Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following probability distribution for stocks Xondy: Probability Return on stock Return on stock Y 1 0.3 -0% 2 0.5 12% 12 3 0.2

image text in transcribed
Consider the following probability distribution for stocks Xondy: Probability Return on stock Return on stock Y 1 0.3 -0% 2 0.5 12% 12 3 0.2 -145 20% The comelation coefficient between the two stocks in 0.20 What is the expected rate of return of stock X 0.0560 What is the expected rate of ratum ot stock Y* 0.0740 What d the standard deviation of stock X 0.100 What is the standard deviation of stock Yv 0.1068 Suppose that Rima want to invent 20% of her money in stock X and the rest in stock y What in the expected retum on Alma's porttool 0.0660 What is the plak valamily of Rima's portation t there exists a dek free onset wi that earns 15 annual retum. Rinna deciches to invest 50% in the plak free, and 50in the risky portfolio Identitled above in ports, calculate the shape ratlo

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

Developments In Entrepreneurial Finance And Technology

Authors: David B. Audretsch, Maksim Belitski, Nada Rejeb, Rosa Caiazza

1st Edition

1800884338,1800884346

More Books

Students also viewed these Finance questions

Question

How is strategy controlled?

Answered: 1 week ago