuity starting in year 1 and ending in year 5 for the following project…
A: Answer information:Annual worth = P[i(1+i)^n / (1+i)^n-1] Where,P = Present value = 1938I = interest…
Q: None
A: In any market, the interaction between demand and supply determines the equilibrium price and…
Q: 5. Find all stationary points of the following function. For each stationary point, determine if it…
A: Page 1: Page 2:
Q: Solution has been provided in step by step
A: Part (b): Temporary Positive Shock to Total Factor Productivity (TFP)1. Output: An increase in TFP…
Q: Emily and Celeste both work at the same company and earn $10,000 per month. Assume all income is…
A: To calculate the expected cost of this program, we need to consider the probability of each employee…
Q: Discuss the role of transport in facilitating global trade
A: The objective of this question is to understand the role of transport in facilitating global trade.…
Q: Which of the following statements about external costs is TRUE? A Economics uses the term "external…
A: Here's why the other options are incorrect:a) Incorrect: External costs can be significant and have…
Q: Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive.…
A: Here is the answer Economics, a discipline integral to understanding how societies utilize limited…
Q: The transactions demand for money will shift to the: Multiple Choice right when aggregate income…
A: The transactions demand for money refers to the amount of money people hold for everyday…
Q: MCQ question it is
A: Option a: This option is correct a) Demand-pull inflation in the late 1960sIt's true that…
Q: Question: Expansionary fiscal policy is characterized by: A) Increased government spending and/or…
A: Expansionary fiscal policy aims to stimulate economic growth and demand by increasing government…
Q: A negative value for the line item "Changes in official international reserves" in the balance of…
A: The objective of the question is to understand what a negative value for the line item 'Changes in…
Q: 4) HOTELLING LOCATIONS: MOVIE RATINGS Profit-seeking firms F1, F2, and F3 serve a market in which…
A:
Q: se the supply schedule below to answer the questions that follow. Supply of Flower Bouquets…
A: To find the quantity of bouquets supplied when the market price is $20, we need to look at the…
Q: Bare Trees United issued 13-year bonds at a coupon rate of 8.5 percent. The bonds make semiannual…
A:
Q: Draw an IS-LM model in general equilibrium. Show the effect of expansionary monetary policy in the…
A: In the IS-LM model in general equilibrium, the IS curve shows the equilibrium in the goods market,…
Q: The young and beautiful expert Hand written solution is not allowed
A: 4. Maximizing quantity is found where MC intersects D curvethis is the point 98,125 5.The total cost…
Q: Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow.…
A: Step 1:GERMX CO Asset Section of Balance SheetDecember 31AssetsCurrent assets Cash 18500Stock…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A:
Q: + Real GDP (Billion of 2000 dollars) Year 2002 $8,700 2003 8,875 2004 9,000 2005 9,280 6. Refer to…
A: The first part of the question is asking for the area that represents consumer surplus after the…
Q: 1 The demand curve for a certain product is given by p(q) = 581-q^2. The supply curve is given by…
A: The objective of the question is to find the producer surplus and consumer surplus at equilibrium…
Q: (a) U.S. (b) U.K. Interest rate Interest rate Supply 6% EA 4 Demand Quantity of loanable funds 4% 2…
A:
Q: As a result, firms reduce; increase reduce; remain the same accumulate; decrease reduce; decrease…
A: The scenario outlined in the text suggests that businesses typically cut production when inventories…
Q: The young expert Hand written solution is not allowed.
