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

Question

1 Approved Answer

Alexander has invested half of his money in Microsoft's stock, a quarter in Amazon's, and the remainder in treasury bonds. The standard deviation of Microsoft

image text in transcribed
Alexander has invested half of his money in Microsoft's stock, a quarter in Amazon's, and the remainder in treasury bonds. The standard deviation of Microsoft and Amazon is 40 percent and 20 percent, respectively. Suppose the correlation between Microsoft and Amazon is 0.6. Assume zero correlation between bonds/stocks and zero variance for treasury bonds. Question 43 3 pts What is the standard deviation of the risk-free asset? Question 44 What is the standard deviation of Alexander's 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

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

Your Financial Well Being How To Get Your Financial Well Being With Smart Spending Habits

Your Financial Well Being How To Get Your Financial Well Being With Smart Spending Habits

Authors: Fransisca Patten

1st Edition

979-8388729705

More Books

Students also viewed these Finance questions

Question

★★★★★
Force on a U-bend (Fig. 7A.5). Water at 68F ( p = 62.4lb m /ft 3 , = 1 cp) is flowing in turbulent flow in a U-shaped pipe bend at 3 ft3/s. What is the horizontal force exerted by the water on the...

Answered: 1 week ago

Question

★★★★★
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely...

Answered: 1 week ago

Question

★★★★★
3. Why is private property, and the protection of property rights, so critical to the success of the market system? How do property rights encourage cooperation? LO2

Answered: 1 week ago

Question

★★★★★
As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that...

Answered: 1 week ago

Question

★★★★★
Comprehensive Pro Forma and Analysis You have been asked to analyze the potential purchase of Regency Manor, an apartment building w the following characteristics: X Purchase Price: $1,000,000, of...

Answered: 1 week ago

Question

★★★★★
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both...

Answered: 1 week ago

Question

★★★★★
Cordell Inc. experienced the following events in Year 1, Its first year of operation 1. Received $52,000 cash from the issue of common stock. 2. Performed services on account for $80,000 3. Pald a...

Answered: 1 week ago

Question

★★★★★
1. Summary of the Case Click or tap here to enter text 1. Summary of the Case Ick or tap here to enter t

Answered: 1 week ago

Question

★★★★★
Question 4 2 pts You have been asked to track the changes within the linear motion of the pelvis during a squat. At the initial position the pelvis was located at (5, 93) at 0 seconds. At the lowest...

Answered: 1 week ago

Question

★★★★★
Use synthethic division to determine is number K is a zero of F{.'x} f(a:)= 2$4=w33$+4;k=2 use synthetic division to determine if the number K is a zero of the Possible answers: a. yes is a zero b....

Answered: 1 week ago

Question

★★★★★
Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances Assets Cash & Receivables Inventory Land Income Taxes Payable $ 82,000 135,000 67,000 Bonds Payable Buildings &...

Answered: 1 week ago

Question

★★★★★
Shapes and communicates the current and future direction of the company.

Answered: 1 week ago

Question

★★★★★
Delegates effectively by taking into account the potential of the individual and the needs of the job. External focus People with astute external focus understand the market and how it is changing....

Answered: 1 week ago

Question

★★★★★
Listens to customers, seeks to anticipate potential challenges, and creates innovative business solutions.

Answered: 1 week ago

Previous Question Next Question