Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The correlation between xbox Corp.'s (Ticker: XBX) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.154118907. Xbox Corp. has a variance of returns of
The correlation between xbox Corp.'s (Ticker: XBX) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.154118907. Xbox Corp. has a variance of returns of 4.5311749 while Diamondback Energy, Inc. has a variance of returns of 0.0282081. Xbox Corp. has an average return of 28.781035 percent while Diamondback Energy, Inc. has an average return of 1.190338 percent. Calculate the standard deviation of returns for a portfolio consisting of 58 percent Xbox Corp. stock and 42 percent Diamondback Energy, Inc. stock.
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