Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The standard deviation of IBM is 28% and MSFT

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The standard deviation of IBM is 28% and MSFT is 25%, and the correlation between IBM and MSFT is 0.9. The standard deviation of the portfolio is ____%.

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

Teaching Public Budgeting And Finance

Authors: Meagan M. Jordan, Bruce D. McDonald III

1st Edition

1032146680, 978-1032146683

More Books

Students also viewed these Finance questions

Question

★★★★★

Rank the following species in order of increasing basicity. Explain your reasons for ordering them as you do. NH, CHyO- H2O CHICO NaOH NH, HS04 411

Answered: 1 week ago

Question

★★★★★

Brandon purchased a computer-controlled machine for his machine shop by paying a down payment of $17,500. He financed the balance amount with a loan at 4.75% compounded semi-annually, which required...

Answered: 1 week ago

Question

★★★★★

=+21.20. 20.17 1 Show that the gamma density (20.47) has moment generating function (1 - s/a)=" for s

Answered: 1 week ago

Question

★★★★★

The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys: Quantity of direct materials used...

Answered: 1 week ago

Question

★★★★★

a imited-life intangible asset for $375,000 on May 1, 2016. t years. What total amount of amortization expense should have 8. Jeff has a useful ife of t on the asset by December 31, 2018? b. $75,000...

Answered: 1 week ago

Question

★★★★★

Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 230 $ 160 $ Golf Guard 310 $ 190...

Answered: 1 week ago

Question

★★★★★

Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 Beginning Raw Materials, 1/1/18 Beginning Work in Process, 1/1/18 Direct Labor for 2018 Ending...

Answered: 1 week ago

Question

★★★★★

Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 600 units-200 from each of the last...

Answered: 1 week ago

Question

★★★★★

Laker Incorporated's fiscal year-end is December 31, 2024. The following is an adjusted trial balance as of December 31. Accounts Debit Credit Cash $10,400 Supplies 31,000 Prepaid Rent 22,000...

Answered: 1 week ago

Question

★★★★★

Assume that you are in the 15 percent marginal tax bracket and that you have $10,000 to invest. You have narrowed your investment choices down to California municipal bonds with a yield of 8.5...

Answered: 1 week ago

Question

★★★★★

1. Discount Banners pays $180,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $28,500, the building $123,500, and the...

Answered: 1 week ago

Question

★★★★★

4-8 The Malaysian government is a major healthcare provider. The government It plans to have 33 paperless public hospitals in Malaysia in the next few years. These paperless hospitals will be enabled...

Answered: 1 week ago

Question

★★★★★

4-9 As the head of a small insurance company with six employees, you are concerned about how effectively your company is using its networking and human resources. Budgets are tight, and you are...

Answered: 1 week ago

Question

★★★★★

4-6 Is there a digital divide? If so, why does it matter?

Answered: 1 week ago

Previous Question Next Question