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Here are some historical data on the risk characteristics of Bank of America and Starbucks, Bank of America Starbucks B (beta) 1.32 .79 Yearty standard
Here are some historical data on the risk characteristics of Bank of America and Starbucks, Bank of America Starbucks B (beta) 1.32 .79 Yearty standard deviation of retum (%) 31.0 15.1 Assume the standard deviation of the return on the market was 19% (Use decimals, not percents, in your calculations.) a. The correlation coefficient or Bank of America's retum versus Starbucks is.37. What is the standard deviation of a portfolio invested half in each stock? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation % D. What is the standard deviation of a portfolio invested one-third in Bank of America, one-third in Starbucks, and one-third in risk-free Treasury bills ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation 96 c. What is the standard deviation in the portfolio is spit evenly between Bank of America and Starbucks and is financed at 50% margin, that is the investor puts up only 50% of the total amount and borrows the balance from the broker? (Do not round Intermediate calculations Enter your answer as a percent rounded to 2 decimal places.) Standard deviation % 0-1. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of 1 32 time Bank of America? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places> Standard deviation d-2. What is the approximate standard deviation of a portfolio comprised of 100 stocks with betas of 79 like Starbucks ? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Standard deviation
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