A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are:

Expected Return Standard Deviation
Stock fund (S) 16% 34%
Bond fund (B) 10% 25%

The correlation between the fund returns is 0.11.

Required:
a. What would be the investment proportions of your portfolio if you were limited to only the stock and bond funds and the portfolio has to yield an expected return of 12%?
b. Calculate the standard deviation of the portfolio which yields an expected return of 12%.

Answers

Answer 1

Based on the probability distributions of the funds and the correlation, the following is true:

Investment proportions would be 33% Equity and 67% debt. Standard deviation would be 21.16%.

What would be the Investment proportions?

The expected return can be found as:

= (Return on stock x Weight of stock) + (Return on debt x Weight of debt)

As we already have the return as 12%, we can solve the formula for weights :

12% = (16% x Weight of equity ) + (10% x Weight of debt)

12% = (16% x W of equity ) + (10% x (1 - W of equity))

12% = 0.16W + 10% - 0.1W

2% = 0.06W

W = 2% / 0.06

= 33%

Equity is 33% so Debt is 67%.

What would be the standard deviation?

= √(Weight of stock ² x Standard deviation of stock ² + Weight of debt ² x Standard deviation of debt² + 2 x standard deviation of stock x standard deviation of debt x Correlation x weight of stock x weight of debt )

= √(33%² x 34% ² + 67%² x 25%² + 2 x 34% x 25% x 0.11 x 0.33 x 0.67)

= 21.16%

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Related Questions

Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of outstanding common stock. On April 1, 16,000 additional common shares were issued, and another 32,000 common shares were issued on August 1. The company had net income for the year of $570,000.

Required:
Calculate the earnings per share of common stock.

Answers

Answer:

2.53

Explanation:

earnings per shares=net income / weighted average earning per shares

begining common stock =200,000 shares

April 1: 16000*9months/12months=12,000 shares

August 1: 32000*5months/12months=13,333shares

weighted average earning per shares=200,000shares+12000shares+13333shares=225333shares

earnings per shares=570,000(net income)/225333shares=2.53

Veronica is a sales manager with Puissance Systems. The company management allowed her to attend a workshop on management practices by the University of Oxford to help her develop her skills and reach her full potential. In the context of the needs hierarchy, identify the level of needs best exemplified in this scenario.

Answers

The level of needs that best exemplified in the Veronica's scenario is Growth.

What is called growth?

Growth is known to be a kind of irreversible raise of a person's size over a a time period.

Based on  Maslow's original theory, a person is said to fulfill her deficiency needs before they can move on to fulfill their growth needs.

The Deficiency needs are physiological needs, etc.  Growth needs are regarded as self-actualization needs.

see options below

Existence

Relatedness

Safety

Growth

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What are the values of entrepreneurship

Answers

Answer: what r value of entrepreneurship

Explanation:      Bravery. In recognizing and pursuing and opportunity, an entrepreneur requires bravery. ...

Vision. Vision guides the entrepreneur through the business planning process, clarifying the opportunity and setting goals for the organization. ...

Respect for self and others. ...

Trust. ...

Honesty. ...

Generosity. ...

Fortitude.      if thats what u mean by this question

________ corporate social responsibility (CSR) refers to the philanthropic approach to CSR in which organizations target programs that will generate the most positive publicity or goodwill for the organization but which runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

Answers

Philanthropic corporate social responsibility (CSR) serves as  philanthropic approach to CSR in which organizations target programs that will generate the most positive publicity.

What is Philanthropic corporate social responsibility?

Philanthropic corporate social responsibility  can be regarded as one whereby,  there us donation funds, goods to another organization or cause.

They runs the greatest risk of being perceived as self-serving behavior.

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Companies from Malaysia were accused of selling clear float glass, which is used in cars, to companies in India at incredibly low rates. These rates were considered unfair because the price was lower in the foreign market than it was in the domestic market. This practice is known as _______.

a. international marketing
b. cultural relativism
c. offshoring
d. dumping

Answers

This given practice that occurs where the products were sold at low prices in the foreign market is called dumping.

What is dumping in business?

This is a term that is made use of in international economics or international trade.

This practice takes place due to the fact that a nation goes to export products from another countries at a rate that is cheaper than what it is sold in the international market.

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Where can tourist obtain travel vaccinations​

Answers

It would depend on what country you’re currently in.

https://wwwnc.cdc.gov/travel/page/travel-vaccines

Whenever I had to travel abroad, I’d go to a passport health Center.

