Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

The following information about a two stock A and B. Portfolio Stock A Stock B Amount 20,000 30,000 Expected Return 12% 20% Standard Deviation 20%

The following information about a two stock A and B.

Portfolio

Stock A

Stock B

Amount

20,000

30,000

Expected Return

12%

20%

Standard Deviation

20%

30%

Correlation

0.25

1. Calculate the weight (W) for each stock. 2. What is the portfolio expected return? 3. Calculate the variance and standard deviation of the portfolio.

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

Recommended Textbook for

Offshore Finance And State Power

Authors: Andrea Binder

1st Edition

0192870122, 978-0192870124

More Books

Students also viewed these Finance questions

Question

★★★★★

Simon issues four-year bonds with a $50,000 par value on June 1, 2011, at a price of $47,974. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepare...

Answered: 1 week ago

Question

★★★★★

The manager of a highly automated plant that assembles desktop computers commented, 'Yield and mix variance information is irrelevant to my cost management decisions.' Give two possible reasons for...

Answered: 1 week ago

Question

★★★★★

When you are sat is fied with your experimental design, carry out the experiment. You will need to construct your list of colored words and a corresponding list of colored bars to use in the...

Answered: 1 week ago

Question

★★★★★

The following account titles and balances were taken from the adjusted trial balance of Brisco Farm Co. for 2012. The company uses the periodic inventory system. Account Title Balance Sales returns...

Answered: 1 week ago

Question

★★★★★

The following information about a two stock A and B. Portfolio Stock A Stock B Amount 20,000 30,000 Expected Return 12% 20% Standard Deviation 20% 30% Correlation 0.25 1. Calculate the weight (W) for...

Answered: 1 week ago

Question

★★★★★

Chuck, a single taxpayer, earns $75,000 in taxable income and$10,000 in interest from an investment in City of Heflin bonds.(Use the U.S tax rate schedule.)Required:How much federal tax will he o 2...

Answered: 1 week ago

Question

★★★★★

Display the following output with a square matrix of any odd dimension. a) Create a constant variable DIM and assign it any odd value >= 5 b) Iterate in both dimensions from 1 to DIM inclusive - X -...

Answered: 1 week ago

Question

★★★★★

Forecasts Company produces four products with a mixed model assembly line. Operates 12 hours per day for 250 days/yr. Products (Year) Z 1000 Y 3000 X 7000 . Determine mix schedule for a day. W 12000...

Answered: 1 week ago

Question

★★★★★

The CapSim Core Simulation is a simulation of running your own business summarize these numbers and their means Product Name Research & Development Performance Size Reliability Marketing Price Promo...

Answered: 1 week ago

Question

★★★★★

Define lambda functions and explain their use cases for creating small, anonymous functions.

Answered: 1 week ago

Question

★★★★★

The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $ 5 per unit on special risk insurance and $ 2 per unit on mortgages....

Answered: 1 week ago

Question

★★★★★

Develop a program for effectively managing diversity. page 303

Answered: 1 week ago

Question

★★★★★

List the common methods used in selecting human resources. page 239

Answered: 1 week ago

Question

★★★★★

Discuss how the particular characteristics of a job, organization, or applicant affect the utility of any test. page 233

Answered: 1 week ago

Previous Question Next Question