Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 02, 2023

You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 13.50%, while Circumbendibus Wheels has volatility 21.20%. The correlation between the

You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 13.50%, while Circumbendibus Wheels has volatility 21.20%. The correlation between the two shares' returns is 0.01. You have allocated 72.70% of your money to Tinkle.com. What is the volatility of your portfolio?

Step by Step Solution

★★★★★

3.48 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

Assuming that the returns of Tinklecom and Circumbendibus Wheels are normall... 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

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

3rd Edition

013350767X, 978-0133507676

More Books

Students also viewed these Accounting questions

Question

★★★★★

You have invested in a business that proudly reports that it is profitable. Your investment of $5000 has produced a profit of $300. The managers think that if you leave your $5000 invested with them,...

Answered: 1 week ago

Question

★★★★★

You have invested in a stock with some systematic risk. It has a beta of 1.05. The current anticipated market portfolio return for the upcoming year is 16 percent, and the anticipated market risk...

Answered: 1 week ago

Question

★★★★★

You have invested in a Treasury Inflation Protected Security (TIPS) that has a par value of $1,000 and a coupon rate of 3.07%. You paid par value for the security, and it matures in two years. Assume...

Answered: 1 week ago

Question

★★★★★

In Problems 4352, graph each system of linear inequalities. State whether the graph is bounded or unbounded, and label the corner points. 0 x y 0 x + y = 1 x + y 7 2x + y 10

Answered: 1 week ago

Question

★★★★★

GripRite manufactures high-grade golf grips. Variance data for the polymer material used in the grips for the most recent month of operations follows: Materials price variance ... $3,150 U Materials...

Answered: 1 week ago

Question

★★★★★

Rewrite the attribute grammar of Figure 4.14 in the form of an ad hoc tree traversal consisting of mutually recursive subroutines in your favorite programming language. Keep the symbol table in a...

Answered: 1 week ago

Question

★★★★★

Let S(t) denote the price of a security at time t. A popular model for the process {S(t), t 0} supposes that the price remains unchanged until a shock occurs, at which time the price is multiplied by...

Answered: 1 week ago

Question

★★★★★

For each of the following independent situations, identify the relevant objective(s) of financial reporting that the company could be overlooking. Discuss each of these objectives. 1. The president...

Answered: 1 week ago

Question

★★★★★

Mary Rose, Maricel, and Vanessa formed a partnership on October 1, 20x4. They agreed that Mary Rose will contribute office equipment with a total fair value of P40,000; Maricel will contribute...

Answered: 1 week ago

Question

★★★★★

Queensland Electronics Company manufactures two large-screen television models, the Novelle, which has been produced for 10 years and sells for $910, and the Zodiac, a new model introduced in early...

Answered: 1 week ago

Question

★★★★★

Consider a bond that pays interest on 14 June and 14 December, and matures on 14 June 2023. The coupon on the bond is 5.6%, and the bond uses the 30/360 daycount convention. Calculate the full price,...

Answered: 1 week ago

Question

★★★★★

An astronaut with a total mass M (including his equipment) has been accidentally separated from his shuttle and is at rest with respect to the ship at a distance d away. His tank contains a mass m,...

Answered: 1 week ago

Question

★★★★★

As the new production manager of a small manufacturing plant in Tennessee, you've been charged with making beneficial changes to the production line. After interviewing nearly all of the workers,...

Answered: 1 week ago

Question

★★★★★

Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpike. In preparing his bid for the job, Bob Reep, founder and president of...

Answered: 1 week ago

Question

★★★★★

A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $16 per hour. a. The worker's opportunity set in a given 24-hour period is illustrated below.What are...

Answered: 1 week ago

Question

★★★★★

Question 26 [2 points} Using expansionary policies to combat a recession would 0 increase a budget deficit. 0 increase a budget surplus. 0 decrease discretionary spending. 0 increase federal revenue....

Answered: 1 week ago

Question

★★★★★

The following type(s) of income must be included in an individual taxpayer's gross income: Group of answer choices A) personal services income, such as from employment. B) dividends received from...

Answered: 1 week ago

Question

★★★★★

The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...

Answered: 1 week ago

Question

★★★★★

In April 2013, Apple had cash of $39.14 billion, current assets of $63.34 billion, and current liabilities of $35.51 billion. It also had inventories of $1.25 billion. a. What was Apple's current...

Answered: 1 week ago

Question

★★★★★

What can you learn from the management's discussion in the financial statements or the notes to the financial statements?

Answered: 1 week ago

Question

★★★★★

Describe the steps involved in the CAPM approach to estimating the cost of equity.

Answered: 1 week ago

Question

★★★★★

Consider the market for auto insurance. Explain why insurers ask student drivers about their grades.

Answered: 1 week ago

Question

★★★★★

In Figure 9P-1, what is the dominant strategy for Player A? What is the dominant strategy for Player B?

Answered: 1 week ago

Question

★★★★★

Advertising often features testimonials from satisfied customers, who happily describe the characteristics of the goods or services they received. Why do advertisers use this technique rather than a...

Answered: 1 week ago

Previous Question Next Question