Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 06, 2024

Suppose you invest $10,000 into stock A, and $15,000 into stock B.Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4

Suppose you invest $10,000 into stock A, and $15,000 into stock B.Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

State Probability(State) Stock A Stock B

Boom 20% 0.18 -0.05

Normal 45% 0.06 0.15

Bust 15% -0.09 0.03

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 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

Public Finance and Public Policy

Authors: Jonathan Gruber

5th edition

1464143331, 978-1464143335

More Books

Students also viewed these Finance questions

Question

★★★★★

How are pilot tests and split messages used to determine the suitability of a message?

Answered: 1 week ago

Question

★★★★★

In the chaining technique in hashing, which of the following data structure is most suitable? A. Singly linear linked list B. Doubly linked list C. Tree D. Graph

Answered: 1 week ago

Question

★★★★★

Describe the components of identity.

Answered: 1 week ago

Question

★★★★★

On January 1, 2016, Bacco Company had a balance of $72,350 in its Delivery Equipment account. During 2016, Bacco purchased delivery equipment that cost $22,100. The balance in the Delivery Equipment...

Answered: 1 week ago

Question

★★★★★

Structuring a Make-or-Buy Problem Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to...

Answered: 1 week ago

Question

★★★★★

Brash Corporation initiated a new corporate strategy that fixes its annual dividend at $1.92 per share forever. If the risk-free rate is 4.8% and the risk premium on Brash's stock is 11.8%, what is...

Answered: 1 week ago

Question

★★★★★

At another local coffee shop, wait times for a cup of plain coffee are normally distributed with a mean of $125 seconds and a standard deviation of 22 seconds. What percentage of wait times for a cup...

Answered: 1 week ago

Question

★★★★★

Luisa treats rice and wheat as perfect complements and spends all her food budget of $24/wk on these foodstuffs. If rice costs $3/lb, draw Luisa's price-consumption curve for wheat. Instructions: 1....

Answered: 1 week ago

Question

★★★★★

QUESTION 7 Graph 10-3 P Social Cost P Supply (Private Cost) P Demand Q1 Q This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey...

Answered: 1 week ago

Question

★★★★★

Sky Castle Manufacturing Company has two service departments, human resources and office services. It also has two production departments, assembly and finishing. The following information is made...

Answered: 1 week ago

Question

★★★★★

1. Do you think that a company should primarily be valued relative to the global industry to which it belongs, or to other national companies listed in its domestic home market? 2. Describe indexes...

Answered: 1 week ago

Question

★★★★★

Jane was due to make loan payments of $ 1 1 5 4 eight months ago, $ 3 3 7 0 four month ago, and $ 8 8 8 in three months. Instead, she is to make a single payment today. If money is worth 5 . 1 % and...

Answered: 1 week ago

Question

★★★★★

How serious is the danger posed by employee d111g use? Oo you agree that there are important limits to the "prevention of harm argument for drug testing?

Answered: 1 week ago

Question

★★★★★

Do yoo agree that the central question regarding d'rug testing in employment is whether the information sought is job relevant? Are there other reasons for drug testing that don't tum on this issue?

Answered: 1 week ago

Question

★★★★★

Are you perooaded by OesJardiris and Duska's reasons for rejecting the job-performance argument for drug testing? Explain why or why noL

Answered: 1 week ago

Previous Question Next Question