The Thomlin Company forecasts that total overhead for the current year will be $11,080,000 with 155,000 total machine hours. Year to date, the actual overhead is $7,551,000 and the actual machine hours are 84,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a. $2,063,100 underapplied
b. $1,587,000 overapplied
c. $2,063,100 overapplied
d. $1,587,000 underapplied

Answers

Answer:

B is your answer

Explanation:

The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $88 million.
Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2021.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)


Please see attachment for comparative balance sheets

Answers

It can be deduced that the cash flow shows that the net cash provided by operating activities will be $58 million.

How to compute the statement of cash flow

Cash flow from operating activities

Net income = $54 million

Add: Depreciation $15 million.

Add: Bad debt = $6 million

Add: Amortization expense = $3

Changes in operating assets and liabilities

Decrease in account receivable = $4 million

Increase in inventory = ($9 million)

Increase in prepaid expense = ($2 million)

Decrease in account payable = ($10 million)

Decrease in accrued liability = ($3 million)

Net cash provided by operating activities = $58 million

In conclusion, the net cash provided by operating activities is $58 million.

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Social media experts suggest that you use other means of communicating claims or complaints before turning to social media. Messages received through other channels are more likely to be addressed by the business, and social media presents a higher risk of your message getting into the wrong hands or becoming a legal issue. However, if you do use social media to convey a complaint or review, you should adhere to some basic guidelines. Which tips should you follow when posting a complaint or review online? Check all that apply.

a. Offset criticism with positives.
b. Do not include suggestions or negative comments in positive reviews.
c. Make your comment clean, polite, and to the point.
d. Ignore a business’s offer to discuss your post.
e. Refuse payment for positive comments.

Answers

The tips that one should follow when posting a review or complaint online are:

a. Offset criticism with positives.c. Make your comment clean, polite, and to the point.

What should you do with online reviews and complaints?

You are allowed to give criticisms but these would be better if they came with the positive things the company did as well.

You should also keep your comment free of profanity, polite, and straight to the point instead of lengthy so that your issue can be dealt with easily.

In conclusion, options A and C are correct.

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Assuming the same coupon rate and maturity length, the difference between the yield on a Treasury Inflation Indexed Security and the yield on a nonindexed Treasury security provides insight into:___________

a. the nominal interest rate.
b. the real interest rate.
c. the nominal exchange rate.
d. the expected inflation rate.

Answers

The correct option is d, the expected inflation rate.

If the coupon rate and the maturity length is kept absolutely constant, there is a difference which can be noted in the yield on a Treasury Inflation-Protected Security and the yield provided by a non-indexed Treasury security. This difference in yields provides useful insights to the expected inflation rate. Hence, it is the correct option.

Assume there are two companies organized at approximately the same time and engaged in competing businesses. One company issued $ 0.1 par common stock and another one issued $10 par common stock. Can you tell which company’s stock is preferable as an investment? Why? If you need additional information to decide which stock is a better investment, what kind of information will you need?

Answers

1. It is not possible to tell which company's stock is preferable as an investment based on the par-values of their stock issuance.

What is a par value?

A par value is a rate at which a company issues its stock or bonds (financial assets) to investors. The par value does not determine the actual value of the shares or investments because it is based on the corporation's charter.

2. Thus, the information an investor requires to decide the stock to choose depends on the profitability and growth potentials of the companies involved because investors want to earn profitable returns for their investments.

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1.2 Assume that there are 600 customers in your target area. The average income per annum per customer amount to R12500. You estimated that each customer spends 2;5% of his/her yearly income on your product/service. You believe that you can enjoy a market share of 25% of the total market.

1.2.1 Calculate, by showing all the steps, potential market share of your business.

1.2.2 Complete the sales budget figures for your business. Assume that you provide the service or sell the product for R50 each. ​

Answers

Answer:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

Explanation:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

QUESTION 7 Jenkins Company had the following information for the year: Direct materials used$295,000 Direct labor incurred (9,000 hours)$245,000 Actual manufacturing overhead incurred$343,000 Jenkins Company used a predetermined overhead rate using an estimated overhead of $320,000 and 8,000 estimated direct labor hours. What is the total manufacturing cost allocated for the jobs during the year

Answers

The total manufacturing cost allocated for the jobs during the year is $900,000

What is manufacturing cost?

Manufacturing cost refers to the summation of all the indirect costs which are incurred while manufacturing a product.

