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Mariana [72]
2 years ago
4

Assume that the standard deviation of the U.S. market portfolio is 18.2%, the standard deviation of the world portfolio is 17.1%

, and the correlation between the U.S. and nonU.S. market portfolios is .47. Suppose you invest 25% of your money in the U.S. stock market and the other 75% in the nonU.S. portfolio. What is the standard deviation of your portfolio?
Business
1 answer:
malfutka [58]2 years ago
4 0

Answer:

15.5%

Explanation:

The computation of the standard deviation of your portfolio is shown below:

Standard deviation of portfolio = weight of US Market portfolio ^2 × Standard deviation of US Market portfolio ^2 +  weight of Non US Market portfolio^ 2 × Standard deviation of Non US Market portfolio^2 + 2 ×  weight of US Market portfolio × weight of Non US Market portfolio × Standard deviation of US Market portfolio × Standard deviation of Non US Market portfolio × correlation

= [0.25^2 × 18.2^2 + 0.75^2 × 17.1^ 2 + 2 × 0.25 × 0.75 × 18.2 × 17.1 × 0.47]

= (0.0625 ×  331.24  + 0.5625  × 292.41  + 54.852525

= 20.7025  + 164.480625  + 54.852525

= 240.03565

Now take the square root of 240.03565 i.e 15.5%

We simply applied the above formula

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Explanation:

To begin with, the term known as <em>''humanity of production'' </em>refers to that human element that gives to the company its capability of leadership and other human abilities. Moreover, when it comes to the big data analytics those programs would not decrease the humanity of production because in order to create all those programs and in order to read all the information that those programs give and to use it and implement there will be a need of using human capital to complete the whole objective. So therefore that human will be as need as machines.

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Answer:

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Explanation:

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0                     -$150,000                                -$150,000

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2                        $30,000                                 -$90,000

3                        $30,000                                 -$60,000

4                        $30,000                                 -$30,000

5                        $35,000                                    $5,000

6                        $35,000                                  $40,000

etc.

The payback period is between year 4 and 5:

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Explanation:

Detailed steps are given below

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