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

Question

1 Approved Answer

Suppose you have $20,000 total. You invest $15,000 in Stock X and the remainder in Stock Y State of the economy Probability Return on StockReturn

image text in transcribed
Suppose you have $20,000 total. You invest $15,000 in Stock X and the remainder in Stock Y State of the economy Probability Return on StockReturn on Stock Y Recession Normal Boom 0.1 0.6 0.3 496 | 12% 9%17% 996 17% 27% What will be the standard deviation on your portfolio? a. 6.1196 O b. 21.59% c. 14.36% 0 d. 12.17%

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

How To Trade In Stocks

How To Trade In Stocks

Authors: Jesse Livermore

1st Edition

0071469796, 9780071469791

More Books

Students also viewed these Finance questions

Question

★★★★★
Writing Improvement Exercise: Purging Empty Words Your Task. Revise the following to eliminate empty words and saying the obvious. a. Our next meeting is scheduled in the month of July. b. We plan to...

Answered: 1 week ago

Question

★★★★★
A stock has a beta of 1.06, the expected return on the market is 10 percent, and the risk-free rate is 4.95 percent. What must the expected return on this stock be?

Answered: 1 week ago

Question

★★★★★
8. Interpersonal communication acts as a: (a) river of understanding (b) gulf of understanding (c) sea-shore of understanding (d) bridge of shared understanding

Answered: 1 week ago

Question

★★★★★
Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Direct labor and overhead are added to the product evenly...

Answered: 1 week ago

Question

★★★★★
You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm...

Answered: 1 week ago

Question

★★★★★
random questions. need your opinion. Let's practice that employer-centered mindset we talked about in the last module. What do you think it is like to be someone reading resumes, looking for someone...

Answered: 1 week ago

Question

★★★★★
On January 1, Year 1, Grapefruit Corporation purchased a machine for $40,500,000. Grapefruit's management expects to use the machine for 28,000 hours over the next six years. The estimated residual...

Answered: 1 week ago

Question

★★★★★
The account balances from the December 31, 2019, trial balance for Haman Accounting Services are shown below. HAMAN ACCOUNTING Trial Balance December 31, 2019 DEBIT CREDIT ACCOUNT NAME Cash 7,600...

Answered: 1 week ago

Question

★★★★★
Mason Company provided the following data for this year: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process...

Answered: 1 week ago

Question

★★★★★
By using the Euler-Lagrange method, and considering g = 1 and q2 = 0 as generalised coordinates, the inverted pendulum system in Fig. 2 can be described by: u= (M+m)e+be+ml cos(0) ml0 sin(0) 0=...

Answered: 1 week ago

Question

★★★★★
Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,000 cases at a budgeted price of $60...

Answered: 1 week ago

Previous Question Next Question