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

Question

1 Approved Answer

The return on XYZ stock has a standard deviation of 19% and the return on ABC stock has a standard deviation of 16%. Their correlation

image text in transcribed

The return on XYZ stock has a standard deviation of 19% and the return on ABC stock has a standard deviation of 16%. Their correlation coefficient is 0.25. If you invest 40% in XYZ and 60% in ABC, what comes closest to the standard deviation of the portfolio? O 14.5% O 36.7% 0 1.9% O 13.7%

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_2

Step: 3

blur-text-image_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

Managerial Finance

Managerial Finance

Authors: John Fred Weston, Eugene F. Brigham, John Boyle, Robin John Limmack

1st Edition

0039101975, 978-0039101978

More Books

Students also viewed these Finance questions

Question

★★★★★
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $15,000 at the end of each year for the next 10 years. You expect to...

Answered: 1 week ago

Question

★★★★★
identify problems that may occur when the responsibility for staff development is shared

Answered: 1 week ago

Question

★★★★★
Suppose a fitted model based on a training set is ???? = 17.8 + 2.3????. What can you conclude when the fitted model on the validation set is (a) ???? = 3.2 + 5.6????? (b) ???? = 16.9 + 2.5?????

Answered: 1 week ago

Question

★★★★★
Yuka consumes mangos and oranges. She is given four mangos and three oranges. She can buy or sell mangos for $ 2 each. Similarly, she can buy or sell an orange for $ 1. If Yuka has no other source of...

Answered: 1 week ago

Question

★★★★★
business decisions have ethical implications, and should such a decisions be seen as unthical, it can then have various implications for the company. As a manager, business decisions form part of...

Answered: 1 week ago

Question

★★★★★
1. Line L has the equations 3: = t. y 2 2t. 2 = 3, t E R. Find a line that intersects line L and passes through the origin

Answered: 1 week ago

Question

★★★★★
The adjusted trial balance for Happ Company follows. Adjusted Trial Balance December 31 Account Title Accounts receivable Accumulated depreciation-Trucks Accounts payable Salaries payable Number 101...

Answered: 1 week ago

Question

★★★★★
Larkspur Corporation borrowed $78,000 on November 1, 2025, by signing a $79,755, 3-month, zero-interest-bearing note. Prepare Larkspur's November 1, 2025, entry; the December 31, 2025, annual...

Answered: 1 week ago

Question

★★★★★
Waterway, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Gary King, president of Waterway, Inc., has gathered the following cost information from the...

Answered: 1 week ago

Question

★★★★★
MOLLY DISTRIBUTORS Adjusted Trial Balance December 31 Credit Debit $30,200 Cash 110,200 Accounts Receivable 94,000 Inventory 2,400 Prepaid Insurance 6,400 Supplies 85,000 Delivery Equipment...

Answered: 1 week ago

Question

★★★★★
A rescued whale is released into the ocean 400 meters due east of a coast guard station. The whale swims directly away from the shore. coast guard station point of release whale (a) Which of the...

Answered: 1 week ago

Question

★★★★★
What are the goals?

Answered: 1 week ago

Question

★★★★★
Are there other relevant characteristics about your key public?

Answered: 1 week ago

Question

★★★★★
What information remains to be obtained?

Answered: 1 week ago

Previous Question Next Question