Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are an investor and own a portfolio consisting of 2 stocks. The percentage of the portfolio that is invested in the first stock is

image text in transcribed

You are an investor and own a portfolio consisting of 2 stocks. The percentage of the portfolio that is invested in the first stock is 13% and the percentage of the portfolio that is invested in the second stock is 87%. The risk-free rate is 1.38%, the expected return for the first stock is 5.23% and the expected return for the second stock is 9.44%. The standard deviation of the first stock is 13.93% and the standard deviation of the second stock is 11.26%. The correlation between the stocks is 36.00%. What is the expected return on the portfolio? Write as a percentage to two decimal places %. What is the variance of the portfolio? Write the answer as a number to four decimal places What is the standard deviation of the portfolio. Write the answer as a percentage to two decimal places % What is the Sharpe Ratio for this portfolio? Write as a percentage to two decimal places %

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

Elliot Wave Techniques Simplified How To Use The Probability Matrix To Profit On More Trades

Authors: Bennett A. McDowell

1st Edition

0071819304,0071819312

More Books

Students also viewed these Finance questions

Question

To find integral of sin(logx) .

Answered: 1 week ago