Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 13, 2024

2 points Stock A has an expected return of 17.84% and volatility of 0.2. Stock B has expected return of 14.58% and volatility of 0.7.

2 points Stock A has an expected return of 17.84% and volatility of 0.2. Stock B has expected return of 14.58% and volatility of 0.7. The correlation between Stocks A and B is 0.4. You form a portfolio consisting of $1,000 in Stock A and $2,000 in Stock B. What is your portfolio's volatility? Enter your answer as a decimal and show 4 decimal places

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

The Handbook Of Financial Instruments

Authors: Frank J. Fabozzi

1st Edition

0471220922, 978-0471220923

More Books

Students also viewed these Finance questions

Question

★★★★★

For each type of adjusting entry explain the impact on assets, liabilities, owners' equity, revenue, expenses, and net income if the required adjusting entry wasn't made.

Answered: 1 week ago

Question

★★★★★

33. I would urge the group to beat its previous record.

Answered: 1 week ago

Question

★★★★★

Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: The firm expects the average wage rate to be $25 per hour in 2022. Spring...

Answered: 1 week ago

Question

★★★★★

2 points Stock A has an expected return of 17.84% and volatility of 0.2. Stock B has expected return of 14.58% and volatility of 0.7. The correlation between Stocks A and B is 0.4. You form a...

Answered: 1 week ago

Question

★★★★★

2022 2021 Accounts receivable (net), end of year $530,000 $480,000 Net sales on account 4,090,500 3,085,500 Terms for all sales are 1/10, n/45 (a1) Compute for each year the accounts receivable...

Answered: 1 week ago

Question

★★★★★

Research the "Span of Control" theory of Vytautas Andrius Graiciunas (1898-1952) a Lithuanian-French management consultant, management theorist, and engineer. and answer the following three questions...

Answered: 1 week ago

Question

★★★★★

How should you go about assigning a date to each task? a. Work backward from your project's deadline. b. Projects to be completed in two weeks or less don't usually need dates. c. Only assign dates...

Answered: 1 week ago

Question

★★★★★

A three colour spinner was spun 90 times. The outcomes are summarized in the table below: What is the experimental probability of spinning Red? Colour Frequency Blue 5n Black 30n Red 10n

Answered: 1 week ago

Question

★★★★★

Abdulah is doing a research study on anxiety and eating. He has done the same study for the last 10 years and the results are consistently the same each time. Abdulah's research study and methods...

Answered: 1 week ago

Question

★★★★★

Yeti in 2020: Can Brand Name and Innovation Keep it Ahead of the Competition? Address the following issues in essay form: One page 1.Define the industry which is described in the case. (you might...

Answered: 1 week ago

Question

★★★★★

Analyze the impact of labor unions on health care.

Answered: 1 week ago

Question

★★★★★

Assess three motivational theories as they apply to health care.

Answered: 1 week ago

Question

★★★★★

Discuss the history of U.S. labor unions.

Answered: 1 week ago

Previous Question Next Question