Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 29, 2023

Calculate the standard deviation of the portfolio if the portfolio allocation is 50% for Asset X and 50% for Asset Y. Investment Standard deviation Asset

Calculate the standard deviation of the portfolio if the portfolio allocation is 50% for Asset X and 50% for Asset Y.

Investment Standard deviation Asset X 25.00% Asset Y 45.00% Asset Z 27.00% Correlation Asset X Asset Y Asset Z Asset X 1.00 0.71 0.24 Asset Y 0.71 1.00 0.19 Asset Z 0.24 0.19 1.00

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Solution To calculate the standard deviation of the portfolio we need to consider the stand... 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

Step: 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

Global Investments

Authors: Bruno Solnik, Dennis McLeavey

6th edition

321527704, 978-0321527707

More Books

Students also viewed these Finance questions

Question

★★★★★

Refer to Table 10.1 in the text and look at the period from 1973 through 1978. a. Calculate the arithmetic average returns for common stocks and T-bills over this period. b. Calculate the standard...

Answered: 1 week ago

Question

★★★★★

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Answered: 1 week ago

Question

★★★★★

You have been asked to research a small claims matter related to an unpaid car loan. The client, Joan Bennet, loaned her friend Angela Burke $10,000 to purchase a car. To date, Angela has only repaid...

Answered: 1 week ago

Question

★★★★★

Integrate using an appropriate formula For each problem, state the formula number, u and du, identify any constants (if appropriate), and show any constant "adjustments" / "Multiply by 1" if needed....

Answered: 1 week ago

Question

★★★★★

Identify the accounting items for which adjustments are made to the invoice price of goods when determining the net cost of purchases.

Answered: 1 week ago

Question

★★★★★

Draw Venn diagrams for the following propositions. 1. No life decisions are happenings based solely on logic. 2. All electric motors are machines that depend on magnetism. 3. Some political campaigns...

Answered: 1 week ago

Question

★★★★★

In Section 9.6.1 show that the expected number of Xi that exceed c is equal to 1.

Answered: 1 week ago

Question

★★★★★

Consider the Costello Music Company scenario presented in Problem 20 and the following quarterly sales data: a. Compute the seasonal indexes for the four quarters. b. When does Costello Music...

Answered: 1 week ago

Question

★★★★★

Alyssa clark is evaluating here debt safety ratio. Her monthly take home pay is $2, 250. Each month, the pays $340 for an auto loan, $140 on a personal line department store charge card, and $120 on...

Answered: 1 week ago

Question

★★★★★

As a business owner, I have 3 different locations within the Denver Metro area. Two of those places are retail sales operations with about 3,500 square feet in each retail location. The third...

Answered: 1 week ago

Question

★★★★★

Situation I On January 1, 2025, Vaughn, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,340,000. It was estimated that it would take 3...

Answered: 1 week ago

Question

★★★★★

Problem 2-20 (Algo) Plantwide versus Multiple Predetermined Overhead Rates: Service Industry (LO2-1, LO2-2, LO2-3, LO2-4] McCullough Hospital uses a job-order costing system to assign costs to its...

Answered: 1 week ago

Question

★★★★★

Year end is 31 December. XYZ decided to change the method of valuation of raw materials from the weighted average cost method to FIFO. Change In accounting policy has been accounted for during the...

Answered: 1 week ago

Question

★★★★★

Civil Legal Tradition and Protecting Identities Thread : The civil legal tradition begins to do something very specific that the chthonic legal tradition didn't, protect identities. Briefly explain...

Answered: 1 week ago

Question

★★★★★

Case Title: Harvard Case Study: Codecademy Monetizing a Movement What are the main reasons behind Codecademy's rapid growth? What kind of monetization model should the company introduce in the future?

Answered: 1 week ago

Question

★★★★★

A list, in order of relative importance, of aspects (ie cost, technical requirements, production capability, management, past experience) of a proposal that the government evaluates to determine...

Answered: 1 week ago

Question

★★★★★

how to slove it ? On December 31, 20x4, you purchase a building for $3419404. The building?s useful life is expected to be 32 years after which it will have a residual value of $223552. The straight-...

Answered: 1 week ago

Question

★★★★★

In the simple quantity theory of money, what will lead to an increase in aggregate demand? In monetarism, what will lead to an increase in aggregate demand?

Answered: 1 week ago

Question

★★★★★

Paf is a small country whose currency is the pif. Twenty years ago, the exchange rate with the U.S. dollar was 2 pifs per dollar, and the inflation indexes were equal to 100 in both the United States...

Answered: 1 week ago

Question

★★★★★

a. Compute the yield to maturity (YTM) of a zero-coupon bond with nine years to maturity and currently selling al 15 percent, b. Compute the YTM of a perpetual bond with an annual coupon of 6 and...

Answered: 1 week ago

Question

★★★★★

You are a U.S. investor and currently have a portfolio worth 100 million in German bonds. The current spot exchange rate is 2/$. The current one-year market interest rates are 6 percent in the euro...

Answered: 1 week ago

Question

★★★★★

Examine the test statistic used in testing a population proportion. Why is it impossible to test the hypothesis that the population proportion equals zero using such a test statistic? Try to...

Answered: 1 week ago

Question

★★★★★

Discuss why it is necessary to use an estimate of the standard error for a confidence interval and not for a hypothesis test concerning a population proportion.

Answered: 1 week ago

Question

★★★★★

In an article in Business Week (Living on the Edge at American Apparel), Dov Chaney, the CEO of American Apparel, indicated that the apparel store industrys average sales were $1,800/7 ( $257.14) a...

Answered: 1 week ago

Previous Question Next Question