Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We create a portfolio out of two types of shares. 'Sanchez Pic share prices showed 22 % staridard deviation based on historical data. The return

image text in transcribed
We create a portfolio out of two types of shares. 'Sanchez Pic share prices showed 22 % staridard deviation based on historical data. The return of 'Sanchez Pe! was 26%. "Sanchez shares represent 25% of our portfolio. The other share in our portfolio F RICK. Plc share that generated 15 % return in the past with 16% standard deviation. The covariance of the shares is -2,3936 %. What is the standard deviation of our portfolio? (Give the answer in number format with 4 decimals. Eg: 1242% should be given as 0.1242 ) Answer What is the return of our portfolio? Give the aswer in number format with 4 decimals. Eg: 1242% should be given as 0.1242)

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

How To Understand Business Finance

Authors: Bob Cinnamon, Brian Helweg-Larsen

2nd Edition

0749460202, 978-0749460204

More Books

Students also viewed these Finance questions

Question

Explain the pages in white the expert taxes

Answered: 1 week ago