Stocks A and B have the following returns. a. What are the expected returns of the two
Question:
Stocks A and B have the following returns.
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two stocks?
c. If their correlation is 0.48 what is the expected return and standard deviation of a portfolio of 65% stock A and 35% stock B?
Transcribed Image Text:
12345 2 Stock A 0.08 0.04 0.14 -0.05 0.08 Stock B 0.05 0.04 0.05 0.01 -0.01
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
Answered By
Gauri Hendre
I worked as EI educator for Eduphy India YT channel. I gave online tutorials to the students who were living in the villages and wanted to study much more and were preparing for NEET, TET. I gave tutions for topics in Biotechnology. I am currently working as a tutor on course hero for the biochemistry, microbiology, biology, cell biology, genetics subjects. I worked as a project intern in BAIF where did analysis on diseases mainly genetic disorders in the bovine. I worked as a trainee in serum institute of India and Vasantdada sugar institute. I am working as a writer on Quora partner program from 2019. I writing on the topics on social health issues including current COVID-19 pandemic, different concepts in science discipline. I learned foreign languages such as german and french upto A1 level. I attended different conferences in the science discipline and did trainings in cognitive skills and personality development skills from Lila Poonawalla foundation. I have been the member of Lila poonawalla foundation since 2017. Even I acquired the skills like Excel spreadsheet, MS Office, MS Powerpoint and Data entry.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Question Posted:
Students also viewed these Business questions
-
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
-
A little cat, Bella, walks along a straight line, which we shall call the axis, with the positive direction to the right. As an observant scientist, you make measurements of her motion and construct...
-
Crane Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $31,500; Year 2, $37,500; and Year 3, $46,500. Crane requires a minimum rate of...
-
Find the derivatives of the function. 9 cot sin t t
-
Produce a paper on Network Security, investigate the topic through extensive literature search and deep synthesis.
-
Given the resistor configuration shown in figure, find the equivalent resistance between the following sets of terminals:? (1) A and b,? (2) B and c,? (3) A and c,? (4) D and e,? (5) A and e,? (6) C...
-
Using the CPI to compute real income. The number of dollars a person receives in a year is referred to as his or her monetary (or money) income. This figure can be adjusted to reflect the purchasing...
-
Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2018? Use the following financial statements for Lake of Egypt Marina, Inc. Calculate the following ratios for Lake of...
-
BigTech, Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) compensation expense related to these grants is based on the grant date fair value of the...
-
The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and volatility for each stock. Date Jan Feb Mar Apr May...
-
You have $55,000. You put 22% of your money in a stock with an expected return of 15%, $33,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 19%. What...
-
1. As a manager, you are steward of the companys funds. Are you willing to forgo departmental improvements and potential salary increases to honor this claim? Remember, there is no legal obligation...
-
Show that the scalar $K$, which, according to Eq. (5.366), is constructed from the extrinsic curvature as $K=g^{\mu v} K_{\mu u}$, is equal to the covariant divergence of the normal vector field,...
-
An aircraft is in flight, and its \(\mathrm{TAS}=220 \mathrm{~m} / \mathrm{s}\). The ambient temperature is \(T=253 \mathrm{~K}\). What is the stagnation temperature on its leading edge?
-
A diver's watch resists an absolute pressure of 5.5 bar. At an ocean having density of \(1025 \mathrm{~kg} / \mathrm{m}^{3}\) and exposing an atmospheric pressure of \(1 \mathrm{bar}\), what depth...
-
Estimate TAS if an aircraft is at ALT \(=9500 \mathrm{~m}\) and its Mach number \(M\) is 0.5 .
-
The Mach number of an aircraft is \(M=0.9\), and the local temperature is \(T=-10^{\circ} \mathrm{C}\). What is its airspeed?
-
The rise in housing prices in 20012006 was a key factor in setting the stage for the financial crisis of 20072009. Low interest rates is one possible cause for the rise in housing prices. Because...
-
Why did management adopt the new plan even though it provides a smaller expected number of exposures than the original plan recommended by the original linear programming model?
-
Break-Even Analysis In an effort to capture the large jet market, Airbus invested $13 billion developing its A380, which is capable of carrying 800 passengers. The plane has a list price of $280...
-
Break-Even and Taxes This problem concerns the effect of taxes on the various break-even measures. a. Show that, when we consider taxes, the general relationship between operating cash flow, OCF, and...
-
Break-Even and Taxes This problem concerns the effect of taxes on the various break-even measures. a. Show that, when we consider taxes, the general relationship between operating cash flow, OCF, and...
-
Problem Set Time Value of Money 1. In 10 years, what is the value of $100 invested today at an interest rate of 8% per year, compounded annually? 2. In 10 years, what is the value of $100 invested...
-
The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $120,000 Conversion costs:...
-
Q3 plz answer correctly and check work Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why is our operating profit margin...
Study smarter with the SolutionInn App