Question 1Consider an investor's choice of a farm unit in the Corn Belt, one in the Califormia CentralValley, or the one in the Great Plains region. An investor added these three assets in oneportfolio. The portfolio composed of equal proportions of the three investments. Use theinformation in the table below to answer the questions that follows (show all your work forpartial credits).Investment AlternativesCorn Belt (1)Central Valley (2)Great Plains (3)Exp. Returnn-0.140.12n-0.07Std. Dev.O-0.08o-0.05oy-0.01Weight in Portfoliow-1/3wz-1/3wy-1/3Correlation Among Investment1 and 2 (p2)-0.301 and 3 (pu) --0.402 and 3 (s) --0.10Portfolio Data for Financial Servicing Analysis Under Riska. Calculate the expected retum of the portfolio.b. Calculate the variance and the standard deviation of the portfolio.c. Calculate the variance and standard deviation of the portfolio assuming that thecorrelation among the investments is all equal to 0.d. Calculate the variance and standard deviation of the portfolio assuming that thecorrelation among the investments is all equal to 1.c. Which scenario should the investor prefer [i.e., (b.), (c.), or (d.)]? Explain youranswer.Question 2What conditions must exist for diversification to be an effective risk response? How doescorrelation afTect diversification?

Given Expected Return,Standard Deviation,Weight in Portfolio Find a,b,c,d,e parts

Answered: Question 1 Consider an investor's…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter6: Systems Of Equations And Inequalities

Section: Chapter Questions

Problem 17PS: Cholesterol Cholesterol in human blood is necessary, but too much can lead to health problems. There...

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Cholesterol Cholesterol in human blood is necessary, but too much can lead to health problems. There are three main types of cholesterol: HDL (high-density lipoproteins), LDL (low-density lipoproteins), and VLDL (very low-density lipoproteins). HDL is considered “good” cholesterol; LDL and VLDL are considered “bad” cholesterol. A standard fasting cholesterol blood test measures total cholesterol, HDL cholesterol, and triglycerides. These numbers are used to estimate LDL and VLDL, which are difficult to measure directly. Your doctor recommends that your combined LDL/VLDL cholesterol level be less than 130 milligrams per deciliter, your HDL cholesterol level be at least 60 milligrams per deciliter, and your total cholesterol level be no more than 200 milligrams per deciliter. (a) Write a system of linear inequalities for the recommended cholesterol levels. Let x represent the HDL cholesterol level, and let y represent the combined LDL VLDL cholesterol level. (b) Graph the system of inequalities from part (a). Label any vertices of the solution region. (c) Is the following set of cholesterol levels within the recommendations? Explain. LDL/VLDL: 120 milligrams per deciliter HDL: 90 milligrams per deciliter Total: 210 milligrams per deciliter (d) Give an example of cholesterol levels in which the LDL/VLDL cholesterol level is too high but the HDL cholesterol level is acceptable. (e) Another recommendation is that the ratio of total cholesterol to HDL cholesterol be less than 4 (that is, less than 4 to 1). Identify a point in the solution region from part (b) that meets this recommendation, and explain why it meets the recommendation.
Conn Man's Shops, a national clothing chain, had sales of $450 million last year. The business has a steady net profit margin of 9 percent and a dividend payout ratio of 30 percent. The balance sheet for the end of last year is shown. Cash Accounts receivable Inventory Plant and equipment Total assets Assets Balance Sheet End of Year (in $ millions) $ 43 64 94 $ 186 Required new funds $ 387 $ Liabilities and Stockholders' Equity The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 20 percent is forecast for the company. Accounts payable Accrued expenses Other payables Common stock Retained earnings Total liabilities and stockholders' equity All balance sheet items are expected to maintain the same percent-of-sales relationships as last year,* except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, and…
According to Zillow.com, the median sale price for homes in January for South Carolina, California, and Virginia over the last three years is given in the table below (measured in $100,000). able South Carolina California Virginia 2018 183 534 98 2019 193 555 94 2020 216 569 85 In South Carolina, realtors take 5.4% of the sale price on average as part of their commission. The average realtor commission rates in California and Virginia are 4.9% and 5.3%, respectively. Use matrix multiplication to find the total earned by realtors from their commissions
Duffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O’Hagan had the opportunity to participate in all three initial public offerings. He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company: Purchase Price (per share) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $20,000 in a total of 2,000 shares and made a $3,400 profit from the transactions.
need help in part d,e anf f
Day traders typically buy and sell stocks (or other investment instruments) during the trading day and sell all investments by the end of the day. The following table shows the closing prices on September 22, 2015, of 12 stocks selected by your broker, Prudence Swift, as well as the change that day. Tech Stocks Close Change AAPL (Apple) $113.40 -1.81 ADBE (Adobe Systems) $84.66 1.34 EBAY (eBay) $25.61 -0.31 MSFT (Microsoft) $3.90 -0.21 S (Sprint) $4.40 0.02 WIFI (Boingo Wireless) $8.51 0.56 Non-Tech Stocks ANF (Abercrombie & Fitch) $21.81 -0.02 в (Воeing) $133.99 -2.03 F (Ford Motor Co.) $13.91 -0.40 GE (General Electric) $25.10 0.01 GIS (General Mills) $57.12 0.33 JNJ (Johnson & Johnson) $93.26 0.13 On the morning of September 22, 2015, Swift advised you to purchase a collection of three tech stocks and two non-tech stocks, all chosen at random from those listed in the table. You were to sell all the stocks at the end of the trading day. (a) How many possible collections are possible?…
I need some help with sections D, E, and F please

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