Answered step by step

Verified Expert Solution

Link Copied!

Question

...

1 Approved Answer

Posted on Jul 10, 2024

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 14%, while stock Bhas a standard

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 14%, while stock Bhas a standard deviation of return of 20%. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. If the variance of return on the portfolio is .028, the correlation coefficient between the returns on A and B is .772 .779 387 873

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

14th Global Edition

9781292018201

Students also viewed these Finance questions

Question

Earnings 2019. The Annual Survey of Hours and Earnings (ASHE) provides the number of jobs, mean annual pay () and male mean annual pay () for all occupations....

Answered: 1 week ago

Question

★★★★★

Find the Supreme Court case involving Corn Products Refining Company (not the one in which rehearing was denied). a. What is the citation for the case? b. How many Supreme Court cases cite the Corn...

Answered: 1 week ago

Question

★★★★★

The assets that can be easily converted into cash within a short period, i . e . , 1 year or less are known as A ) Current assets B ) Fixed assets C ) Intangible assets D ) Investments

Answered: 1 week ago

Question

★★★★★

Imagine a natural monopoly in the energy sector facing criticism for high prices and inadequate service. How might the government intervene to address these concerns while ensuring economic...

Answered: 1 week ago

Question

★★★★★

Making sure that time is dedicated to problem - solving and post - performance review is an explicit part of: - Supportive learning environment. - Learning processes and practices. - Managers...

Answered: 1 week ago

Question

★★★★★

High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage...

Answered: 1 week ago

Question

★★★★★

In a research project the PMHNP is conducting, some patients are excluded from the project, so instead of randomizing subjects, the subjects are highly selected. This type of selection could produce...

Answered: 1 week ago

Question

★★★★★

The 15 tenure track professors in a university math department are paid an average of $90,000 per year, while the 10 adjunct professors are paid an average of $60,000 per year. What is the average...

Answered: 1 week ago

Question

★★★★★

9. Alicia is the project manager of the Cloud Managed Services team that works on the Spanish Telecom project. Recently the client sent a request for a custom cloud solution. The typical development...

Answered: 1 week ago

Previous Question Next Question