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

Question

1 Approved Answer

Consider two stocks. Stock A has a standard deviation of 56% and stock B has a standard deviation of 37%. The stocks have a correlation

Consider two stocks. Stock A has a standard deviation of 56% and stock B has a standard deviation of 37%. The stocks have a correlation of -0.05. You plan to invest $6,113 into stock A and $6,720 into stock B. What is the standard deviation of your two stock portfolio? (round weights to 3 decimal places and final answer to 2 decimal places).

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

Contemporary Financial Management

Contemporary Financial Management

Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan

8th Edition

0324065914, 9780324065916

More Books

Students also viewed these Finance questions

Question

★★★★★
You have been asked to consider investing in ASAP Printing Services Inc. Additional information: Total assets at January 1, 2016, were $4,100,000. Net income for 2016 was $420,000. No new shares were...

Answered: 1 week ago

Question

★★★★★
One major consideration in protecting a trade secret is the efforts by the company to keep the secret confidential. Develop a written policy for WidgetCo (in this chapters Theory to Practice problem)...

Answered: 1 week ago

Question

★★★★★
Define and give examples of independent and dependent variables, experimental and control groups, random assignment, and internal and external validity.

Answered: 1 week ago

Question

★★★★★
Average Cost, FIFO, and LIFO prepare a memorandum containing responses to the following items. (a) Describe the cost flow assumptions used in average cost, FIFO, and LIFO methods of inventory...

Answered: 1 week ago

Question

★★★★★
database that includes three tables with industry - relates details about the customer. One table has customer details , such as credit terms and address. You need to recommend a set of mic 5 rosoft...

Answered: 1 week ago

Question

★★★★★
Discuss the importance of target marketing when analyzing organizational markets. How easy is it to isolate homogeneous market segments in these markets? AppendixLO1

Answered: 1 week ago

Question

★★★★★
Under the presentax system corporation income stadionce when earned and again when the shareholders receive dividends or sed the stock Nevertheless the corporation form is widely used in the United...

Answered: 1 week ago

Question

★★★★★
4. A round A36 steel test specimen has a diameter of do of 22mm and a gauge length of Lo 175mm. Take Oy = 250 MPa. (20 pts) a] If a force of 70 kN elongates the length by 1mm, what is the engineering...

Answered: 1 week ago

Question

★★★★★
which of the following describe items that systems engineers should consider regarding contracting? Select three that apply. They should focus exclusively on contract pricing since past performance...

Answered: 1 week ago

Question

★★★★★
1: Conflicts can arise between shareholders and bondholders. Outline and evaluate the causes of conflict that might arise and suggest possible solutions. Question 2: Some analysts believe that...

Answered: 1 week ago

Question

★★★★★
Ms. Marcy Van Horne's salary for 2021 is $126,000. Other Information: 1. Ms. Van Horne received a performance bonus of $25,000, one-half of which was paid in 2021, with the remaining one-half not due...

Answered: 1 week ago

Question

★★★★★
1.1 Cascade Peaks Construction: Bathroom Given the information in the scenario: i. Identify the non-conforming construction method ii. Briefly explain why the drawings do not conform to NCC's...

Answered: 1 week ago

Question

★★★★★
2. How is communication defi ned?

Answered: 1 week ago

Question

★★★★★
=+Understand the different types of personal brands in social media

Answered: 1 week ago

Question

★★★★★
3. What communication processes and skills are relevant in all contexts?

Answered: 1 week ago

Previous Question Next Question