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

Question

1 Approved Answer

The expected returns for ABC Company and XYZ Company are 12 percent and 9 percent, respectively. The standard deviation is 20 percent for ABC and

The expected returns for ABC Company and XYZ Company are 12 percent and 9 percent, respectively. The standard deviation is 20 percent for ABC and 15 percent for XYZ. What is the portfolio standard deviation if one-third of the portfolio is in ABC and the two securities have perfect positive correlation?

A. 16.67% B. 10.00% C. 2.78% D. 1.00%

Please answer without using Excel

Many thanks!

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

Renewable Energy Finance Theory And Practice

Renewable Energy Finance Theory And Practice

Authors: Santosh Raikar, Seabron Adamson

1st Edition

0128164417, 9780128164419

More Books

Students also viewed these Finance questions

Question

★★★★★
Given the results from Problems 11.15 through 11.17, a. At the 0.05 level of significance, is there an effect due to factor A? b. At the 0.05 level of significance, is there an effect due to factor...

Answered: 1 week ago

Question

★★★★★
Five years before his death,Troy purchased a $5 million whole life insurance policy on his life and named his son, Don, the beneficiary. Shortly after purchase, Troy transferred the policy to an...

Answered: 1 week ago

Question

★★★★★
How do features of ones language shape the ability to think about certain concepts?

Answered: 1 week ago

Question

★★★★★
The trial balance of Roman Company at the end of its fiscal year, August 31, 2014, includes these accounts: Inventory $17,200; Purchases $149,000; Sales Revenue $190,000; Freight-In $5,000; Sales...

Answered: 1 week ago

Question

★★★★★
A company has $40 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 106,000 units annually. What is the price if a markup of 40% on total cost is used to...

Answered: 1 week ago

Question

★★★★★
For each bond drawn below, indicate the direction of bond polarity. Click in the blue box to toggle the arrow's direction; leave the box blank for a completely nonpolar bond. F -CH3 H3C- -NH Br- Mg-...

Answered: 1 week ago

Question

★★★★★
According to the predictions of quantum mechanics, could atomic clocks also have errors, and there would be no instrument at all to point out the errors, still due to quantum mechanical limitations?

Answered: 1 week ago

Question

★★★★★
250 mL of a waste solution obtained from the workshop of a goldsmith contains 0.1 M AgNO 3 and 0.1M AuCl . The solution was electrolyzed at 2V by passing current of 1A for 15 min .The metal/metals...

Answered: 1 week ago

Question

★★★★★
If you have two vibrating tuning forks that create a binaural beat of 440 Hz, would they be able to make a third tuning fork calibrated to 440 Hz resonate?

Answered: 1 week ago

Question

★★★★★
The following is a pedigree of PKU that is associated with a mutation in the PAH gene. Note: Filled squares or circles represent PKU patients. Assume that no other mutation arises within the...

Answered: 1 week ago

Question

★★★★★
The diagram below shows a signaling pathway that is activated following the binding of adrenaline to the -adrenergic receptor. The major steps of this signaling pathway are outlined below and also...

Answered: 1 week ago

Question

★★★★★
7. Illustrate examples of segmenting and actively managing a companys talent.

Answered: 1 week ago

Question

★★★★★
4. Give examples of five potential appraisal problems.

Answered: 1 week ago

Question

★★★★★
6. Explain how to install a performance management program.

Answered: 1 week ago

Previous Question Next Question