Question
1. Toyota Corp.'s stock is $ 30 per share. Its expected return is 22 % and variance is 15 %. Honda Corp.'s stock is $
1. Toyota Corp.'s stock is $30 per share. Its expected return is 22% and variance is 15%. Honda Corp.'s stock is $22 per share. Its expected return is 17% and variance is 8%. Benz Corp.'s stock is $50 per share. Its expected return is 10% and variance 7%. What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda? % _____ * Place your answer in percentage form, say 5.99% and not .0599
2. Toyota has an expected return of 20%, and a variance of 0.011. Honda has an expected return of 20%, and a variance of 0.005. The covariance between Toyota and Honda is 0.08. Using these data, calculate the variance of a portfolio consisting of 50% Toyota and 50% Honda.
3. Toyota Corp.'s stock price has a variance of returns of 0.0250. Honda Corp.'s stock has a variance of returns of 0.0425. The covariance between Toyota and Honda is 0.0295. What is the correlation coefficient between Toyota and Honda? *Use at least four decimal places in your answer.
4. Toyota Corp.'s stock price has a variance of returns equal to 0.0335. Honda Corp.'s stock price has a variance of returns equal to 0.0495. The covariance between Toyota and Honda is 0.0695. What is the standard deviation of a portfolio consisting of 50% Toyota and 50% Honda? *Place your answer in decimal form
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