Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings

Homework answers / question archive / 1



1. An investor has a portfolio with 55% in a risk-free asset (A) with a return of 7% and the rest in a risky asset (B) with an expected return of 15% and a standard deviation of 12%. What are the expected return and standard deviation of the portfolio?

2.According to the permanent income hypothesis, how will the paths of borrowing and con- sumption change in response to: (a) A temporary decrease in income when it occurs. (b) A permanent decrease in income when it occurs. (c) Are the answers different if the changes in income are unanticipated, i.e. if they are 'news? Comment on the size of the marginal propensity to consume and the size of the multiplier

Option 1

Low Cost Option
Download this past answer in few clicks

2.89 USD


Already member?

Option 2

Custom new solution created by our subject matter experts