FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26. A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has

image text in transcribed
26. A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .s. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. The variance of return on the portfolio is A. .0035 B. .0103 C. .0085 D. .0094 ration af 1.5%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Competitor Analysis In Financial Services

Competitor Analysis In Financial Services

Authors: Ian Youngman

1st Edition

1855733315,1782420053

More Books

Students also viewed these Finance questions

Question

★★★★★
The accounting records of Oats Electronics show the following data. Beginning inventory .... 3,000 units at $5 Purchases ......... 8,000 units at $7 Sales .......... 9,200 units at $10 Determine cost...

Answered: 1 week ago

Question

★★★★★
Carley Communications reported the figures from its adiusted trial balance and from its multi-step income statement for its first year of business, which ended on July 31,2024 : (Click the icon to...

Answered: 1 week ago

Question

★★★★★
3. Describe the critical success factors of ES.

Answered: 1 week ago

Question

★★★★★
Write the SQL queries that accomplish the following tasks in the HAFH Realty Company Property Management Database: a. Display the SMemberID and SMemberName for all staff members. b. Display the CCID,...

Answered: 1 week ago

Question

★★★★★
Problem 2. Transforming a floating-rate liability to fixed rate liability ( 40pts ) Company A has a floating-rate liability of $100 million, indexed to 6-month LIBOR +100 basis points. The payment is...

Answered: 1 week ago

Question

★★★★★
In determining where he should place his money to support his product launch, Terry want's to understand his marketing choices. He know he has options in promotional mix tools to launch the brand....

Answered: 1 week ago

Question

★★★★★
Problem #1: Geneticists examined the distribution of seed coat color in cultivated amaranth grains, Amaranthus caudatus. Crossing black-seeded and pale-seeded A. caudatus populations gave the...

Answered: 1 week ago

Question

★★★★★
In converting a bank's balance sheet to a weighted balance sheet according to risk-based capital guidelines, $50 Million dollar commercial loan portfolio would % weight and carry a would then equal...

Answered: 1 week ago

Question

★★★★★
Financial Statement Investigation A04-08-2015 FSI NAME: ASSIGNMENT #5 Questions: 1. Please identify the following ratios which we have discussed in class, e.g. current ratio, inven- tory turnover,...

Answered: 1 week ago

Question

★★★★★
Define a void function coug-fan) that prints Go, Cougs! It has no parameters 35-37: In the following three problems you need to write three functions that are related to each other The first is get....

Answered: 1 week ago

Question

★★★★★
Most research suggests we are not very good at detecting take emotions, and we think we're much better than we are. Do you believe training would improve your ability to detect emotional displays in...

Answered: 1 week ago

Previous Question Next Question