Finance Suppose Wesley Publishing's stock has a volatility of 55%, while Addison Printing's stock has a volatility of 20%. If the correlation between these stocks is 55%, what is the volatility of the following portfolios of Addison and Wesley: a.100% Addison b. 75% Addison and 25% Wesley c. 50% Addison and 50% Wesley

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.