Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

1. The return on Samsung stock has a standard deviation of 33% and the return on Toyota stock has a standard deviation of 14%. Their

1. The return on Samsung stock has a standard deviation of 33% and the return on Toyota stock has a standard deviation of 14%. Their covariance is 0.01848.

a. If you invest 80% in Samsung and 20% in Toyota, what is the variance of the portfolio?

b. What is the standard deviation of the portfolio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Advances In Finance Investment And Banking Derivatives Regulation And Banking

Authors: Barry Schachter

1st Edition

0444820736, 9780444820730

More Books

Students also viewed these Finance questions

Question

★★★★★

Set up and carry out an appropriate hypothesis test for the Hanford radioactive contamination data given in Question 11.2.9. Let = 0.05. Justify your choice of H0 and H1. What do you conclude?

Answered: 1 week ago

Question

★★★★★

what was the function of Michigan Childhood immunisation registry

Answered: 1 week ago

Question

★★★★★

=+Quantity of milk (millions of pints per year) Price of milk(p | Quantitydema Quantity suppli er pint) nded ed $1.20 550 850 110 600 800 1.00 650 750 0.90 700 700 0.80 | 750 | 650

Answered: 1 week ago

Question

★★★★★

The following information is available for a particular consulting contract performed by Newland Business Consultants in 2012: Consulting labor costs . . . . . . . . . . . . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★

1. The return on Samsung stock has a standard deviation of 33% and the return on Toyota stock has a standard deviation of 14%. Their covariance is 0.01848. a. If you invest 80% in Samsung and 20% in...

Answered: 1 week ago

Question

★★★★★

19. Time-series forecasting may be used to predict future values of a variable by: a. A simple moving average c. Exponential smoothing b. A weighted moving average d. All of the above 20. Given the...

Answered: 1 week ago

Question

★★★★★

GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets...

Answered: 1 week ago

Question

★★★★★

You create a Power BI workspace in the new workspace experience. You need to permit the following groups of users to access the workspace to perform specific actions on workspace content. You must...

Answered: 1 week ago

Question

★★★★★

PR 3-42 (Algo) Schedule of Cost of Goods Manufactured and Sold; Income Statement (LO 3-6) [The following information applies to the questions displayed below.] The following data refer to snack maker...

Answered: 1 week ago

Question

★★★★★

Financial Products employees acquired $1 million or greater in bonus bills. The top recipient, recognized through The Wall Street Journal as Douglas Poling, acquired more than $6.4 million, while the...

Answered: 1 week ago

Question

★★★★★

PITI is typically quoted on a monthly basis and compared to a borrower's monthly gross income by means of computing the individual's front-end and back-end ratios, which are used to approve mortgage...

Answered: 1 week ago

Previous Question Next Question