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

Question

1 Approved Answer

A portfolio is constructed by investing equally into 9 stocks. The average variance of the returns of the stocks in the portfolio is 0.041. The

image text in transcribed

A portfolio is constructed by investing equally into 9 stocks. The average variance of the returns of the stocks in the portfolio is 0.041. The average off all covariances between distinct pairs of stocks in the portfolio is equal to 0.147. Find the volatility of the portfolio

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

Recent Advances And Applications In Alternative Investments

Recent Advances And Applications In Alternative Investments

Authors: Constantin Zopounidis, Dimitris Kenourgios ,George Dotsis

1st Edition

1799824365,179982439X

More Books

Students also viewed these Finance questions

Question

★★★★★
Describe a well-controlled system in terms of access controls for a major insurance company that equips each salesperson (life, property, and investments) with a laptop. Each salesperson must...

Answered: 1 week ago

Question

★★★★★
Assume you are the CEO of Peerless Products and that you are aware of your companys lack of overall end-to-end supply chain capability. What are some of the high-level, adverse impacts on your...

Answered: 1 week ago

Question

★★★★★
What is meant by selling costs? How is selling cost different from advertisement cost? Why do firms in monopolistic competition incur selling costs?

Answered: 1 week ago

Question

★★★★★
(Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2010. For 2010, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension...

Answered: 1 week ago

Question

★★★★★
a company has a return of equity of 0.32 , a profit margin of 0.19 and total asset turnover of 0.54 . using this info calculate the equity multiplier?

Answered: 1 week ago

Question

★★★★★
Auditors do not have statutory legal obligations to report on internal control within the entity. Moreover, issues relating to internal controls brought to the attention of management by the auditor...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about Java's generic types and type erasure is true? A) Generics in Java allow for stronger type checks at runtime, enabling more robust error handling. B)...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about Java's Stream API and functional programming is correct? A) The Stream API allows for sequential and parallel processing of collections but does not...

Answered: 1 week ago

Question

★★★★★
What is Working Capital ? Explain its types.

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements regarding Java's Optional class and its usage is true? A) The Optional class is designed to replace all instances of null in Java applications, ensuring no...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about Java's java.util.concurrent package and its features is correct? A) The CountDownLatch class allows one or more threads to wait until a set of...

Answered: 1 week ago

Previous Question Next Question