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

Question

1 Approved Answer

Aquaman stock has exhibited a standard deviation in returns of 0.7, whereas Green Lantern stock has exhibited a standard deviation of 0.8. The correlation coefficient

Aquaman stock has exhibited a standard deviation in returns of 0.7, whereas Green Lantern stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1. What is the standard deviation of a portfolio composed of 70% Aquaman and 30% Green Lantern? a. 0.56676 b. 0.32122 c. 0.61743 d. 0.75000

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

Risk Management And Financial Institutions

Risk Management And Financial Institutions

Authors: John C. Hull

3rd Edition

1118269039, 9781118269039

More Books

Students also viewed these Finance questions

Question

★★★★★
Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior: Personally stayed in the home for 22 days. Rented...

Answered: 1 week ago

Question

★★★★★
Aristotle said, "Character is that which reveals moral purpose, exposing the class of things a man chooses or avoids." Explain what you think Aristotle meant by this statement.

Answered: 1 week ago

Question

★★★★★
2. Have each student write a guide to his or her portfolio, explaining how strengths and weaknesses are reflected in the work included.

Answered: 1 week ago

Question

★★★★★
1. On February 1, 2010, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2011, at 102. Unamortized bond premium on that date was...

Answered: 1 week ago

Question

★★★★★
Consider a share of equity in the Aphrodite Conglomerate. In two years, it is expected to be worth $ 8 5 . It is expected to pay dividends of $ 4 this year, and $ 5 next year. Determine the current...

Answered: 1 week ago

Question

★★★★★
Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $118 Mar. 10 Purchase 70 units at $128...

Answered: 1 week ago

Question

★★★★★
Determine the moment generated by the 425 N force applied at point D about point C Note: Remember Counterclockwise moments are considered positive. Justify your answer to receive full points. 215 mm...

Answered: 1 week ago

Question

★★★★★
A recruiter is using a consistent set of questions to interview candidates for retail cashier roles in locations across the US Which question ( s ) would be inappropriate to ask? Select all that...

Answered: 1 week ago

Question

★★★★★
A customer entrusts certain important documents for safe custody to his bank.The bank keeps the documents in a wooden box.Later it is found that the documents were destroyed by white ants.What is the...

Answered: 1 week ago

Question

★★★★★
Two sides of a triangle measure 36 m and 49 m One possible dimension of the third side is Two sides of a triangle measure 36 m. and 49 m. One possible dimension of the third side is?

Answered: 1 week ago

Question

★★★★★
59. Trebecker Construction plans to discontinue its roofing segment which last year generated a contribution margin of $65,000 and incurred $70,000 in fixed costs. If the segment is discontinued,...

Answered: 1 week ago

Question

★★★★★
=+3. During a job interview with the Golden State Warriors, a question comes up about the importance of understanding metrics and KPIs related to social media. Outline three reasons why social media...

Answered: 1 week ago

Question

★★★★★
=+2. Find an example of a brand or nonprofit of your choice. Evaluate the vanity metrics on its social media sites (Facebook, Instagram, Twitter, and YouTube) and discuss three ways the brand could...

Answered: 1 week ago

Question

★★★★★
=+Identify the key components of a strategic plan

Answered: 1 week ago

Previous Question Next Question