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

Question

1 Approved Answer

A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 39.44% and 70% of Stock 2 with a standard deviation of

A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 39.44% and 70% of Stock 2 with a standard deviation of 47.29%. The correlation of Stocks 1 and 2 is 0.4. What is the standard deviation of this portfolio? Enter as a percent and round to the nearest tenth of a percent

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

AS Accounting For AQA

AS Accounting For AQA

Authors: David Cox,Michael Fardon

2nd Edition

ISBN: 1905777140, 978-1905777143

More Books

Students also viewed these Finance questions

Question

★★★★★
What is the Fisher equation, and how is it used?

Answered: 1 week ago

Question

★★★★★
#2: A mining company is considering whether to develop a mining property. It is estimated that an immediate expenditure of $8 million will be needed to bring the property into production. Thereafter,...

Answered: 1 week ago

Question

★★★★★
Managers are sometimes criticized for focusing too much attention on the achievement of short-term goals. In your opinion, how much attention should be given to long-termversus short-termgoals? In...

Answered: 1 week ago

Question

★★★★★
Suppose you conduct currency carry trade by borrowing $1,000,000 at the start of each year and investing in the New Zealand dollar for one year. One-year interest rates and the exchange rate between...

Answered: 1 week ago

Question

★★★★★
Alpha Inc. combines the marginal cost of capital (MCC) and the investment opportunity schedules (IOS) on a graph. Which of the following areas on the graph shows the maximum excess of returns over...

Answered: 1 week ago

Question

★★★★★
1 A typical objective of an operational audit is for the auditor to: A. Determine whether the financial statements fairly present the entity's operations. B. Evaluate the feasibility of attaining the...

Answered: 1 week ago

Question

★★★★★
The Seneca Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: (Click the icon to view the standards.) The...

Answered: 1 week ago

Question

★★★★★
Old Troy Road 1/2 |- 80% + Marlboro Shaker ======= Road 1400 To RL 124 1600 1700 N.H. DIVISION OF PARKS & RECREATION DEPT. OF RESOURCES & ECONOMIC DEVELOPMENT D MONADNOCK STATE PARK P.O. Box 181,...

Answered: 1 week ago

Question

★★★★★
Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below] The following financial...

Answered: 1 week ago

Question

★★★★★
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various Information about the proposed investment follows: (Future...

Answered: 1 week ago

Question

★★★★★
The field of advertising is notorious for logical errors. While the conclusion reached in an advertisement may be true, the logic used to reach that conclusion may be based on an invalid argument....

Answered: 1 week ago

Question

★★★★★
Communication Ethics: Distinguishing Ethical Dilemmas and Ethical Lapses [LO-5] In a report of no more than one page, explain why you think each of the following is or is not ethical: a....

Answered: 1 week ago

Question

★★★★★
Communication Etiquette: Communicating with Sensitivity and Tact [LO-2] As a crisis manager for a company that manufactures insulin, you have just received an email from a high-profile patient using...

Answered: 1 week ago

Question

★★★★★
Fundamentals: Evaluating Communication Effectiveness [LO-3] Use the eight phases of the communication process to analyze a miscommunication youve recently had with a co-worker, supervisor, classmate,...

Answered: 1 week ago

Previous QuestionNext Question