First, determine the predetermined overhead

= Estimated overheads / Estimated direct labor hours

= $320, 000 / 8,000

= $40 per direct labor hour

Then,

Manufacturing overhead applied

= Actual direct labor hours * Pre determined overhead rate

= $40 * 9,000

= $360,000

Manufacturing cost

= Direct material used + Direct labor incurred + Manufacturing overhead applied

= $295,000  + $245,000 + $360,000

= $900,000

Hence, the total manufacturing cost allocated for the jobs during the year is $900,000

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Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

Answers

Given that Daniel spent months writing a business plan, this goes to show that Daniel understands the steps needed to start a small business.

What is a business plan?

This is a plan that shows the details of a business company. The document shows the objectives that the company has.

This document also tells how the business plans to go about achieving all the goals that it has set for itself.

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Choose the option that best matches the description given.

New businesses are able to receive support from the
, which was created by Congress.

Answers

Answer:

State

Explanation:

Answer:

Bootstrap

Explanation:

New businesses are able to receive support from the Bootstrap which was created by Congress.

Took the test and I got it right

4) Identify five main advantages of outsourcing.

Answers

Answer:

Outsourcing helps you:

1) Focus on core tasks.

2) Lower costs.

3) Promote growth.

4) Maintain operational control.

5) Offer staffing flexibility.

Explanation:

George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2021, George began working in London (for a total of 214 days in 2021). He worked there until January 31, 2022, when he transferred to Paris. He worked in Paris the remainder of 2022. His salary for the first five months of 2021 was $100,000, and it was earned in the United States. His salary for the remainder of 2021 was $175,000, and it was earned in London. George's 2022 salary from Hawk was $300,000, with part being earned in London and part being earned in Paris.

Required:
a. Is George eligible for the foreign income exclusion for 2021 and/or 2022?
b. Determine George's gross income in 2021 and 2022.

Answers

This answer was deleted by a Brainly Staff Member for violating our Terms of Service.

Why do scientist follow the design process

Answers

Answer:

to create solutions to problems

please mark brainlist me

Explanation:

Scientists use the scientific method to make testable explanations and predictions about the world. A scientist asks a question and develops an experiment, or set of experiments, to answer that question. Engineers use the engineering design process to create solutions to problems.

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They use the scientific method to make testable explanations and predictions about the world.

A scientist asks a question and develops an experiment, or set of experiments, to answer that question.

Edna is partnering with a local grocery store to provide recipes for families on a budget. She plans to lead her audience through the process of making freezer-ready lasagna in her first presentation. Which form of informational speech would enable Edna to achieve her goal

Answers

Answer:

demonstrative speech

Explanation:

Demonstrative Speech would enable Edna to attain her objective.

What is Demonstrative Speech:

A Demonstrative Speech exists one in which you will display to your audience how to do something. It exists easiest to determine a topic if you start with a verb.

An informative speech simply provides an audience with specific information and leaves it up to them what to do with the information. A demonstrative speech exists equivalent to a persuasive speech in that it expresses information, but its immediate point is to tell individuals how to do something.

An effective demonstration should enable good observation skills, provoke thought, arouse interest, in current aspects of complicated concepts on a concrete level, and, most significantly, be the basis for class discussion.

A demonstration speech exists as a condition of informational speaking. The goal of the demonstration speech exists to demonstrate a technique or how to do something and provide the audience statement while utilizing visual aids.

Hence, Demonstrative Speech would enable Edna to attain her objective.

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#SPJ2

discuss Two social factors that may contribute to unemployment in South Africa amongst the youth?​

Answers

Unemployed youth are characterized by their lack of employability resulting from a range of socio-economic factors. They often have low levels of education, have dropped out of school and invariably do not have the literacy, numeracy and communication skills needed in the labor market.

Some of the social factors that have led to unemployment in South Africa amongst the youth are:

High population growth. High poverty rates.

As a result of high population growth, the number of youth in South Africa  has increased to a point where getting jobs for all of them is quite difficult.

High poverty rates also mean that a lot of the youth are unable to afford a tertiary education which means that they are unable to get the qualifications needed for a job.

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Marketing management seeks to satisfy customer needs by creating, communicating, and delivering ______ in selected markets.

Answers

The purpose of the marketing management is to satisfy their customers/clients needs by creating communication, and delivering value in selected markets.

What is Marketing Management?

Marketing management is the process of identifying lucrative prospects and putting them in place by satisfying consumers.

Consumers are at the center of marketing management. As a result, the marketing manager must determine which services that satisfies their customers and which services fail to fulfill their wants and expectations in order to generate the best services to compensate for the deficit.

