Question
1. Year Security A HPR Security B HPR Mean 6% 18% Std. dev. 20% 30% AB 0.22 You have $10,000 to invest. You are considering
1.
Year | Security A HPR | Security B HPR |
Mean | 6% | 18% |
Std. dev. | 20% | 30% |
AB | 0.22 |
|
You have $10,000 to invest. You are considering investing 30% of money in Security A and 70% in Security B. Use the above information to calculate your portfolio's expected return. Enter your answer as a percentage, e.g., 0.12345 is 12.35%.
2.
Year | Security A HPR | Security B HPR |
Mean | 6% | 18% |
Std. dev. | 20% | 30% |
AB | 0.22 |
|
You have $10,000 to invest. You are considering investing 30% of money in Security A and 70% in Security B. Use the above information to calculate your portfolio's total risk. Enter your answer as a percentage, e.g., 0.12345 is 12.35%.
3.
Order the following correlation coefficients from the lowest to the highest diversification benefit.
-0.45
0.22
-0.05
0.86
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