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just have some study question for my assignment and need some help on how to solve them any help would be appreciated. 1. Calculate the:
just have some study question for my assignment and need some help on how to solve them any help would be appreciated.
1. Calculate the: a. Expected return. b. The standard deviation of the return. a. Expected return: The expected return is nothing %. (Round to one decimal place.) b. The standard deviation of the return. The standard deviation is nothing %. (Round to one decimal place.) Probability Return 40% -80% 20% -75% 20% -50% 10% -30% 10% 1,000% --------------------------------------------------------------------------------------------------------------------2. Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, LOADING... , with a correlation of 21 % . Assume the portfolio is equally invested in these two stocks. If the correlation between Johnson & Johnson's and Walgreens' stock were to increase, a. Would the expected return of the portfolio rise or fall? b. Would the volatility of the portfolio rise or fall? a. Would the expected return of the portfolio rise or fall? (Select the best choice below.) A. Fall. B. Cannot tell from the information provided. C. Rise. D. Remain the same. b. Would the volatility of the portfolio rise or fall? (Select the best choice below.) A. Remain the same. B. Fall. C. Cannot tell from the information provided. D. Rise. Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 9.7% Standard Deviation 14.9% 18.2% --------------------------------------------------------------------------------------------------------------------3. Solve for the answer! 4. Solve for the Answer. 5. Solve for theStep by Step Solution
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