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

Question

1 Approved Answer

Portfolio cosists of two assets. The share of first asset is 25% and its standard deviation is 59%. The standard deviation of the second asset

Portfolio cosists of two assets. The share of first asset is 25% and its standard deviation is 59%. The standard deviation of the second asset is 32%. Calculate the standard deviation of the portfolio assuming a correlation of 0.3 between two assets. Give answer in % (without adding % symbol, use dot '.' as decimal point)

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

Personal Finance

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

7th Edition

0072866578, 9780072866575

More Books

Students also viewed these Finance questions

Question

★★★★★
Mammals that depend on being able to run fast have slender lower legs with flesh and muscle concentrated high, close to the body (Fig. 8-34) On the basis of rotational dynamics, explain why this...

Answered: 1 week ago

Question

★★★★★
Find all (real) values of k for which A is diagonalizable. A = | 0

Answered: 1 week ago

Question

★★★★★
What are the possible problems that can arise when a simple linear regression model is used when (a) the explanatory variable is measured with error? (b) there is a nonlinear relationship between the...

Answered: 1 week ago

Question

★★★★★
On December 31, 2015, Ling Co. estimated that 2% of its net sales of $450,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11,...

Answered: 1 week ago

Question

★★★★★
Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will...

Answered: 1 week ago

Question

★★★★★
A current ratio measures a O company's ability to offer retirement benefits including pension to all its employees.. O company's ability to issue dividends to its stockholders on a timely manner. O...

Answered: 1 week ago

Question

★★★★★
Exeter Division of Wetherby Labs acquired an asset with a cost of $800,000 and a four-year life. The cash flows from the asset, considering the effects of Inflation, were scheduled as follows: Year 1...

Answered: 1 week ago

Question

★★★★★
Flyaway Rural Airlines is planning to add the following three aitcraft to its fleet, an Airbus, a Boeing and an fimbraer, with the following characteristic: Part A: Calculate the weighted average...

Answered: 1 week ago

Question

★★★★★
A C D E G H 1 The finacial manager of a company is preparing the monthly budget report. He aims to understand which of expenses have been over budget in the previous year. 2 You are required to: 3...

Answered: 1 week ago

Question

★★★★★
Question 1(15 Marks): A firm produces one good with a technology given by the production function y = f (x) = x1/3. The factor price w and the price p for the good are fixed. a) Explore whether the...

Answered: 1 week ago

Question

★★★★★
A large country named H is considering an import tariff to protect the industry that produces good X. The world's excess supply curve is P=1000+3X. Country H's excess demand curve is P=8000-50X. a.)...

Answered: 1 week ago

Question

★★★★★
3. Visit the Center for Communication and Civic Engagement, which can be accessed by going to the books online resources for this chapter and clicking on WebLink 1.7. At this site, youll fi nd...

Answered: 1 week ago

Question

★★★★★
1. What would you say next to Toya? How would you meet your ethical responsibilities as her mentor and also adapt to her need for reassurance? Apply what youve learned in this chapter by analyzing...

Answered: 1 week ago

Question

★★★★★
4. Survey the last three editions of your campus newspaper for announcements of opportunities for community service and civic engagement. Can you identify one that interests you? If so, use the...

Answered: 1 week ago

Previous Question Next Question