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Papaya Partners is a distributor of papayas. They purchase papayas from individual growers and package them in 10-pound cartons for delivery to their various customers, generally supermarkets. Last month, they budgeted to sell $500,000 worth of cartons at a price of $25 each. Actual sales met a budget of $500,000 at $25 per carton.

Answers

The standard cost is $15 per carton and the actual cost is $20.26 per carton.

How to calculate the standard cost

From the complete question, the standard cost is the budgeted cost of producing one unit of good. This will be:

Fruit = 200000/20000 = 10

Packaging = 10000/20000 = 0.5

Labor = 90000/20000 = 4.5

Standard cost = 10 + 0.5 + 4.5 = 15

Also, the actual cost will be calculated thus:

Fruit = 244200/20000 = 12.21

Packaging = 11000/20000 = 7.5

Labor = 150000/20000 = 7.5

Actual cost will be:

= 12.21 + 0.55 + 7.5

= 20.26

In conclusion, the actual cost is $20.26.

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Which are advantages of ensuring you have good potential fit with an organization before accepting a position

Answers

Advantages of having a good potential fit with an organization before accepting a position include creativity, teamwork, retention, and productivity.

What are the Advantages of Being Sure You Have a Good Fit?

If I am a good fit for the job or a position, it implies that my skills, abilities, and qualifications are an excellent match for the position's criteria.

The advantages of having a good potential fit with an organization before accepting a position, therefore, include the following:

As an employee, I will be more engaged, contribute more, and be more creative.

I will make teamwork to be more efficient.

My likelihood of retention as staff will improve.

I will increase my productivity and higher quality of work.

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Landlords have rights, too! Which of the following is NOT a right of the landlord?
А.
A landlord can keep all of your security deposit if you do not take out the
garbage one day
B. A landlord can check your credit before renting to you.
с.
A landlord can and definitely will keep part or all of your security deposit if
you damage anything in the apartment.
D. A landlord can check your references before renting to you.

Answers

Answer:

A. A landlord can do all of the above EXCEPT keep your security deposit for not taking out the trash one day.

Explanation:

However if it is a reoccurring issue and u leave trash all over the apartment,
(s)he can keep the deposit unless it is completely cleaned when you move out.

please mark brainliest

An important role that IS plays in management control processes includes: Communication Conversion Management Transformation Implementation

Answers

An important role that IS plays in management control processes includes is Communication.

What role does management plays in an organization?

IS is known to have three important roles in management control processes. These processes are said to be;

Data collectionEvaluationCommunication

Management  often operates via  functions such as planning, organizing, staffing and others.

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Easy points



What are two of the most popular games of their genre Also, list their sales il do one for you Gacha do the rest pls :)

Answers

Answer:

Genshin Impact is 2.1 billion only for play store

Fate of grand order 3 billion now it's over 4 billion at the date of 2020

Answer:

Explanation:

I would say League of Legends is the most popular multiplayer online battle arena game. It is free to play so there is no sales figure but the game made $1.75 billions in 2020.

Which of the following are critical elements of Free Enterprise?
a) competition
b) command economy
c) capitalism
d) both a and c

Answers

Answer:

B

Explanation:

I have this also its the freedom to choose.

In the context of automation strategy, what is a Center of Excellence?

Answers

includes the people, processes, and technology necessary to maximize the benefits of automation, including robotic process automation. It is crucial to finding new automation opportunities, scaling your automation within the organization, and carrying out a long-term vision

Write a paragraph on needs and wants of the ancient communities

Answers

Answer:

Introduction

Info on needs and wants of ancient communities

.Info on system practiced in exchanging their goods

Logical arrangement of facts

Conclusion

Bill's Roast Beef sells 9 times as many sandwiches as Pete's Deli. The difference between their sales is 488 sandwiches.
How many sandwiches did each sell?
Pete's sold sandwiches?
Bill's sold sandwiches?

Answers

Okay, so let's call B = the number of sandwiches Bill sells
and P = the number of sandwiches Pete sells
Since Bill sells 7 times as many sandwiches as Pete, then
B = 7P

And the difference between their sales is 414 sandwiches. Since we know that Bill sells more than Pete, then
B - P = 414
So, now we can substitute for B from the equation above B = 7P

B - P = 414
7P - P = 414
6P = 414
P = 69
Therefore, Pete sells 69 sandwiches
Bill sells 7 x 69 = 483 sandwiches
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