The expected returns and standard deviation of returns for two securities are as follows: Security Z Security Y Expected Return 8% 18% Standard Deviation 20% 30% The correlation between the returns is .15. (a) Calculate the expected return and standard deviation for the following portfolios: i. 100% in Z. ii. 75% in Z and 25% in Y. iii. 50% in Z and 50% in Y. iv. 25% in Z and 75% in Y. v. 0 % in Z and 100% in Y. vi. -25% in Z and 125% in Y. Feel free to use a spreadsheet for this calculation and just report the two values per portfolio. (b) Draw the mean-standard deviation frontier. (c) Mark the three regions in which the share in security Z is negative, between 0 and 1, and bigger than 1. Indicate the minimum variance portfolio and the efficient frontier. (d) The return of security Y is normally distributed. What is the probability it will have a return below 0% in a given year

Select the statement that indicates tina's company is a partnership. tina jones is a dancer specializing in latin dance styles. she always wanted to have her own dance studio where she could teach dancing to young and old alike. in 2006, she opened her first dance studio, electric diva, in madison triangle. it was a great choice as a business location because it's well-connected by highways to most places in the city. she leased the space for three years. her initial investment included a good sound system, cheerful interior design, and strong flooring. to raise capital for the business, tina turned to her brother-in-law, philip. philip made half the financial investment. he manages the accounts and social media needs of the business. he has a 30% share in trisha's business. together, they expanded the business to three dance studios in the city and plan to open franchises in other cities.

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Rachel died in 2014 and her executor is finalizing her estate tax return. the executor has determined that rachel’s adjusted gross estate is $10,120,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. using 2014 rates, calculate the estate tax liability for rachel’s estate.