Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Toyota Corp's stock is $25 per share. Its expected return is 21% and variance is 13%. Honda Corp's stock is $20 per share. Its expected

Toyota Corp's stock is $25 per share. Its expected return is 21% and variance is 13%. Honda Corp's stock is $20 per share. Its expected return is 18% and variance is 7%. Benz Corp's stock is $40 per share. Its expected return is 12% and variance 6%. The covariance between Toyota and Honda is 0.06. What would be the standard deviation of a portfolio consisting of 50% Toyota and 50% Honda? Place your answer in decimal form, for example, as 0.14256 and not in percent form such as 14.256%

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

Business Forecasting

Authors: John E. Hanke, Dean Wichern

9th edition

132301202, 978-0132301206

More Books

Students also viewed these Finance questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago