Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 09, 2024

1.You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are

1.You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot.The standard deviation of returns for Merck and Home Depot are 16% and 24%, respectively.The correlation between these two stocks is 0.19.What is the standard deviation of the portfolio?

a)28.1%

b)21.5%

c)20.8%

d)16.8%

e)8.7%

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

Basic Finance An Introduction to Financial Institutions, Investments and Management

Authors: Herbert B. Mayo

11th Edition

1285425790, 1285425795, 9781305464988 , 978-1285425795

More Books

Students also viewed these Finance questions

Question

★★★★★

Identify the primary qualities of revenues and costs that are relevant for decision making.

Answered: 1 week ago

Question

★★★★★

York Instruments completed the following transactions and events involving its machinery. 2012 Jan. 1 Paid $ 107,800 cash plus $ 6,470 in sales tax for a new machine. The machine is estimated to have...

Answered: 1 week ago

Question

★★★★★

The number of molecules that a gas contains can be described by a Poisson process with rate ????, so that in an area of ???? units the expected number of molecules is ????????. Find the probability...

Answered: 1 week ago

Question

★★★★★

Why do better decision regarding the purchasing and managing of goods for sale frequently cause dramatic percentage increases in net income?

Answered: 1 week ago

Question

★★★★★

MC Qu. 81 Granfield Company is considering... Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,100. The division sales...

Answered: 1 week ago

Question

★★★★★

ABC Manufacturing Limited has a retirement plan that matches all contributions on a one to two basis. That is if you contribute $4,000 per year, then ABC will add $2,000 to make it $6,000. ABC...

Answered: 1 week ago

Question

★★★★★

A client can't find an email in their inbox that is needed for their case to proceed. The client calls you and gives you their sign-on information and tells you to go ahead and find what the firm...

Answered: 1 week ago

Question

★★★★★

Please complete the following steps for your first discussion post and response. Conduct research and find two studies related to the variables used in your field of study. Your articles should focus...

Answered: 1 week ago

Question

★★★★★

I shine a laser through a grating that is has slits 1.0 x 10-6 meters apart. The result hits the wall 3 centimeters from the grating. The first order constructive interference is 2 centimeters from...

Answered: 1 week ago

Question

★★★★★

Find the average value and estimate the uncertainty of these three measurements of length: 3.4 cm, 3.0 cm, and 3.5 cm. The average value is ____ and the uncertainty is ____. Question 13 options: A)...

Answered: 1 week ago

Question

★★★★★

A shipment of cereal boxes is delivered to a supermarket in Florida. The manager is told that the weights of the cereal boxes are normally distributed, with a mean of 165g and a standard deviation of...

Answered: 1 week ago

Question

★★★★★

Given the level of conflict between the two parties, explain how Disney and Pixar are competitively "Better Off" (as Porter might describe it) in an alliance or after an acquisition.

Answered: 1 week ago

Question

★★★★★

Ideally, all your strategies and goals ensure that you accomplish your _____________ _____________.

Answered: 1 week ago

Question

★★★★★

Explain the purpose and importance of the business plan.

Answered: 1 week ago

Question

★★★★★

When you reach the point in your career where you are ready to start your own business (or your next one), will you write a business plan before beginning? Why or why not? If you would choose to...

Answered: 1 week ago

Previous Question Next Question