Answered step by step
Verified Expert Solution
Link Copied!

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

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

Corporate Finance Reader

Authors: Robert W. Kolb

2nd Edition

1878975536, 978-1878975539

More Books

Students also viewed these Finance questions