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

Question

1 Approved Answer

MSBM has a two stocks portfolio. The assets are equally weighted with information shown below. Determine the standard deviation of the portfolio given a correlation

image text in transcribed
MSBM has a two stocks portfolio. The assets are equally weighted with information shown below. Determine the standard deviation of the portfolio given a correlation of 0.4 between the returns of firm A and B. firm A firm B Select one: a. 0.06734 b. 0.1265 c. 0.0771 d. 0.1123 e. 0.0567 E(r) 15% 10% standard deviation 12% 6%

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

Fintech For Finance Professionals

Fintech For Finance Professionals

Authors: David Kuo Chuen Lee, Joseph Lim, Kok Fai Phoon, Yu Wang

1st Edition

9811241864, 978-9811241864

More Books

Students also viewed these Finance questions

Question

★★★★★
A certain brand of freezer is advertised to use 730 kW .h of energy per year. (a) Assuming the freezer operates for 5 hours each day. How much power does it require while operating? (b) If the...

Answered: 1 week ago

Question

★★★★★
What are the responsibilities of process planning engineer? AppendixLO1

Answered: 1 week ago

Question

★★★★★
Refer to the data in Problem 9.34. Vet-Pro, Inc., also uses two different types of direct labor in producing the anti-anxiety mixture: mixing and drum lling labor (the completed product is placed...

Answered: 1 week ago

Question

★★★★★
1. a. Explain the historical definition of risk. b. What is a loss exposure? c. How does objective risk differ from subjective risk? 2. a. Define chance of loss. b. What is the difference between...

Answered: 1 week ago

Question

★★★★★
Questlon 50 (of 54) Comfort Mattresses, Inc. sold 26,000 shares of ts $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be Debit Cash $312,000,...

Answered: 1 week ago

Question

★★★★★
Construct and submit the Future State VSM using seconds for TT , PT , and CT calculations. Make the map fit on one page by turning the page landscape. The map must be legible and professional. Based...

Answered: 1 week ago

Question

★★★★★
1) If you were worth $1 Million at the end of World War II, calculate how much you would need today to maintain the same purchasing power as in 1945? 2) How much would Rockefellar's fortune be worth...

Answered: 1 week ago

Question

★★★★★
The client reaches out to the project team leader and asked about the timing and frequency of progress reports. When determining project progress and results using Agile methods, how is performance...

Answered: 1 week ago

Question

★★★★★
Option 2 PLEASE LABEL AND DRAW THE GRAPH ON PAPER, Remember: "Graph" or "illustrate" requires that you label all axes, curves, and points as indicated. If there is some type of shift, use an arrow to...

Answered: 1 week ago

Question

★★★★★
Freehand sketch an isometric, a 45-degree oblique, and an "informal" two-point perspective representation of the part ("informal" means, instead of following the canonical process to establish...

Answered: 1 week ago

Question

★★★★★
Visit the Postal Service website (www.usps.com) or your local post office to learn the difference between certified mail and registered mail.Then, address an envelope (or paper cut to the appropriate...

Answered: 1 week ago

Question

★★★★★
What benefits can be gained from an effective sales appeal in an adjustment message? (Objective 4)

Answered: 1 week ago

Question

★★★★★
Teamwork. Form teams of three students and design a brochure that could be used to welcome new students to your college.Be prepared to promote your brochure in a class contest. (Objective 5)

Answered: 1 week ago

Previous Question Next Question