A: Step 1: We can calculate the velocity of circulation (V) , by using the equation of exchange :…
Q: Suppose Clomper's is a monopolst that manuractures and sels stampen, an extremely trendy shoe brand…
A: Ans. ) Given in the question, Clomper's is a monopolist that manufactures and sells stompers, an…
Q: USAA is considering adding a new runway and has 3 options for the runway surface: asphalt, concrete,…
A:
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: The maximum possible increase in the money supply resulting from your bank deposit can be determined…
Q: assume you are an average american driver. using the 2014 emission totals, how many pounds of nox…
A: The objective of the question is to calculate the amount of NOx emissions an average American driver…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 10 images
- You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.3 -0.03 Normal 0.5 0.08 Expansion 0.2 0.13 What is the expected return for the stock? What is the standard deviation of returns for the stock?An investment plan allows investors to deposit a minimum of £1,000 at the beginning of the term, which pays a fixed return rate of 5% per annum. Af- ter a year, investors have to deposit a minimum of £800 with an expected return rate of 3% per annum for the second year and a standard deviation of 2% per annum. a. Find the expected value of the total minimum amount earned after two years of investment. b. Find the standard deviation of the total minimum amount earned after two years of investment.53. The annual demand for Prizdol, a prescription drugmanufactured and marketed by the NuFeel Company,is normally distributed with mean 50,000 and standarddeviation 12,000. Assume that demand during each ofthe next 10 years is an independent random numberfrom this distribution. NuFeel needs to determine howlarge a Prizdol plant to build to maximize its expectedprofit over the next 10 years. If the company builds aplant that can produce x units of Prizdol per year, it willcost $16 for each of these x units. NuFeel will produceonly the amount demanded each year, and each unit ofPrizdol produced will sell for $3.70. Each unit of Prizdol produced incurs a variable production cost of $0.20.It costs $0.40 per year to operate a unit of capacity.a. Among the capacity levels of 30,000, 35,000,40,000, 45,000, 50,000, 55,000, and 60,000 unitsper year, which level maximizes expected profit?Use simulation to answer this question.b. Using the capacity from your answer to part a,NuFeel can be 95%…
- EXTRA RISK PROBLEMS Sanck A Sk Expected Retun Standand Deviatim 12 75 16 Comelation cnefficieit wth the Market Comelation coeficient with Stock B Risk fre e 2% Expected etu on the Market 12 Standund deviation of the Market E 1. What is the expected retum on a portfolio comprised of S60o00 of Suck A and S4000 of Sock B7 2. Whe is the Stnderd deviation of this portidio? 3. Does it make sense to combine these two in this way? Pease explain why. 4 What is the ocoefficient of variation for Stock A? What is the coefficient of variation for Stock B?Problem 1 Synergy Company sells co-amoxiclav antibiotic. The probability distribution of the demand for co-amoxiclav antibiotic is as follows: Estimated Sales in Units 120 units 210 units 300 units Probability 0.12 0.18 0.22 The estimated demand for co-amoxiclav antibiotics this coming month using the expected value approach is 1. How much is Expected Value? S =Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero.a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000.c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?
- Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero. a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000. c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?Guy Fieri has purchased a significant plot of land in Northwest Ohio for his newest venture: FlavorTownship. This hub for mind-boggling flavor and entertainment is a strictly for-profit operation. Guy would like to keep Flavor Township open all year-round, but due to Ohio weather the following are the probabilities of when it will be open: |- 30% chance it is open 300 days a year |- 55% chance it is open 325 days a year |- 15% chance it is open 350 days a year Flavor Township will expect to host 14,000 people each day that it is open and expects an average revenue of $45 per visitor. This paradigm-shifting landmark will cost $420,000,000 to start the investment and will require annual costs (food, employees, etc.) of $115,000,000. Every 3 years, Flavor Township will undergo necessary maintenance that will cost $22,000,000. If the expected life of Flavor Township is 15 years and a 16% return is expected, what is the expected NPV of this project?One investment option will give a guaranteed income of $100,000. An alternative option is risky - there is a 80%chance of earning $62,500 and 20% chance of earning $250,000. A risk-averse person will choose the guaranteed income of $100,000 over the risky option. True O False
- A share of stock of A-Star Inc. is now selling for $23.50. A financial analyst summarizes the uncertainty about the rate of return on the stock by specifying three possible scenarios: Business Condition Scenario, s Probability, p(s) End of Year Price Annual Dividend High growth 1 0.35 $35 $ 4.40 Normal growth 2 0.30 27 4.00 No growth 3 0.35 15 4.00 What are the holding-period returns for a one-year investment in the stock of A-Star Inc. for each of the three scenarios? Calculate the expected HPR and standard deviation of the HPR.1 Consider the two investments listed below with possible outcomes and probabilities: INVESTMENT (in $1000) P SAFE RISKY INVESTMENT AMOUNT 40+ 40+ GOOD SCENARIO OUTCOME 45+ 80+ AVERAGE+ SCENARIO PROB+ OUTCOME 0.40+ 0.40 42+ 45 BAD+ SCENARIO PROB OUTCOME PROB 0.20 35+ 0.20 10 0.40€ 0.40 a) What are the expected payoffs (E(x)) and standard deviations for each investment? b) Suppose I have utility function U(*) = √(x). What is the expected utility from each investment? c) Which investment will I choose, if any? Show and explain your work and provide the intuition.< d) What is the value of the risk premium for the SAFE investment? Show and explain your work and provide the intuition. e) What is the value of the risk premium for the RISKY investment? Show and explain your work and provide the intuition.< 43 A ✔ →Please explain in detail about expected utility to get a positive upvote. An individual has a utility function U = W¼, where W is her total wealth. She has one safe asset worth Rs 5,000, and another risky asset whose value can be either Rs 5,000 or Rs 1,400 with equal probabilities. What is her expected utility? (a) Rs 11,400 (b) Rs 100 aw lo boeoqmoo vmonoos to on g cubire cou s o iva alagos ad a adWnooni lanou lo OAuti (c) Rs 2,580 (d) Rs 90