Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 19, 2024

Toyota has an expected return of 21 %, and a variance of 0.010 . Honda has an expected return of 18 %, and a variance

Toyota has an expected return of21%, and a variance of0.010. Honda has an expected return of18%, and a variance of0.006. The covariance between Toyota and Honda is0.08. Using these data, calculate the variance of a portfolio consisting of 50% Toyota and 50% Honda.

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

Personal Finance

Personal Finance

Authors: Jeff Madura

5th edition

132994348, 978-0132994347

More Books

Students also viewed these Finance questions

Question

Please provide excel spreadsheet detailing how you got to the multiple choice answer. I am trying to get ahead and understand each of the practiceproblems in prep for a exam so it would be very...

Answered: 1 week ago

Question

11. Consider a portfolio consisting of the following three stocks: Correlation with Portfolio Weight Volatility the Market Portfolio HEC Corp 0.25 12% 0.4 Green Midget 0.35 25% 0.6 AliveAndWell 0.4...

Answered: 1 week ago

Question

help mi with my questions 21. There are three assets, A, B and C, where A is the market portfolio and C is the risk-free asset. The return on the market has a mean of 12% and a standard deviation of...

Answered: 1 week ago

Question

★★★★★

The mid-day wind speed, in knots, at a coastal resort is normally distributed with mean 12.8 and standard deviation . a. Given that 15% of the recorded wind speeds are less than 10 knots, find the...

Answered: 1 week ago

Question

★★★★★

Amber and Zack Wilson are continuing their analysis of the company's position and believe the company will need to borrow $15,000 in order to expand operations. They consult Rivers Nation Bank and...

Answered: 1 week ago

Question

★★★★★

In Exercises 1 through 14, approximate the given integral using (a) The trapezoidal rule (b) Simpsons rule with the specified number of subintervals. + x dx; n = 4 1

Answered: 1 week ago

Question

★★★★★

To what extent do you agree with the fundamental cognitive assumption that illogical or irrational thinking underlies psychological problems?

Answered: 1 week ago

Question

★★★★★

Howser Companys fixed overhead costs are $4 per unit, and its variable overhead costs are $8 per unit. In the first month of operations, 50,000 units are produced, and 48,000 units are sold. Write a...

Answered: 1 week ago

Question

★★★★★

The stack that based on linked list has Select one: a . No data attributes b . Three data attributes c . One data attribute d . Two data attributes

Answered: 1 week ago

Question

★★★★★

A business acquires some new equipment, incurring a total cost of \( 33,000\). This amount is made up of purchase price \( 31,180\), delivery costs \( 570\), installation charges \( 440\), and one...

Answered: 1 week ago

Question

★★★★★

The pulse rates of 150 randomly selected adult males vary from a low of 41 bpm to a high of 117 bpm. Find the minimum sample size required to estimate the mean pulse rate of adult males. Assume that...

Answered: 1 week ago

Question

★★★★★

Bill Gate Company incurred costs for materials and conversion in the amount of P 45,000 and P 4,860 respectively. As of the same date, the work in process inventory in units of P 6,000 is 40%...

Answered: 1 week ago

Question

★★★★★

Budget cash receipts for the months of January, February, and March. Budgeted sales, all on account: November $ 65,000 December January February March 60,000 82,000 70,000 90,000 Collection of...

Answered: 1 week ago

Question

★★★★★

Given the following encoding rule for each letter: n 010 110 k 101 Suppose Alice want to encrypt and send "ok" (110 101)_to Bob using a one-time pad 101 111, so Bob will get the ciphertext as 011...

Answered: 1 week ago

Question

★★★★★

1.The standard price per unit is; Material 6 kg @Rp750; Labor 10 Hours @Rp480; BOP on the basis of 70% of Working Hours with a rate per working hour @Rp250 for variable BOP and fixed BOP budgeted is...

Answered: 1 week ago

Question

★★★★★

Developer Company is constructing a 2-Tower residential condominium. Tower 1 sells 20 units while tower 2 sells 30 units. Both towers will share in the common amenities and occupy the same land area....

Answered: 1 week ago

Question

★★★★★

Question 14 (Mandatory) (10 points) In a Chapter 7 bankruptcy proceeding, debts owed are are settled and paid according to an order of priority. A Debtor who has filed a Chapter 7 proceeding has the...

Answered: 1 week ago

Question

★★★★★

What mass of H2 will be produced when 122 g of Zn are reacted? Zn(s) + 2HCl(aq) ( ZnCl2(aq) + H2(g)

Answered: 1 week ago

Question

★★★★★

2 Access and read the Uebergang article. Then discuss the following: (a) The research suggests that quite a significant number of ASX listed companies fall into the distressed category. It is...

Answered: 1 week ago

Question

★★★★★

LO2: Identify the main ratios used to analyse profitability, and apply these ratios to a business

Answered: 1 week ago

Question

★★★★★

LO1: Explain the importance of ratios in analysing financial performance, identify the possible bases for comparison, and identify the key aspects of financial performance and financial position that...

Answered: 1 week ago

Previous Question Next Question