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

Question

1 Approved Answer

A portfolio consists of $9,000 in Stock A and $10,000 in Stock B. Stock A has an expected return of 0.114 and volatility of 0.4.

image text in transcribed
A portfolio consists of $9,000 in Stock A and $10,000 in Stock B. Stock A has an expected return of 0.114 and volatility of 0.4. Stock Bhas expected return of 0.140 and volatility of 0.8. The correlation between Stocks A and B is 0.6. What is this portfolio's expected return? Enter your answer as a decimal and show 4 decimal places. Type your

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

Alexander Hamilton On Finance Credit And Debt

Alexander Hamilton On Finance Credit And Debt

Authors: Richard Sylla

1st Edition

ISBN: 0231174012, 978-0231184571

More Books

Students also viewed these Finance questions

Question

★★★★★
Paper Printing Company disposed of a copy machine after using it for two years. The copy machine originally cost $65,000 and had associated accumulated depreciation of $32,500. Calculate the gain or...

Answered: 1 week ago

Question

★★★★★
=+individual investors hold shares for a shorter period, making capital gains (and losses). The dividend growth model takes the form: P = kg-8

Answered: 1 week ago

Question

★★★★★
Suppose that the total product of labor curve exhibits only diminishing marginal product. Describe in detail the shapes of the marginal product and average product curves.

Answered: 1 week ago

Question

★★★★★
N-Hexane is used to extract oil from soybeans. The solid residue from the extraction unit, which contains 0.78 kg liquid hexane/kg dry solids, is contacted in a dryer with nitrogen that enters at...

Answered: 1 week ago

Question

★★★★★
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.6x Days sales outstanding: 39.5 daysa Inventory turnover ratio: 7x...

Answered: 1 week ago

Question

★★★★★
Under the Canadian Human right code Only employers can be held liable for harassment in the workplace Select one: True False

Answered: 1 week ago

Question

★★★★★
3. Two legislators select a policy that affects them both, by alternately vetoing policies until one remains. First legislator 1 vetoes a policy. If more than one policy remains then legislator 2...

Answered: 1 week ago

Question

★★★★★
MC Qu. 8-32 Fort Smith Technologies... Fort Smith Technologies incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: Direct...

Answered: 1 week ago

Question

★★★★★
Question 4. The Longhorn Company has four departments in its factory with two service departments, S1 and S2, and two production departments, P1 and P2 each of which produces a single product. The...

Answered: 1 week ago

Question

★★★★★
Lundell Enterprises is an all-equity funded firm that operates in two businesses publishing and entertainment in two countries the United States and Mexico. The breakdown of revenues (in millions...

Answered: 1 week ago

Question

★★★★★
Required information [The following information applies to the questions displayed below.] Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones,...

Answered: 1 week ago

Previous QuestionNext Question