Suppose you were assigned to manage the ENMB portfolio which is composed of two risky asset - Shares A and Share B (see table below). Name of asset Standard deviation Expected return Weight in risky portfolio Share A σA = 28% E(rA) = 18% 55% Share B ΣB = 19% E(rB) = 10% 45% Treasury Bill (i.e. the risk free rate (rf)) σrf =0% E(rrf) = 6% Correlation between Shares A and B (ρAB) 0.65 3.1 Calculate the expected rate of return on the ENMB portfolio. [2 marks] 3.2 Calculate the expected risk premium on the ENMB portfolio. [2 marks] 3.3 Calculate the variance and standard deviation of return on the ENMB portfolio. [4 marks] 3.4 Suppose you have a client who chose to invest 75% of his funds in the current ENMB portfolio and 25% in Treasury Bills. Draw the Capital Allocation Line (CAL) applicable to your client’s portfolio. Remember to indicate the slope as well. [4 marks] 3.5 Calculate and indicate the following on the CAL graph: 3.5.1 Your client’s expected return. [2 marks] 3.5.2 Your client’s portfolio risk. [3 marks] 3.6 Calculate how the expected return (as was done in question 3.1) and expected standard deviation (as was done in question 3.3) of the ENMB portfolio would change if the correlation between Share A and Share B (ρAB) was not 0.65, but instead as follows: 3.6.1 ρAB = 0.95 3.6.2 ρAB = 0.50 3.6.3 ρAB = 0.00 3.6.4 ρAB = -0.30
Eric and James are registered domestic partners and are both residents of, and domiciled in, California. Eric makes $47,200, and James makes $46,800. Eric also received $820 in interest income from Eric's investment fund, which he inherited and has maintained as separate property during the partnership. What amount will Eric report on his federal and California returns?
Which of the following companies has the lowest degree of leverage? Review Later 50% Debt, 50% Equity 90% Debt, 10% Equity 20% Debt, 80% Equity 30% Debt, 70% Equity
RIDDLE GETTER=100 POINT AND BRAINLIEST 1. Where does today come before yesterday? 2. What goes up and down but doesn’t move? 3. What has hands, but can’t clap? 4. What building has the most stories? 5. What has a head and a tail but no body? ANSWER THESE 5 QUESTION TO GET RATE 5
Based on the calculations above for the Rudy Red Theater company, we have observed varied results after the table completions, especially the concession stand items, daily production of labor, among others. Therefore, we observe that there is no independent table or calculations since they depend on other variables to make deductions; therefore, they are highly interconnected. The first process of the calculation was chart completion which was the variable cost arithmetic. The variable costs help in determining the total costs of the variable resources. Therefore, the formula was variable cost equal to multiplying the total amount of the viable resources to the unit price for each variable. For example, the concession stand items are sold by the company to its customers; however, in case these items were not sold to the customers, then it's would not be essential to produce them since supply will be determined by the current demand of the products. Secondly, we have the total cost formula that was also used in table completion. The total cost of production is related to the production that is calculated by adding the variable costs to the fixed costs. Since the fixed cost of the company is not zero, therefore the total cost of production cannot also be zero. Another formula used when completing the table was the marginal cost for the Ruby Red Company. This was determined by dividing the total cost by the changes in output. An example from the above table, when the units of output were zero produced (meaning the concession stand items), there was a two thousand dollars total cost. There was also a total cost of two thousand dollars when one hundred concession items were produced daily. In the next column, we had to calculate the marginal revenue whose calculation formula is similar to the marginal cost. However, It is necessary to use the same formula as for marginal cost in order to calculate marginal revenue, with the exception that total revenue is used rather than total cost. Because there are no units of out
Have you ever faced any unforgettable trade-offs? You might give up something because of your decisions. What is the opportunity cost? How do you connect it to Economics theory?
Question 16 Would it take longer for the effects of monetary policy to be felt in the economy or fiscal policy? Explain why.
Question 14 Explain the fiscal policy actions used to stabilize the economy in times of inflation. What is this type of fiscal policy called?
Question 13 Explain the fiscal policy actions used to stimulate the economy during a recession. What is this type of fiscal policy called?
