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

Question

1 Approved Answer

Below are the returns for two assets under different states of the economy. State Boom Normal Recession Probability 1/3 1/2 1/6 Asset 1 30% 15%

Below are the returns for two assets under different states of the economy.

State Boom Normal Recession
Probability 1/3 1/2 1/6
Asset 1 30% 15% 0%
Asset 2 12% 9% 6%

Find the standard deviation of a portfolio made up of 70% asset 1 and 30% asset 2. please show formula

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

Restructuring And Innovation In Banking

Restructuring And Innovation In Banking

Authors: Claudio Scardovi

1st Edition

331940203X, 978-3319402031

More Books

Students also viewed these Finance questions

Question

★★★★★
Contrast the scheduling policies you might use when trying to optimize a time-sharing system with those you would use to optimize a multiprogrammed batch system.

Answered: 1 week ago

Question

★★★★★
This is a special value that signals when there are no more items from a list of items to be processed. This value cannot be mistaken as an item from the list. a. Sentinel b. Flag c. Signal d....

Answered: 1 week ago

Question

★★★★★
In good years, storms occur according to a Poisson process with rate 3 per unit time, while in other years they occur according to a Poisson process with rate 5 per unit time. Suppose next year will...

Answered: 1 week ago

Question

★★★★★
Suppose the government imposes an excise tax of $10 per pair of shoes, but simultaneously launches a program of giving a gift of $10,000 per year to each shoestore. a. In the short run, what happens...

Answered: 1 week ago

Question

★★★★★
Q4) Consider the following sequence of instructions, and assume that it is executed on a 5 -stage pipelined data path (IF, D/R, ALU, DM, WB, Also assume that writing into a register happens in the...

Answered: 1 week ago

Question

★★★★★
Healthwise Medical Supplies Company is located at 2400 Second Street, City, ST 12345. The company is a general partnership that uses the calendar year and accrual basis for both book and tax...

Answered: 1 week ago

Question

★★★★★
In order to assess a sales candidate's follow - up skills, which of the following selection tools would be most appropriate?

Answered: 1 week ago

Question

★★★★★
Explain the various methods of job evaluation

Answered: 1 week ago

Question

★★★★★
Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

★★★★★
Describe the functions of Human resource management

Answered: 1 week ago

Question

★★★★★
Given the nature of its business, what are some of the key health and safety concerns that G Adventures should address?

Answered: 1 week ago

Question

★★★★★
If you were Sari, what would you do now? Sari works in a large mining operation in Saskatchewan. She has been with the company for a number of years and is currently a heavy equipment operator. As...

Answered: 1 week ago

Question

★★★★★
If you were the manager, what would do now? Sari works in a large mining operation in Saskatchewan. She has been with the company for a number of years and is currently a heavy equipment operator. As...

Answered: 1 week ago

Previous Question Next Question