Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data table Standard Deviation 0.16 0.21 pected Expected Return 0.18 0.18 0.40 Firm A's common stock Firm B's common stock Correlation coefficient pected (Click on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Data table Standard Deviation 0.16 0.21 pected Expected Return 0.18 0.18 0.40 Firm A's common stock Firm B's common stock Correlation coefficient pected (Click on the icon in order to copy its contents into a spreadsheet) Print Done Jen the to two decimal places 's common stock and 50% in Firm B's common stock and the correlation coefficient between the two stocks is - 1. then the This question: 2 points possible Computing the standard deviation for a portfolio of two risky investments Mary Culott recently graduited from Nichoh Se University and is om te begin investing her meer savas way of applying the has leared in business school Specifically, then waluting an investment in sport comprised of fiume common stock She has collected the following mation about the command of iman 2. My mother oynach of the two como sodo what the polipected of petom and standard Gain in potloo return? b. Answer part where the collation between the two common stock inte egual 1700 Awer part where the coon between the common stock into +1 Awartaw the corn between the two on stock investment in alto - 1 Uing your responses to go-describe the relatihip between the common and the hand of the pollo Submit quia This question: 2 pon possible Computing the standard deviation for a portfolio of two risky investments Mary Gulott recently graduated from Nichols State University and is anders to begin investing her meget savings way what has leared in business School Speclically, she is evaluating an investment in a portfolio comprised of two fum common stock. She has collected the following information about the commodo a Mary muests bat he money in each of the two common stock what is the portfolio's expected rate of return and standard deviation in pantolo retur? . Answer part a where the correlation the e. Answer part a where the correlation between the two common stock investits equal to 1 d. Anwer part a where the correlation between the tivecommon stock investments is equal to - 1 o. Using your teaponses to questions -ddcribe the relationship between the condition and the risk and return of the postele . Mary decides to invest 50% other money in Form As common stock and 50% in Form B's common stock and becometation on the locks 1 40. he expected cate of return in the pond to two decimal places) The standard deviation in the portfolla Round a two decimal places) b. May adidas to invest 50% of the money in Form As common stock and som in. Fim a common stock and econnatan batuan be a sucka na zem, then the expected some of return in the partout as hunt to decimal places) The standard deviation in the portfolio le % Round to the decimal places) c. ll Mary decides tomes of her money in Fim As common stock and 50% in Fim's comune lack and the conclusion coeficientes en het rode s +1, then to expected the stroom in the portion Round to two decimal places) The standard station in the portfolio Road to two decimal places Mary doci do was het money in Pomu common and so on om Bis common rock and the curulation conciert between the rock - the the expected to retum in the portion two decimal aces) Thu tandard deviation in the potatoes Rund to deci ..Using your responses to questions --- which of the following them to duobes the best the correlation and the risk and return of the perfect but chokox bolnie OA. The condition coefficient has no otect on the expected return of portfolio, but the desconocoaticantitative ne te themik 3. The correlation coefficient has rect on the expected rotum of portfolio but the doser the corelation coulintis toegative for the OCThe colon coulent has notect on the expected to a portfolio but on the correlation coeficientis 16 on the the risk OD The consiston coefficient has a negative effect on the expected return of a portfolio and the car the comforts to negative on the love this Next Data table Standard Deviation 0.16 0.21 pected Expected Return 0.18 0.18 0.40 Firm A's common stock Firm B's common stock Correlation coefficient pected (Click on the icon in order to copy its contents into a spreadsheet) Print Done Jen the to two decimal places 's common stock and 50% in Firm B's common stock and the correlation coefficient between the two stocks is - 1. then the This question: 2 points possible Computing the standard deviation for a portfolio of two risky investments Mary Culott recently graduited from Nichoh Se University and is om te begin investing her meer savas way of applying the has leared in business school Specifically, then waluting an investment in sport comprised of fiume common stock She has collected the following mation about the command of iman 2. My mother oynach of the two como sodo what the polipected of petom and standard Gain in potloo return? b. Answer part where the collation between the two common stock inte egual 1700 Awer part where the coon between the common stock into +1 Awartaw the corn between the two on stock investment in alto - 1 Uing your responses to go-describe the relatihip between the common and the hand of the pollo Submit quia This question: 2 pon possible Computing the standard deviation for a portfolio of two risky investments Mary Gulott recently graduated from Nichols State University and is anders to begin investing her meget savings way what has leared in business School Speclically, she is evaluating an investment in a portfolio comprised of two fum common stock. She has collected the following information about the commodo a Mary muests bat he money in each of the two common stock what is the portfolio's expected rate of return and standard deviation in pantolo retur? . Answer part a where the correlation the e. Answer part a where the correlation between the two common stock investits equal to 1 d. Anwer part a where the correlation between the tivecommon stock investments is equal to - 1 o. Using your teaponses to questions -ddcribe the relationship between the condition and the risk and return of the postele . Mary decides to invest 50% other money in Form As common stock and 50% in Form B's common stock and becometation on the locks 1 40. he expected cate of return in the pond to two decimal places) The standard deviation in the portfolla Round a two decimal places) b. May adidas to invest 50% of the money in Form As common stock and som in. Fim a common stock and econnatan batuan be a sucka na zem, then the expected some of return in the partout as hunt to decimal places) The standard deviation in the portfolio le % Round to the decimal places) c. ll Mary decides tomes of her money in Fim As common stock and 50% in Fim's comune lack and the conclusion coeficientes en het rode s +1, then to expected the stroom in the portion Round to two decimal places) The standard station in the portfolio Road to two decimal places Mary doci do was het money in Pomu common and so on om Bis common rock and the curulation conciert between the rock - the the expected to retum in the portion two decimal aces) Thu tandard deviation in the potatoes Rund to deci ..Using your responses to questions --- which of the following them to duobes the best the correlation and the risk and return of the perfect but chokox bolnie OA. The condition coefficient has no otect on the expected return of portfolio, but the desconocoaticantitative ne te themik 3. The correlation coefficient has rect on the expected rotum of portfolio but the doser the corelation coulintis toegative for the OCThe colon coulent has notect on the expected to a portfolio but on the correlation coeficientis 16 on the the risk OD The consiston coefficient has a negative effect on the expected return of a portfolio and the car the comforts to negative on the love this Next

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

Finance For IT Decision Makers

Authors: Michael Blackstaff

1st Edition

3540762329, 978-3540762324

More Books

Students also viewed these Finance questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago