answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ycow [4]
2 years ago
14

What is the standard deviation of the market portfolio if the standard deviation of a fully diversified portfolio with a beta of

1.25 equals 18%
Mathematics
1 answer:
Nina [5.8K]2 years ago
3 0

Answer:

22.5%

Step-by-step explanation:

let the standard deviation for market portfolio = σₙ

Also let the standard deviation for fully diversified portfolio = σₓ

<u>To calculate fully diversified portfolio</u>

fully diversified portfolio has <em>σₓ = βσₙ</em>

From the given question beta (β) = 1.25

Also standard deviation for market portfolio (σₙ)  = 18% = 0.18

<em>From the equation above,  σₓ = βσₙ </em>= 1.25×0.18 = 0.225

                                                             = 22.5% (converting to percentage)

<em></em>

You might be interested in
1,250 an 15% sale an 6.5 sales tax
eimsori [14]
Given:
price = 1,250
sales discount = 15%
sales tax = 6.5%

The problem is unclear whether the price is the original price or the discounted price. I am assuming that the price is the original price.

Original price times sales discount rate is the value of sales discount
1,250 x 15% = 187.50

Original price less the value of sales discount is the discounted price.
1,250 - 187.50 = 1,062.50

Discounted price times sales tax rate is the value of the sales tax
1,062.50 x 6.5% = 69.06 

Discounted price plus sales tax is the total cost of the purchase
1,062.50 + 69.06 = 1,131.56
4 0
2 years ago
Compute the cost of driving for two different job options.4 $Driving costs 0.50 dollars per mile. Driving occurs 250 days per ye
ohaa [14]

Answer:

Compute the cost of driving for two different job options.

Driving costs 0.50 dollars per mile. Driving occurs 250 days per year.

Job 1

Miles each way 5

What is the cost of driving?

Job 2

Miles each way 50

What is the cost of driving?

4 0
2 years ago
PLS HELPPPP IM DOING THIS NOW AND I WANT THIS RIGHT PLSSSS For two years, two samples of fish were taken from a pond. Each year,
tatiyna

Answer:

the answer is B

Step-by-step explanation:

Your welcome.

5 0
2 years ago
Read 2 more answers
Let p denote the proportion of students at a particular university that use the fitness center on campus on a regular basis. For
9966 [12]

Answer:

a) P-value = 0.0968

b) P-value = 0.2207

c) P-value = 0.0239

d) P-value = 0.0040

e) P-value = 0.5636

Step-by-step explanation:

As the hypothesis are defined with a ">" sign, instead of an "≠", the test is right-tailed.

For this type of test, the P-value is defined as:

P-value=P(z>z^*)

being z* the value for each test statistic.

The probability P is calculated from the standard normal distribution.

Then, we can calculate for each case:

(a) 1.30

P-value=P(z>1.30) = 0.0968

(b) 0.77

P-value=P(z>0.77) = 0.2207

(c) 1.98

P-value=P(z>1.98) = 0.0239

(d) 2.65

P-value=P(z>2.65) = 0.0040

(e) −0.16

P-value=P(z>-0.16) = 0.5636

7 0
2 years ago
Tommy has a piece of toast that has butter on one side, and he dropped it twice. Both times, it landed with the butter side up.
Shkiper50 [21]
Since probability is the measure of the likelihood that an event will occur.so, maybe 5.
5 0
2 years ago
Read 2 more answers
Other questions:
  • Paul wants to add new mulch to the top of all five garden beds. the new mulch will be 10 centimetres (cm) deep. about how much n
    6·2 answers
  • Sam works as a baggage carrier at an airport facility. He owes a certain amount of money, in dollars, to his friend Daniel. The
    6·1 answer
  • Which of the following values for m proves that 2m + 2m is not equivalent to 4m2?
    15·2 answers
  • If f(x) = 2-x1/2 and if g(x) = x2-9, what is the domain of g(x) / f(x)
    13·1 answer
  • Suppose a number cube labeled from 1 to 6 is rolled and the spinner below is spun one time. What is the probability of rolling a
    9·1 answer
  • Sandra wants to rent a car to take a trip and has a budget of $90. There is a fixed rental fee of $30 and a daily fee of $10. Wr
    15·1 answer
  • A process manufactures ball bearings with diameters that are normally distributed with mean 25.1 mm and standard deviation 0.08
    12·1 answer
  • The number of siblings each student at a softball game has is recorded. The graph below shows the probability distribution of ha
    13·2 answers
  • The average life of a certain type and brand of battery is 75 weeks. The average life of each of 9 randomly selected batteries i
    15·1 answer
  • Sam and Bruno were computing how many kilometers they rode in the 3 bike trips they took last month. In order, they rode 45.7, 4
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!