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 37.47% and 70% of Stock 2 with a standard deviation of

image text in transcribed
A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 37.47% and 70% of Stock 2 with a standard deviation of 40.84%. The correlation of Stocks 1 and 2 is 0.2. 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_2

Step: 3

blur-text-image_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

Real Estate Finance

Real Estate Finance

Authors: Sherry Shindler Price

1st Edition

0934772185, 9780934772181

More Books

Students also viewed these Finance questions

Question

★★★★★
Suppose that different amounts of fertilizer had been used in different fields that were involved in the wheat trials. (a) Explain how the use of different amounts of fertilizer confounds the...

Answered: 1 week ago

Question

★★★★★
31. Systemic vascular resistance determinations were made on a sample of 16 patients with chronic, congestive heart failure while receiving a particular treatment. The sample mean and standard...

Answered: 1 week ago

Question

★★★★★
Where is the position?

Answered: 1 week ago

Question

★★★★★
Craig Products Co. maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On June 1, the materials account had a debit balance of...

Answered: 1 week ago

Question

★★★★★
Everything else equal, the interest rate required on a callable bond will be less than the interest rate on a convertible bond. True or False

Answered: 1 week ago

Question

★★★★★
Ursus, Incorporated, is considering a project that would have a ten - year life and would require a 2 , 6 6 8 , 0 0 0 investment in equipment. At the end of ten years, the project would terminate and...

Answered: 1 week ago

Question

★★★★★
An owner decided to franchise it to become a chain of seven furniture shops in Australia with a total of 85 employees and $49,600 revenue each day. Some franchises have been around for 3 years while...

Answered: 1 week ago

Question

★★★★★
The length of the winning word in the National Spelling Bee is approximately normally distributed with a mean of 9 and standard deviation of 2. (a) Where on the standard normal curve would a word...

Answered: 1 week ago

Question

★★★★★
Which musical has a participatory Be - In as its finale? Select one: Spring Awakening American Idiot Hair Hedwig and the Angry Inch

Answered: 1 week ago

Question

★★★★★
employees at the plants are also shown. These data are as follows: MEdiCEll $7,400 $14,400 $12,300 $6,200 $3,100 Employees 123 402 256 109 67 a. Compute the weighted mean medical payments for these...

Answered: 1 week ago

Question

★★★★★
The bar shown in Fig. 11.12(a) is attached at its ends to unyielding supports. There is no initial stress in the bar. A force P is then applied as shown. (a) What are the forces in the steel and...

Answered: 1 week ago

Question

★★★★★
How does the organisational culture affect the way that the strategy can or should be implemented?

Answered: 1 week ago

Question

★★★★★
Has your organisation stated its values, and do you understand how these relate to the culture?

Answered: 1 week ago

Question

★★★★★
Can you see what limitations your purpose imposes on your strategy?

Answered: 1 week ago

Previous Question Next Question