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ycow [4]
1 year 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]1 year 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
Pens cost 15 pence each.
ch4aika [34]

Answer:

The amount the school pays is £32.40

Step-by-step explanation:

The cost of each pen = 15 pence

The cost of each ruler = 20 pence

The number of pens bought by the school = 150

The number of rulers bought by the school = 90

The cost reduction (discount) on the items bought = 1/5

Therefore, we have;

The total cost of the pens bought by the school = 150 × 15 = 2250 = £22.50

The total cost of the rulers bought by the school = 90 × 20 = 1800 = £18.00

The total cost of the writing materials (rulers and pens) bought by the school = £22.50 + £18.00 = £40.50

The discount = 1/5 total cost reduction = 1/5×£40.50  = $8.10

The amount the school pays = The total cost of the writing materials - The discount

The amount the school pays = £40.50 - $8.10 =  £32.40

The amount the school pays =  £32.40.

7 0
2 years ago
Part B: Find an irrational number that is between 9.5 and 9.7. Explain why it is irrational. Include the decimal approximation o
fgiga [73]
Irrational number between 9.5 and 9.7...

9.678937... (never ending)...it is irrational because it cannot be made into a fraction because it is infinite.

the decimal approximation to the nearest hundredth is : 9.68

4 0
2 years ago
Billy Jo's school is selling tickets to a Fall Festival. On the first day of ticket sales the school sold 3 adult ticket and 8 s
denis23 [38]

Answer:

Y = 6

Step-by-step explanation:

On the first day of ticket sales the school <em><u>sold 3 </u></em>adult ticket and <em><u>8 student </u></em>tickets for a <em><u>total of $72</u></em>. The school took in <em><u>$152</u></em> on the second day by selling<em><u> 7 adult tickets and 16 student tickets.</u></em> How much is a student ticket?  

Day 1: 3x + 7y = 72

Day 2: 7x + 16y = 152

This becomes a system of equations.

3x+8y=72

3x+8y+−8y=72+−8y (Add -8y to both sides)

3x=−8y+72

3x/3 =  −(8y+72)/3

X = (-8/3) y + 24

Substitute  (-8/3) y + 24 for x in7x+16y=152:

7(-8/3 y + 24) + 16y = 152

-8/3 y + 168 = 152 (Simplify both sides of the equation)

-8/3 y + 168 − 168 = 152 + (−168) (Add -168 to both sides)

-8/3 y = -16

(-8/3 y)/(-8/3 y) = -16/ -8/3 y (Divide both sides by (-8)/3)

<u><em>y = 6</em></u>

<em>If you wanted to keep going...</em>

Substitute 6f or y in x = (-8/3) y + 24

(-8/3) y + 24  =  (-8/3) (6) + 24

SImplify: x = 8

<em>X = 8 and </em><u><em>Y = 6</em></u>

<u><em></em></u>

Hope this helps! <em>♥</em>

<u><em>~A.W.E.</em></u><em>S.W.A.N~</em>

6 0
2 years ago
I WILL AWARD BRAINLIEST!! PLEASE HELP!!! The figure below shows the movement of a pedestrian from point B to point E. Using the
MissTica

A) The speed of the pedestrian BC is 5 km/h

    The speed of the pedestrian CD is 0 km/h

    The speed of the pedestrian DE is 5 km/h

B) He arrived E since the stop after 6 hours

C) The formula for section BC is d(t) = 40 - 5t

    The formula for section CD is d(t) = 20

    The formula for section DE is d(t) = 50 - 5t

Step-by-step explanation:

A)

In the time-distance graph the speed is the rate of change of distance

and that mean speed = Δd/Δt ⇒ (slope of the line)

In line BC:

1. Δd = 40 - 20 = 20 km

2. Δt = 4 - 0 = 4 hours

3. The speed = 20 ÷ 4 = 5 km/h

The speed of the pedestrian BC is 5 km/h

In line CD:

1. Δd = 20 - 20 = 0 km

2. Δt = 6 - 4 = 2 hours

3. The speed = 0 ÷ 2 = 0 km/h

The speed of the pedestrian CD is 0 km/h

In line DE:

1. Δd = 20 - 0 = 20 km

2. Δt = 10 - 6 = 4 hours

3. The speed = 20 ÷ 4 = 5 km/h

The speed of the pedestrian DE is 5 km/h

B)

∵ He stop at t = 4 hours

∵ He arrived at point E at t = 10 hours

∵ 10 - 4 = 6 hours

He arrived E since the stop after 6 hours

C)

The speeds are represented by lines

The form of the equation of a line is f(x) = mx + c, where m represents

the slope of the line and c is the y-intercept (y when x = 0)

1. f(x) is d(t)

2. m is the speed

3. x is t

4. You can find c by substitute d and t by any point on the line

Line BC

Line BC has negative slope because d decreases when t increases

∵ m = -5 and c = 40

∴ d(t) = 40 - 5t

The formula for section BC is d(t) = 40 - 5t

Line CD

Line CD is a horizontal line (equation any horizontal line is y = c)

∴ m = 0 and c = 20

∴ d(t) = 20

The formula for section CD is d(t) = 20

Line DE

Line DE has negative slope because d decreases when t increases

∵ m = -5

∴ d(t) = -5t + c

To find c substitute the coordinates of point D in the equation

∵ The coordinates of point D are (6 , 20)

∴ 20 = -5(6) + c

∴ 20 = -30 + c

Add 30 to both sides

∴ c = 50

∴ d(t) = 50 - 5t

The formula for section DE is d(t) = 50 - 5t

Learn more:

You can learn more about the distance, speed, and time in

brainly.com/question/5102020

#LearnwithBrainly

3 0
2 years ago
Factor completely. <br> 81x^2+180x+100
Tasya [4]

(9x+10)² or (9x+10)(9x+10)

8 0
2 years ago
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