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

Question

1 Approved Answer

Investment A has a return of .05 in bear markets and .09 in bull markets. Investment B has a return of 0 in bear markets

image text in transcribed
Investment A has a return of .05 in bear markets and .09 in bull markets. Investment B has a return of 0 in bear markets and 19 in bull markets. The probability of a bear market is .8 and the probability of a bull market is .2. You will invest 60% of your money in stock A and 40% in B. What is the standard deviation of your portfolio's return? .08 .04 .06 .02

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

The Oxford Handbook Of Private Equity

The Oxford Handbook Of Private Equity

Authors: Douglas Cumming

1st Edition

0195391586, 978-0195391589

More Books

Students also viewed these Finance questions

Question

★★★★★
What are biases, and how do they affect the quality of management decisions?

Answered: 1 week ago

Question

★★★★★
=+2. Define burnout and name some physical, behavioral, and emotional symptoms of burnout.

Answered: 1 week ago

Question

★★★★★
The following is the ending balances of accounts at December 31, 2016 for the Vosburgh Electronics Corporation. Additional Information: 1. The common stock represents 1 million shares of no par stock...

Answered: 1 week ago

Question

★★★★★
Investment A has a return of .05 in bear markets and .09 in bull markets. Investment B has a return of 0 in bear markets and 19 in bull markets. The probability of a bear market is .8 and the...

Answered: 1 week ago

Question

★★★★★
Las tarifas a la importacion generalmente llevan a Un menor excedente del consumidor Un una perdida irecuperable del eficiencia Precio inferiores mas altos Un excedente del producto mas grande para...

Answered: 1 week ago

Question

★★★★★
The U.S. Department of Agriculture urges the use of process costing together with: Multiple Choice None of these answers are correct. Standard costing. Activity-based costing. Normal costing....

Answered: 1 week ago

Question

★★★★★
Campbell Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials...

Answered: 1 week ago

Question

★★★★★
Identify the shape of the distribution in the figure below. 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 Select one: O Skewed left Symmetric O Approximately bell shaped O Skewed right

Answered: 1 week ago

Question

★★★★★
Virtual reality is a form of technology that the textbook highlighted has shown to been effective in the area of self-regulation with: Group of answer choices ASD- Autism Spectrum Disorders Eating...

Answered: 1 week ago

Question

★★★★★
27:58 Immen Corporation manufactures two products: Product B820 and Product P99Y. The company uses a plantwide overhead rate based on direct labor- hours. It is considering implementing an...

Answered: 1 week ago

Question

★★★★★
3. Explain the forces that influence how people handle conflict

Answered: 1 week ago

Question

★★★★★
2. Describe ways in which group size, social relationships, and communication networks affect group communication

Answered: 1 week ago

Question

★★★★★
1. List the characteristics and types of groups and explain how groups develop

Answered: 1 week ago

Previous Question Next Question