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

Question

1 Approved Answer

Question 3 6 pts A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 25% while

image text in transcribed

Question 3 6 pts A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a standard deviation of return of 13%. The correlation coefficient between the returns on A and B is 0.68. Stock A comprises 41% of the portfolio while stock B comprises the rest. What is the standard deviation of the return on this portfolio? Enter answer in percents, to two 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_2

Step: 3

blur-text-image_3

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

Bakers Health Care Finance Basic Tools For Nonfinancial Managers

Bakers Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Thomas K. Ross

6th Edition

1284233162, 978-1284233162

More Books

Students also viewed these Finance questions

Question

★★★★★
Examine the residual plots produced by Excel for the Salaries multiple regression model that you built for Develop Your Skills 14.1, Exercise 2, which included all possible explanatory variables. Are...

Answered: 1 week ago

Question

★★★★★
(IRR), and payback of a series of cash flows be able to choose between alternative projects on the basis of NPV, IRR and payback? p-968

Answered: 1 week ago

Question

★★★★★
2.33 Old Faithful The data below are 30 waiting times between eruptions of the Old Faithful geyser in Yellowstone National Park. a. Calculate the range. b. Use the range approximation to approximate...

Answered: 1 week ago

Question

★★★★★
(1) What is meant by the term distribution policy? How have dividend payouts versus stock repurchases changed over time? (2) The terms irrelevance,dividend preference, or Bird-in-the-hand, and tax...

Answered: 1 week ago

Question

★★★★★
Describe how you would denormalize the model that you created in exercise E . Draw the new physical model on the basis of your suggested changes. How would performance be affected by your suggestions?

Answered: 1 week ago

Question

★★★★★
Problem 7-7 Bond Yields [LO2] West Corp. issued 10-year bonds two years ago at a coupon rate of 81 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par...

Answered: 1 week ago

Question

★★★★★
Summarize the discussion with your field instructor by addressing the following: Propose the new policy that, if implemented, might more comprehensively meet the needs of the clients that come to the...

Answered: 1 week ago

Question

★★★★★
QUESTION 2 Fattah is charged RM15,000 for his medical eye treatment that he received from Southern Medical Centre. He intended to withdraw from his EPF Account 2 to pay for the medical expenses. His...

Answered: 1 week ago

Question

★★★★★
7. Using the stress strain curve below, determine the following (21) Property Young's Modulus (4) Value Yield Strength (3) Ultimate Tensile Strength (2) Total Strain at Failure (2) Plastic Strain at...

Answered: 1 week ago

Question

★★★★★
Janie is a seventh grader who has taken al poll on how much time each student in her class spends watching television. She would like to input the information and subsequently create a chart. What...

Answered: 1 week ago

Question

★★★★★
Assignment 1 (10%) This assignment relates to the following Course Learning Requirements: CLR 1: Discuss the development of management and the challenges, skills, and attributes of managers CLR 3:...

Answered: 1 week ago

Question

★★★★★
Have you laid out a timeframe for refreshing the data regularly?

Answered: 1 week ago

Question

★★★★★
Have you laid out the information as clearly as possible?

Answered: 1 week ago

Question

★★★★★
Have you tested your findings with those closest to the market?

Answered: 1 week ago

Previous Question Next Question