Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 14, 2020

What is the standard deviation of a portfolio's returns if the mean return is 15%, the variance of returns is 184, and there are three

What is the standard deviation of a portfolio's returns if the mean return is 15%, the variance of returns is 184, and there are three stocks in the portfolio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

In the problem the given data is the mean and the variance No... 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

Step: 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

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

9th Edition

73530700, 978-0073530703

More Books

Students also viewed these Finance questions

Question

★★★★★

What is the standard deviation of a sampling distribution called?

Answered: 1 week ago

Question

★★★★★

What is the standard deviation of each stock? Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3% 1 .7RM + eA RB = 22% 1 1.2RM + eB M...

Answered: 1 week ago

Question

★★★★★

What is the standard deviation of a random variable q with the following probability distribution: Value of q Probability 0 ...........0.25 1 ...........0.25 2 ...........0.50

Answered: 1 week ago

Question

★★★★★

Colors and More is considering replacing the equipment it uses to produce crayons. The equipment would cost $1.37 million, have a 12-year life, and lower manufacturing costs by an estimated $304,000...

Answered: 1 week ago

Question

★★★★★

Based on the material presented in the chapter, what sort of environmental conditions, institutional agendas and technology trends support the emergence of the cybercorp?

Answered: 1 week ago

Question

★★★★★

Identify a conflict (actual or potential) in your clinical area, and explain how either problem resolution or negotiation could be used to resolve it. AppendixLO1

Answered: 1 week ago

Question

★★★★★

3. For older students, give families a list of due dates for the major assignments, along with tips about how to encourage quality work by pacing the effortavoiding last-minute panic. Some schools...

Answered: 1 week ago

Question

★★★★★

On November 12, 2013, Josselin Inc. purchased a new front-end loader for $275,000 cash. Management estimated that the loader would have a useful life of 10 years and a residual value of $25,000. Near...

Answered: 1 week ago

Question

★★★★★

Refer the exhibit write Cisco IOS commands in empty blanks to perform the basic a switch configuration. a) Set switch device name as STAFF. (1 Mark) Switch (config)#[1]-- b) Set password for all...

Answered: 1 week ago

Question

★★★★★

The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019: $ $ Land and buildings 151,000 Motor vehicles at cost 60,000 Accumulated depreciation on motor vehicle (1...

Answered: 1 week ago

Question

★★★★★

Solomon, Inc. is preparing budgets for the quarter ending Sep 30. Budgeted sales for the next five months are: Jun 12,000 units Jul 15,000 units Aug 20,000 units Sep 25,000 units Oct 20,000 units Nov...

Answered: 1 week ago

Question

★★★★★

Below are summary cash flow statements for three roughly equal-sized companies. ($ millions) A B C Net cash flows from operating activities (312 ) (312 ) 324 Net cash used in investing activities...

Answered: 1 week ago

Question

★★★★★

You are a Chartered Certified Accountant and the newly appointed Internal Auditor of a company that is experiencing financial difficulties. As a condition for obtaining bank loans, the company has...

Answered: 1 week ago

Question

★★★★★

The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents five months' rent paid on December 1. The adjusting entry required on December 31 is...

Answered: 1 week ago

Question

★★★★★

What are some benefits of social networking? Select all that apply. Responses can introduce you to potential romantic partners can introduce you to potential romantic partners a boss may hear about...

Answered: 1 week ago

Question

★★★★★

Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours....

Answered: 1 week ago

Question

★★★★★

1 . Phillip bought a new car in March 2 0 2 1 . Which of the following statements is correct? ( i ) Phillip took a loan from Shady Loans ( Pty ) Ltd ( Shady Loans ) , to pay for repairs to the car....

Answered: 1 week ago

Question

★★★★★

Evenflow Power Co. is considering a new project that is a little riskier than the current operations of the company. Thus, management has decided to add an additional 1.5% to the company's overall...

Answered: 1 week ago

Question

★★★★★

You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in...

Answered: 1 week ago

Question

★★★★★

The DuPont formula defines the net return on shareholders equity as a function of the following components: Operating margin. Asset turnover. Interest burden. Financial leverage. Income tax...

Answered: 1 week ago

Question

★★★★★

Would you expect a $1 increase in a call options exercise price to lead to a decrease in the options value of more or less than $1?

Answered: 1 week ago

Question

★★★★★

A study by Rikkers et al. (1978) involved a prospective randomized surgical trial that compared cirrhotic patients who had bled from use of either a nonselective shunt (a standard operation) or a...

Answered: 1 week ago

Question

★★★★★

The data set for this problem derives from the posture measurement study described in the main body of this chapter. Here we consider the data on shoulder flexion (SF) for 19 subjects that were each...

Answered: 1 week ago

Question

★★★★★

A study by Holder, Plikaytis, and Carlone (1996) compared two laboratory protocols designed to measure antibody levels in an enzyme-linked immunosorbent assay (ELISA) for Streptococcus pneumoniae....

Answered: 1 week ago

Previous Question Next Question