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

Question

1 Approved Answer

The correlation between Alphabet inc's returns and Diamondback Energy, inc's (Ticker: FANG) returns is 0.401082038. Alphabet Inc. has a standard deviation of returns of 7.05311

image text in transcribed
The correlation between Alphabet inc's returns and Diamondback Energy, inc's (Ticker: FANG) returns is 0.401082038. Alphabet Inc. has a standard deviation of returns of 7.05311 percent while Diamondback Energy. Inc, has a standard deviation of returns of 16795256 percent. Alphabet Inc has an average monthly return of 2.109043 percent while Diarnondback Energy. Inc has an average monthly return of 1.190338 percent. Calculate the standard deviation of returns for a portfolio consisting of 52 percent Alphabet inc. stock and 48 percent Diarnondback Energy, Inc stock

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

Fundamentals Of Multinational Finance

Fundamentals Of Multinational Finance

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

3rd Edition

0321541642, 9780321541642

More Books

Students also viewed these Finance questions

Question

★★★★★
Human feet and legs store elastic energy when walking or running. They are not nearly as efficient at doing so as kangaroo legs, but the effect is significant nonetheless. If not for the storage of...

Answered: 1 week ago

Question

★★★★★
With reference to the out-patient visits to a hospital, we consider the following events: A: a patient is over 50 years of age; B: a patient is under 25 years of age; C: the condition of a patient...

Answered: 1 week ago

Question

★★★★★
An automobile accident investigator needs to determine the initial westerly velocity of a Jeep (m = 1720kg) that may have been speeding before colliding head-on with a Volkswagen (m = 1510 kg) that...

Answered: 1 week ago

Question

★★★★★
An investment of 20.000$ will create a perpetual after-tax cash flow of 2000$. The required rate of return is 8%. What is the investment profitability index? a)1.08 b)1.16 c)1.25

Answered: 1 week ago

Question

★★★★★
State FIVE (5) Advantages of a sole trader business and FIVE (5) Advantages of a limited liability company. (5 marks)

Answered: 1 week ago

Question

★★★★★
John at Tim's Toys was working on a custom-made miniature car for a customer. The job, BCB101, was started in March. At the end of March, the job cost sheet for BCB101 showed direct materials of...

Answered: 1 week ago

Question

★★★★★
Problem 3-13 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3] Superior Company provided the following data for the year ended December 31 (all raw...

Answered: 1 week ago

Question

★★★★★
The (?) question is either away from or toward the lake. 12 -1 1.0 The graph above illustrates your north-south distance in miles from the edge of a lake in hours from noon (where positive values...

Answered: 1 week ago

Question

★★★★★
A print shop is considering whether it should accept a special order to print 10,000 copies of an announcement. Below are the costs associated with this order: Paper cost: 10,000 sheets at $0.02 each...

Answered: 1 week ago

Question

★★★★★
hich of the following statements is false? Multiple Choice After rising from 83 billion in 2019, total training expenditures slightly declined to $82.5 billion in 2020. Average training expenditures...

Answered: 1 week ago

Question

★★★★★
3.80 Given P1A12 = 0.50, P1B1 uA12 = 0.40, and P1B1 uA22 = 0.70, what is the probability of P1A1 uB22?

Answered: 1 week ago

Question

★★★★★
Blue Star United, a major electronics distributor, has hired Southwest Forecasters, a market research firm, to predict the level of demand for its new product that combines cell phone and complete...

Answered: 1 week ago

Question

★★★★★
3.78 Given P1A12 = 0.40, P1B1 uA12 = 0.60, and P1B1 uA22 = 0.70, what is the probability of P1A1 uB12?

Answered: 1 week ago

Previous Question Next Question