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

Question

1 Approved Answer

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 24 %, while stock B has

image text in transcribed
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 24 %, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolo. If the variance of retikn on the portfollo is .041, the correlation coefficlent between the returns on A and B Is 291 131 727 436

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

Business Finance

Business Finance

Authors: Brian Watts

8th Edition

0712110720, 978-0712110723

More Books

Students also viewed these Finance questions

Question

★★★★★
Find the quadratic approximation to f(x) = x + 3 near a = 1. Graph f, the quadratic approximation, and the linear approximation from Example 3 in Section 3.11 on a common screen. What do you conclude?

Answered: 1 week ago

Question

★★★★★
Constantly strives to introduce improved ways of working and encourage best practice within their function.

Answered: 1 week ago

Question

★★★★★
Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all...

Answered: 1 week ago

Question

★★★★★
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 24 %, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio,...

Answered: 1 week ago

Question

★★★★★
Plz fast (a) Construct context-free grammars that generate the following languages. (i) The language of all palindromes of odd length over the alphabet {a,b}. (ii) {akw|w {a,b}",\w\=k, k >0}. (iii)...

Answered: 1 week ago

Question

★★★★★
Identify the features of decisions in an organizational context. Multiple select question. They are the outcomes of dynamic processes that are influenced by multiple forces. They are an...

Answered: 1 week ago

Question

★★★★★
2. Consider a market with (inverse) demand p = 100 - 2Q. There are two firms in the market with constant marginal and average costs of $10. a. Determine the Cournot equilibrium quantities and price....

Answered: 1 week ago

Question

★★★★★
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 180 units from the January 30 purchase, 5 units...

Answered: 1 week ago

Question

★★★★★
use the may 31 year end information from the following ledger accounts( assume that all accounts have normal balmces) Built Assignments Saved M. Muncel, Capital Date May 31 M. Muncel,...

Answered: 1 week ago

Question

★★★★★
Thomas Co. sold $1,000 worth of merchandise on a bank credit card with a 3% fee. The entry to record the sales transaction would include a debit to Cash in the amount of $

Answered: 1 week ago

Previous Question Next Question