Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The covariance between JetBlue Airways Corporation's (Ticker: JBLU) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.010272727. JetBlue Airways Corporation has a variance of

The covariance between JetBlue Airways Corporation's (Ticker: JBLU) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.010272727. JetBlue Airways Corporation has a variance of returns of 0.0126412 while Diamondback Energy, Inc. has a variance of returns of 0.0282081. JetBlue Airways Corporation has an average return of 0.927114 percent while Diamondback Energy, Inc. has an average return of 1.190338 percent. Calculate the standard deviation of returns for a portfolio consisting of 41 percent JetBlue Airways Corporation stock and 59 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

Mein Ultimativer Weihnachts Planer

Authors: Zizo Nimane

1st Edition

B0CM2J8GTG

More Books

Students also viewed these Finance questions

Question

Explain the hierarchy of needs theory.

Answered: 1 week ago