Solution-Population variance for the securities

Population variance for the securities

Reference no: EM131100962

The investment department of Big Bucks Businesses (BBB) is examining several different strategies. The forecasting department has indicated that each economic state is equally likely to occur. The estimated return for each security under each state is below. Tarragon Inc. manufactures decorative bottles, and Vintner Corp. is a mining firm. The following table summarizes the data:

Economic State	Tarragon	Vintner
Recession	-11%	4%
Average	20%	8%
Boom	40%	6%

Sara believes that BBB should invest 80% in Tarragon and 20% in Vintner. What is the return and variance on this portfolio? Use the population variance for the securities.

Reference no: EM131100962

Questions Cloud

Calculate the required open-loop gain of the op amp : calculate the required open-loop gain of the op amp.

Which hopes to rival holiday inn on the national scene : A summary of the balance sheet of Travelers Inn Inc. (TII), a company which was formed by merging a number of regional motel chains and which hopes to rival Holiday Inn on the national scene, is shown in the table: Travelers Inn: December 31, 2004 (M..

Find two examples of psychometric measurement tools : Psychometric Tools Find two examples of psychometric measurement tools, as listed on page 288 that have been used in actual research. Critique them using the criteria listed on page 289 to determine how they avoid or are subject to bias.

Shares of common stock outstanding : It has 900 million shares of common stock outstanding, and its stock price is $33 per share. What is Jaster's market/book ratio? Round your answer to two decimal places

Population variance for the securities : Sara believes that BBB should invest 80% in Tarragon and 20% in Vintner. What is the return and variance on this portfolio? Use the population variance for the securities.

Use your intelligence to explain how topics : How can we use some of the measurement methods we've learned this term to make better decisions in business and in life? Sometimes it's hard for students to draw the linkages between topics examined in quantitatively-oriented courses to the "real ..

Discuss how insertion sort and selection sort works : Pick one of the following sorting algorithms and discuss how it works, its main features including performance characteristics: Insertion Sort, Selection Sort, Bubble Sort, Heap Sort, Merge Sort, Quick Sort.

Determine the gain error : An inverting amplifier must provide an input impedance of approximately 10 k Ω and a nominal gain of 4. If the op amp exhibits an open-loop gain of 1000 and an output impedance of 1 k Ω, determine the gain error.

Plan to deposit an additional : You have $38,630.60 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $200,000. You expect to earn 11% annually on the account.

User Account

All Pages

Population variance for the securities

Reference no: EM131100962

Reference no: EM131100962

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

As is common in commercial real estate

Two new software development projects are proposed to a

The heuser companys current outstanding 10 percent coupon

Report upon the year financial transaction of the company

1 in the search box type in the ticker of the company

What is the discounted payback period

What must be price of an at-the-money european call option

Calculate the present value at each interest rate

In january 2012 teresa leal was named treasurer of casa de

What is its inception evolution purpose and

Question regarding the inventory management process

Compute operating and financial leverage

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT