Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

Consider a portfolio where equal investment is made in each of the n stocks. Thus, the proportion invested in each stock is 1/ n. Prove

Consider a portfolio where equal investment is made in each of the n stocks. Thus, the proportion invested in each stock is 1/ n. Prove that the portfolio variance will be 1 Portfolio Variance = - Average variance + (1 - 1) Average Covariance = n

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

The Oxford Handbook Of State Capitalism And The Firm

Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman

1st Edition

0198837364, 978-0198837367

More Books

Students also viewed these Finance questions

Question

★★★★★

On January 1, 2002, there were 15 member countries in the European Union. Twelve of those countries eliminated their own individual currencies and began using a new common currency, the euro. For a...

Answered: 1 week ago

Question

★★★★★

How might Melissa have her regular staff assist in encouraging a continuing volunteer presence?

Answered: 1 week ago

Question

★★★★★

1 Are consumers more likely to be motivated by intrinsic or extrinsic goals?

Answered: 1 week ago

Question

★★★★★

Joint products and byproducts (continuation of 16-16). Quality Chicken is computing the ending inventory values for its July 31, 2009, balance sheet. ending inventory amounts on July 31 are 15 pounds...

Answered: 1 week ago

Question

★★★★★

Use the following information to answer Questions 2 - 4; The DISC Company has 1,000,000 common shares outstanding. The book value per share is $40 The the beta of the company's common stock is 1.20 ....

Answered: 1 week ago

Question

★★★★★

John has been gathering information from a variety of sources, including a manager's subordinates, in order to assess their performance. He is conducting Select one: a. 360-degree feedback. b....

Answered: 1 week ago

Question

★★★★★

Q9: Use the Quine-McCluskey method and generate the minimized function, given the following prime implicants. Prime Variables 0 1 2 3 5 13 15 Implicants (0.2) (13, 15) (1.3, 9, 11) (1, 3, 5, 7) ABCD...

Answered: 1 week ago

Question

★★★★★

As of July 2009, Google (ticker: GOOG) had no debt. Suppose the firm were to issue $96 billion in zero-coupon senior debt, and another $32 billion in zero-coupon junior debt, both due in January...

Answered: 1 week ago

Question

★★★★★

5.8 LAB: Structuring data using scale() and MinMaxScaler() The hmeq_small dataset contains information on 5960 home equity loans, including 7 features on the characteristics of the loan. Load the...

Answered: 1 week ago

Question

★★★★★

please answer all parts EA 19. LO 3.5 A business has the following transactions: - The business is started by receiving cash from an investor in exchange for common stock $20,000 - The business...

Answered: 1 week ago

Question

★★★★★

1 Little's Law 2 3 4 5 6 7 8 9 10 11 12 13 14 15 5675 16 17 18 A Throughput (per hour) Flow time (in minutes) Flow time (in hours) Work-in-process (WIP) Flow time (in month) Work-in-process (WIP)...

Answered: 1 week ago

Question

★★★★★

3. What management, organization, and technology issues should be addressed in deciding whether to use a conventional CRM system versus a cloud-based version? Salesforce.com is the most successful...

Answered: 1 week ago

Question

★★★★★

9-8 Mercedes-Benz Retail Group UK Ltd, with a network of 18 retail sites, nine used car sites, and seven smart centers across London, Birmingham and Manchester, wanted to learn more about its...

Answered: 1 week ago

Question

★★★★★

8-18 Describe four reasons why mobile devices used in business are difficult to secure.

Answered: 1 week ago

Previous Question Next Question