Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

$ 1 0 0 , 0 0 0 . Her financial advisor provided her with the following information: ( Please round the answer to three

$100,000. Her financial advisor provided her with the following information:
(Please round the answer to three decimal places. For example, if you answer
is 0.952%, please fill 0.952 in the slot.)
The correlation coefficient of XYZ stock returns with the original portfolio returns is 0.40. The
inheritance changes AG's overall portfolio. Assuming AG keeps the XYZ stock, calculate the expected
monthly return of her new portfolio which includes the XYZ stock.
(Please round the answer to three decimal places. For example, if you answer is 0.952%, please fill 0.952 in the slot.)
0.728
1 point
Following the previous AG question, calculate the covariance of XYZ stock returns with the original portfolio returns.
(Please round the answer to five decimal places. e.g.,0.00014.)
1 point
Following the previous AG question, calculate the standard deviation of her new portfolio which includes the XYZ stock.
(Please round the answer to two decimal places. For example, if you answer is 1.95%, please fill 1.95 in the slot.)
2.27
1 point
Following the previous AG question, what is the annualized expected return of her new portfolio which includes the XYZ stock. (Please round the answer to two decimal
places. For example, if you answer is 1.95%, please fill 1.95 in the slot.)
Type your answer...
1 point
Following the previous AG question, what is the annualized standard deviation of her new portfolio which includes the XYZ stock. (Please round the answer to two decimal
places. For example, if you answer is 1.95%, please fill 1.95 in the slot.)
Type your answer...
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analysis And Valuation Using Financial Statements Text And Cases

Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard

3rd Edition

0324118945, 9780324118940

More Books

Students also viewed these Finance questions

Question

=+2. Are you happy to pay a price premium for CSR products?

Answered: 1 week ago