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

Question

1 Approved Answer

Malcom Jones has 20% invested in Stock A with the rest invested in Stock B. The standard deviation of Stock A is 3% and the

Malcom Jones has 20% invested in Stock A with the rest invested in Stock B. The standard deviation of Stock A is 3% and the standard deviation of Stock B is 7%. The variance of the portfolio is 0.003743. Calculate the correlation between Stock A and Stock B. Please answer as a decimal to 4 decimal places.

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

Principles Of Quantitative Equity Investing

Principles Of Quantitative Equity Investing

Authors: Sugata Ray

1st Edition

ISBN: 0134878450, 978-0134878454

More Books

Students also viewed these Finance questions

Question

★★★★★
The metal ion indicator xylenol orange (Table 11-3) is yellow at pH 6 ( max = 439 nm). The spectral changes that occur as VO 2+ is added to the indicator at pH 6 are shown here. The mole ratio VO 2+...

Answered: 1 week ago

Question

★★★★★
It is suspected that the high amounts of tannin in mature oak leaves inhibit the growth of the winter moth (Operophtera bromata L., Geometridae) larvae that extensively damage these trees in certain...

Answered: 1 week ago

Question

★★★★★
=+c. Illustrate the deadweight loss from charging a $30 admission fee. Explain why charging a $30 admission fee is inefficient.

Answered: 1 week ago

Question

★★★★★
The following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account,...

Answered: 1 week ago

Question

★★★★★
Malcom Jones has 20% invested in Stock A with the rest invested in Stock B. The standard deviation of Stock A is 3% and the standard deviation of Stock B is 7%. The variance of the portfolio is...

Answered: 1 week ago

Question

★★★★★
A 1x1 sheet is deformed as shown. The values of a and b are unknown, but the two strain gages have readings of = 0.255 and -0.178. The strain gages are oriented at 30 degrees from horizontal. Find...

Answered: 1 week ago

Question

★★★★★
A major U.S. oil company has developed two blends of gasoline. Managers are interested in determining whether a difference in mean gasoline mileage will be obtained from using the two blends. As part...

Answered: 1 week ago

Question

★★★★★
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future...

Answered: 1 week ago

Question

★★★★★
Required information [The following Information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. December 1 Sanyu Sony...

Answered: 1 week ago

Question

★★★★★
2. Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $3 million...

Answered: 1 week ago

Question

★★★★★
Pharmaceutical Benefits Managers (PBMs) are intermediaries between upstream drug manufacturers and downstream insurance companies. They design formularies (lists of drugs that insurance will cover)...

Answered: 1 week ago

Previous QuestionNext Question