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

Question

1 Approved Answer

hi guys how can i solve this with good explanation Question 9 Consider the following two stocks: Stock A Stock B Expected Return Variance 1196

image text in transcribed

hi guys how can i solve this with good explanation

Question 9 Consider the following two stocks: Stock A Stock B Expected Return Variance 1196 696 0.0324 0.0196 If the correlation of their return is equal to 0.3, what is the standard deviation of a portfolio of the two stocks whose weight in stock A is equal to 0.3? (Answers rounded to two decimal digits)

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_2

Step: 3

blur-text-image_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

Finance And Economics Readings Selected Papers From Asia Pacific Conference On Economics And Finance 2017

Finance And Economics Readings Selected Papers From Asia Pacific Conference On Economics And Finance 2017

Authors: Lee-Ming Tan , Evan Lau Poh Hock, Chor Foon Tang

1st Edition

9811081468,9811081476

More Books

Students also viewed these Finance questions

Question

★★★★★
The tank in Fig P3.66 weighs 500 N empty and contains 600 L of water at 20°C. Pipes 1 and 2 have D = 6 cm and Q = 300 m3/hr. What should the scale reading W be, in newtons? CV ter Sale

Answered: 1 week ago

Question

★★★★★
SMOLIRA GOLF CORP 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities $ 24,066 24,300 15,400 27,300 $ 62,356 67,000 Accounts...

Answered: 1 week ago

Question

★★★★★
8. What is the difference between MBO and LBO and how is MBO used as a form of harvesting?

Answered: 1 week ago

Question

★★★★★
Variable costing versus absorption costing The Mavis Company uses an absorption-costing system based on standard costs. Total variable manufacturing cost, including direct material cost, is $3 per...

Answered: 1 week ago

Question

★★★★★
Assume that the rate of inflation expected over the coming financial year in Saudi Arabia is 5.1%. a. Explain how a 1-year Saudi government-bill (Gov.-bill) could earn a negative real rate of return...

Answered: 1 week ago

Question

★★★★★
Reflect on your group's GBA group assignment experience in situations where the group was (or was not) learning deeply and collaborating. Reflect on your group's GBA experience in situations where...

Answered: 1 week ago

Question

★★★★★
QUESTION 35 A study is run to estimate the prevalence of a disease in men and women over the age of 60. The data are summarized below. Using this data, compute the relative risk of the disease...

Answered: 1 week ago

Question

★★★★★
Describe a simple human factors study design with one independent variable and one dependent variable. Do not use any example from the book or videos. The dependent variable should be related to...

Answered: 1 week ago

Question

★★★★★
Hello I need help with this question please and give me correct answer and explanation thank you 14. Jin's entries in his journal show the following:" $28 for purchase of paper and supplies $132...

Answered: 1 week ago

Question

★★★★★
Suppose that a learning algorithm is trying to find a consistent hypothesis when the classifications of examples are actually random. There are n Boolean attributes, and examples are drawn uniformly...

Answered: 1 week ago

Question

★★★★★
HO Designs experienced the following events during Year 1, its first year of operation:\ \ Started the business when it acquired $92,000 cash from the issue of common stock.\ \ Paid $39,000 cash to...

Answered: 1 week ago

Previous Question Next Question