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

Question

1 Approved Answer

Consider a $40,000 portfolio which consists of stocks A, B and C. Stock A is valued at $10,000. Stock B is valued at $10,000 and

image text in transcribed
Consider a $40,000 portfolio which consists of stocks A, B and C. Stock A is valued at $10,000. Stock B is valued at $10,000 and S tock C is valued at $20,000. (1) What is the expected rate of return of the portfolio? (15 points) (2) What is the standard deviation of the portfolio? (15 points)

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

Financial Management For Public, Health, And Not-for-Profit Organizations

Financial Management For Public, Health, And Not-for-Profit Organizations

Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese

6th Edition

978-1506396811, 150639681X

More Books

Students also viewed these Finance questions

Question

★★★★★
Use the modified rate of return approach with an investment rate of 18% per year and a borrowing rate of 10% to find the external rate of return for the following cashflows. rear Net Cash Flow, $...

Answered: 1 week ago

Question

★★★★★
Was there sufficient evidence to prove that Reyes violated the AECA and related regulations?

Answered: 1 week ago

Question

★★★★★
2. The Reid technique is often discussed and criticised. Explain the technique, and why it has been criticised by researchers.

Answered: 1 week ago

Question

★★★★★
A local restaurant, Freds Fish Fry, is estimating nonfood kitchen costs (labor, supervision, utilities, etc.) based on food cost. Data were gathered for the past 24 months and analyzed using a...

Answered: 1 week ago

Question

★★★★★
Turtle Island Corporation has the following Equity section: $600,000 Contributed Capital: Preferred shares, $1, unlimited shares authorized, 30,000 shares issued and outstanding....... Common shares,...

Answered: 1 week ago

Question

★★★★★
What is the yield to maturity (YTM) of a semiannual corporate bond with 13 years to maturity, a coupon rate of 8% per year, a $1,000 par value, and a current market price of $1,250? 5.31% 3.00% 2.66%...

Answered: 1 week ago

Question

★★★★★
a) Explain how changes in the film industry led to blockbuster movies becoming more limited creatively and oriented to making money [worth 5 marks] b) Then explain how changes in industry practices...

Answered: 1 week ago

Question

★★★★★
Nike not renewing franchise agreements in Russia Reporting by Reuters; Editing by Simon Cameron-Moore and Tomasz Janowski 25 May 2022, Reuters U.S. sportswear maker Nike has not renewed agreements...

Answered: 1 week ago

Question

★★★★★
Question 1 Title: Evaluate/Asses Ford South Africa Motor Company's Corporate Social Investment Strategy/Plan over the last 5 years. Who were the beneficiaries? How did they benefit? How successful...

Answered: 1 week ago

Question

★★★★★
Mawar manufacturing provides photocopy machines. Each time the machines breakdown, the company estimates that it loses an average of RM 500 in time and service expenses. One of the alternatives in...

Answered: 1 week ago

Question

★★★★★
WHAT TO EXPECT THIS WEEK How might Ethelo achieve greater financial sustainability with their climate focused products and services when serving smaller municipalities? Section 1-Define the business...

Answered: 1 week ago

Question

★★★★★
Does it use bullet points to emphasize your skills and accomplishments?

Answered: 1 week ago

Question

★★★★★
Does it use a maximum of two typefaces or fonts?

Answered: 1 week ago

Question

★★★★★
Does it have an employment objective that is specific and focuses on the employers needs as well as your own?

Answered: 1 week ago

Previous Question Next Question