How many covariances are required to calculate the standard deviation of a portfolio containing 100 securities?
a) 100
b) 10,100
c) 4500
d) 5050
e) 4,950
e) 4,950
Solution: e (note that this is 100(100 + 1)/2 – 100; if you wish to include variances, then d is correct)
You might also like to view...
A $150 petty cash fund has cash of $64 and valid receipts for $75. The entry to replenish the fund would be:
A) Cash 86 Various Expenses 75Cash Short or Over 11 B) Petty Cash 86 Cash 86 C) Cash 64 Petty Cash 64 D) Various Expenses 75 Cash Short or Over 11Cash 86
Markers of diversity at the cultural variation level can be difficult to observe directly. What type of variation does this level include?
a. Variations in cognitive style b. Variations variations in ethnicity c. Variations in gender d. Variations in regional differences
At a break-even point of 400 units, variable costs were $400 and fixed costs were $200. What will the 401st unit sold contribute to operating profits before income taxes?
A. $1.50 B. $1.00 C. $2.00 D. $0.50
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2017 and 2018, respectively. Pepe uses the equity method to account for its investment in Devin.What is the consolidated gain or loss on equipment for 2017?
A. $21,000 loss. B. $21,000 gain. C. $0. D. $9,000 gain. E. $9,000 loss.