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 35%, while stock B has a

image text in transcribed

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.35. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is O 19.11% O 17.74% O 21.59% O 20.39%

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_2

Step: 3

blur-text-image_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

Public Finance In A Changing World

Public Finance In A Changing World

Authors: Peter Birch Sorensen

1998th Edition

0333682211, 978-0333682210

More Books

Students also viewed these Finance questions

Question

★★★★★
Record the following into the general journal of Ricks Auto Shop. 201X Sep. 1 Rick Stone invested $110,000 cash in the auto shop. 5 Paid $9,000 for auto equipment. 8 Bought from Lexington Co. auto...

Answered: 1 week ago

Question

★★★★★
A 20-year $10,000 bond is redeemable at par and pays interest at j = 8% and is purchased to yield j2=6%. After 8 years, the bond is sold to an investor who desires a yield of j = 7%. What price does...

Answered: 1 week ago

Question

★★★★★
The following is from an article titled After the Workout, Got Chocolate Milk? that appeared in the Chicago Tribune (Janu ary 18, 2005): Researchers at Indiana University at Bloomington have found...

Answered: 1 week ago

Question

★★★★★
Wyco Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2015. Revenues during 2015camping fees...

Answered: 1 week ago

Question

★★★★★
2. The 2015 quarterly prices for The Hershey Company and Packaging Corporation of America are listed below along with any dividend paid. Hershey Packaging Corporation of America Quarter Po P Dividend...

Answered: 1 week ago

Question

★★★★★
Job 403 was not completed as of December 31, 2022. - The company considers under- or overallocated overhead immaterial. Place the information in T accounts and answer the following questions: a. What...

Answered: 1 week ago

Question

★★★★★
Company Information & Summary of Significant Account Policies Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers...

Answered: 1 week ago

Question

★★★★★
Palma Company had 90% ownership interest acquired several years ago in Small Company. The amortization of allocated excess (identifiable assets) arising from this acquisition amounted to P2,000 per...

Answered: 1 week ago

Question

★★★★★
5. Do all parts below without using u-substitution 1 3 2 a. Evaluate f(x- 2x + 4x) dx -1 b. / Evaluate 2x(x - 3)dx 9x2-x3/2 c. Evaluate - dx x d. Evaluate 16 dx CSCX 3 x+x+1 e. Evaluate f dx x dx f....

Answered: 1 week ago

Question

★★★★★
During May, 6,000 pounds of raw materials were purchased at an actual cost of $2.60 per pound. If there was a favorable materials price variance of $1,200 for December, the standard cost per pound...

Answered: 1 week ago

Question

★★★★★
It is essential that performance initiatives are measured in order to determine their success or failure. Outline two performance metrics that an HR manager might use to measure or monitor a...

Answered: 1 week ago

Question

★★★★★
Think about a store that you shop at frequently. What messages do the store layout and dcor send customers? Does the store offer any literature or brochures about itself? Does it have a Web site? If...

Answered: 1 week ago

Question

★★★★★
A Whats the real issue here, Cheryl and Michaels relationship or their behavior? If they acted more professionally at work, would the status of their romantic relationship matter?

Answered: 1 week ago

Question

★★★★★
3 What other approaches could you take to get Cheryl and Michael to change their behavior? Is going over their heads your only option?

Answered: 1 week ago

Previous Question Next Question