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

Question

1 Approved Answer

What is the standard deviation of a portfolio of two stocks given the following datas Stock A has a standard deviation of 34.5% Stock Bhas

image text in transcribed
What is the standard deviation of a portfolio of two stocks given the following datas Stock A has a standard deviation of 34.5% Stock Bhas a standard deviation of 16.0%. The portfolio contains 70% of stock A, and the correlation coefficient between the two stocks is -0.212 19.7% 21.4% 23,6% 18.2%

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

Stocks Bonds And Taxes A Comprehensive Handbook And Investment Guide For Everybody

Stocks Bonds And Taxes A Comprehensive Handbook And Investment Guide For Everybody

Authors: Phillip B. Chute

1st Edition

1732885532, 978-1732885530

More Books

Students also viewed these Finance questions

Question

★★★★★
CPT Inc. is a local manufacturer of conveyor systems. Last year, CPT sold over $ 2 million worth of conveyor systems that netted the company $ 100,000 in profits. Raw materials and labor are CPTs...

Answered: 1 week ago

Question

★★★★★
A 8.00.kg block of ice, released from rest at the top of a 1.50-m-long frictionless ramp, slides downhill, reaching a speed of 2.50 m/s at the bottom. (a) What is the angle between the ramp and the...

Answered: 1 week ago

Question

★★★★★
=+1. What does the managerial philosophy known as scientific management emphasize?

Answered: 1 week ago

Question

★★★★★
A vending machine at City Airport dispenses hot coffee, hot chocolate, or hot tea, in a constant service time of 20 seconds. Customers arrive at the vending machine at a mean rate of 60 per hour...

Answered: 1 week ago

Question

★★★★★
What is the standard deviation of a portfolio of two stocks given the following datas Stock A has a standard deviation of 34.5% Stock Bhas a standard deviation of 16.0%. The portfolio contains 70% of...

Answered: 1 week ago

Question

★★★★★
Problem 21-1 Pharoah Leasing Company agrees to lease machinery to Novak Corporation on January 1, 2017. The following information relates to the lease agreement. 1. The term of the lease is 7 years...

Answered: 1 week ago

Question

★★★★★
Of the four graphs below, select the one that is misleading. line chart of average monthly temperature, with months January through December on the x-axis and Temperature on the y-axis. Y- axis is...

Answered: 1 week ago

Question

★★★★★
Where do low cost production expert CEOs tend to operate? A. MC = MR B. TR = VC C. TR = TC D. AC = MC E. Minimum MC F. MR = 0

Answered: 1 week ago

Question

★★★★★
At the beginning of June, you had 15 units on the assembly line. At the end of June, there were 16 units on the assembly line. During the month, you completed 50 units. How many equivalent completed...

Answered: 1 week ago

Question

★★★★★
2. N 2 +3H 2 =2NH 3 1.00 mole of N 2 was reacted with 3.00 moles of H 2 in the reaction above to produce 28.0g of NH 3 . What was the percentage yield of this reaction?

Answered: 1 week ago

Question

★★★★★
At the end of October, Margaretlamented the company's situation: in the middle of production of Sheffield-T's most popular long-sleeve T-shirt, the company ran out of its usual collars, purchased...

Answered: 1 week ago

Question

★★★★★
Would you want to be a virtual employee? Do you think there are any disadvantages of working virtually?

Answered: 1 week ago

Question

★★★★★
Give examples of the macroenvironment. How do they apply to the healthcare industry?

Answered: 1 week ago

Question

★★★★★
What is a SWOT analysis? How would that process be beneficial to a healthcare organization?

Answered: 1 week ago

Previous Question Next Question