Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 13, 2024

A portfolio has 25% of its value in ASX shares and the rest in Woodside Petroleum (WPL). The volatilities of ASX and WPL are 40%

A portfolio has 25% of its value in ASX shares and the rest in Woodside Petroleum (WPL). The volatilities of ASX and WPL are 40% and 20%, respectively, and the correlation between ASX and WPL is -0.5. What is the standard deviation of the portfolio?

A. 12.17%

B. 13.23%

C. 14.95%

D. 13.65%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 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

Private Equity Mathematics

Authors: Oliver Gottschalg

1st Edition

1908783508, 9781908783509

More Books

Students also viewed these Finance questions

Question

★★★★★

"The unemployment rate figure released today was down sharply from last month's figure, three-tenths of a percent. This surprise caused bond prices to tumble." Explain the causation here.

Answered: 1 week ago

Question

★★★★★

The Close-Up argues that a cognitive revolution did not really occur. Explain.

Answered: 1 week ago

Question

★★★★★

2.31 Timber Tracts To estimate the amount of lumber in a tract of timber, an owner decided to count the number of trees with diameters exceeding 30 cm in randomly selected 15-by-15 m. Seventy...

Answered: 1 week ago

Question

★★★★★

In the direct labor variance matrix, there are three factors: (1) Actual hours Actual rate, (2) Actual hours Standard rate, and (3) Standard hours Standard rate. Using the numbers, indicate the...

Answered: 1 week ago

Question

★★★★★

Compare the three strategies for new product introduction

Answered: 1 week ago

Question

★★★★★

The forecasted demand for fudge for the next four months is 250,280,210, and 190 pounds. a. What is the recommended production rate if a level strategy is adopted with no backorders or stockouts?...

Answered: 1 week ago

Question

★★★★★

11. [p. 15] What is the equation preload and bolt size? used to calculate required Calculate fastener the tightening torques for the 20 fastener, a grade 8, -20 fastener and a grade 8, 14-28 faster...

Answered: 1 week ago

Question

★★★★★

Comfort with public disagreement is a big source of conflict on cross-cultural teams. Members from cultures that place a high value on "face" and group harmony may be averse to confrontation because...

Answered: 1 week ago

Question

★★★★★

Barilla Case: Which of the following contributed significantly to the weekly order fluctuation Barilla was experiencing? (Choose all that apply) Group of answer choices Lack of trust (history of...

Answered: 1 week ago

Question

★★★★★

7- Figure P6-28 shows a quick-return mechanism with dimensions. Calculate the velocities of points A, B, and C and the velocity of slip for the position shown. 2 = 10 rad/s CCW. L2-1.00 in L4 4.76...

Answered: 1 week ago

Question

★★★★★

Slugworth Candies, LLC, candy-making company that employs around 390 people. The company is composed of seven departments: Executive Staff (40), Human Relations (5), Finance and Accounting (10),...

Answered: 1 week ago

Question

★★★★★

The Skills Funding Agency is a partner of the Department for Business, Innovation & Skills (BIS) and promotes adult further education and skills training in the UK. The BIS issues an annual list of...

Answered: 1 week ago

Question

★★★★★

2 H ow might the reasons for training be linked to the processes adopted (e.g . on the job, online or courses)? McDonalds, the fast food chain, employs around 67,000 people in the UK. Although some...

Answered: 1 week ago

Question

★★★★★

1 What are the advantages and disadvantages of a competency- based approach such as that at North Carolina County? The North Carolina Cooperative Extension (NCCE) is a government- funded programme...

Answered: 1 week ago

Previous Question Next Question