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

Question

1 Approved Answer

A portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard

A portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard deviation of 20% and the returns for stock B have a standard deviation of 10%. The correlation coefficient between A and B is 0.4. What is your portfolio standard deviation?

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

Fundamentals Of Futures And Options Markets

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

5th Edition

0131445650, 9780131445659

More Books

Students also viewed these Finance questions

Question

★★★★★
The Benchley Company uses metal grates when assembling appliances. Information as to balances on hand, purchases, and requisitions of the grates is given in the following table. If a perpetual...

Answered: 1 week ago

Question

★★★★★
When the options contract is expired, then the option premium paid denotes a. Expense b. Income c. Gain d. None of the above

Answered: 1 week ago

Question

★★★★★
On March 1, a securities analyst recommended General Cinema stock as a good purchase in the early summer. The portfolio manager plans to buy 20,000 shares of the stock on June 1 but is concerned that...

Answered: 1 week ago

Question

★★★★★
Calculate the interest on a 90-day, 99% note for $40,000. (Use a 365- day year. Do not round intermediate calculations, and round your final answer to the nearest dollar.) O A. $300 OB. $888 O C....

Answered: 1 week ago

Question

★★★★★
As a healthcare manager, you will need to make ethical decisions that will have an impact on your employees and the organization. Completing this ethical review process will help with your...

Answered: 1 week ago

Question

★★★★★
You have a conference room that contains a Teams Rooms on Windows device. You need to update the background image of the device with new company branding. What should you do? Select only one answer....

Answered: 1 week ago

Question

★★★★★
How many moving trucks, professional movers, and moving cost would it take to support supporting a Sensitive Compartmented Information Facility (SCIF) move to another building? Use the following...

Answered: 1 week ago

Question

★★★★★
What is the speedup of the basic pipeline (without bypassing) shown in the Introduction slides (Tsequential / Tpipelined) if 1/5 of all instructions contain a data dependence? Can you give a general...

Answered: 1 week ago

Question

★★★★★
Write a one hundred and fifty word response about which resource(s) you found to be most useful in terms of not only researching the different types of networks that exist, but which might be best...

Answered: 1 week ago

Question

★★★★★
Person is a named tuple with fields: first_name, last_name, and age. Variable person_data is a Person object created with two strings and one integer read from input as attributes. Output the...

Answered: 1 week ago

Question

★★★★★
8. Explain how to price managerial and professional jobs.

Answered: 1 week ago

Question

★★★★★
1. What is the difference between exempt and nonexempt jobs?

Answered: 1 week ago

Question

★★★★★
Is our committee appropriately communicating its decisions? How will shareholders react?

Answered: 1 week ago

Previous Question Next Question