Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 05, 2024

The return on Visa stock has a standard deviation of 36% and the return on Walmart stock has a standard deviation of 24%. Their correlation

The return on Visa stock has a standard deviation of 36% and the return on Walmart stock has a standard deviation of 24%. Their correlation is 0.57.

If you invest 70% in Visa and 30% in Walmart, what is the variance of the portfolio?

What is the 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

Financial Instability Toolkit For Interpreting Boom And Bust Cycles

Authors: V. D'Apice, G. Ferri

1st Edition

023024811X, 9780230248113

More Books

Students also viewed these Finance questions

Question

★★★★★

Berger, a firefighter, responded to a chemical boil- over at Lipsons chemical manufacturing plant, the boil- over having been caused by Lipsons negligence. When Berger arrived on the scene, he asked...

Answered: 1 week ago

Question

★★★★★

Let X have a binomial distribution with parameters n = 25 and p. Calculate each of the following probabilities using the normal approximation (with the continuity correction) for the cases p = .5,...

Answered: 1 week ago

Question

★★★★★

3. Under what circumstances would a customer choose to make a booking: a. in person b. by telephone c. online?

Answered: 1 week ago

Question

★★★★★

Following is information for the Fulcrum Companys three business segments located in Europe. Fulcrums applicable tax rate for the segments is 30%, and its weighted average cost of capital for each...

Answered: 1 week ago

Question

★★★★★

The return on Visa stock has a standard deviation of 36% and the return on Walmart stock has a standard deviation of 24%. Their correlation is 0.57. If you invest 70% in Visa and 30% in Walmart, what...

Answered: 1 week ago

Question

★★★★★

class EBook { / / Constructor takes two arguments: / / * First arg is a string with the whole text of the book / / * Second arg is the number of characters contained in a single page of the book / /...

Answered: 1 week ago

Question

★★★★★

Instructions Read the Assignment Instructions: 1. Read a tutorial on how to create a bibliography, citations, and references. 2. Watch the videos below: Getting Started with Word Creating and Opening...

Answered: 1 week ago

Question

★★★★★

3.13 The reaction F + H H + HF is the rate-limiting elementary step in the overall reaction H + F 2 HF. This latter process is the key reaction in the HF chemical laser. The reaction proceeds through...

Answered: 1 week ago

Question

★★★★★

When you clean the data in a DataFrame, you first examine the data to see what needs to be done. Then, to start the cleaning process, you A drop columns that aren't needed, rename columns, and fix...

Answered: 1 week ago

Question

★★★★★

Question 1: Greater consumptionof alcohol leads tomore motorvehicle accidents and,thus,imposes costs onpeoplewho donot drinkanddrive. a) Illustrate the market for alcohol, labelling the demand...

Answered: 1 week ago

Question

★★★★★

5. Gricean Maxims (Textbook, Exercise 18) a. Explain, in terms of Grice's Maxims, the humor or strangeness of the following exchange between mother and child. The child has just finished eating a...

Answered: 1 week ago

Previous Question Next Question