Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 11, 2024

You have two assets. Asset E(R) volatility A 10% 14.8% B 12.14% 34.2% correlation 0.2 You create a complete portfolio with both assets, by investing

You have two assets.

Asset	E(R)	volatility
A	10%	14.8%
B	12.14%	34.2%
correlation	0.2

You create a complete portfolio with both assets, by investing 31% in asset A.

What is the volatility of this portfolio?

Enter your answer as percentage with 2 decimals.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Financial Management Core Concepts

Authors: Raymond Brooks

3rd Edition

0133866742, 9780133866742

More Books

Students also viewed these Finance questions

Question

★★★★★

Multiple-Concept Example and Conceptual Example are pertinent to this problem. A bubble, located 0.200 m beneath the surface in a glass of beer, rises to the top. The air pressure at the top is 1.01 ...

Answered: 1 week ago

Question

★★★★★

(a) Write the equation for nitric acid (HNO 3 ) dissolving in water. (b) Write the equation for potassium carbonate dissolving in water.

Answered: 1 week ago

Question

★★★★★

2. Set standards for reinforcement so that all students will have a chance to be rewarded.

Answered: 1 week ago

Question

★★★★★

Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this...

Answered: 1 week ago

Question

★★★★★

Superwheels manufactures electronic components used in motor car assembly. The company has just received a special order from the Bumper Cars Group, to supply 520 NOS components over the next 12...

Answered: 1 week ago

Question

★★★★★

Evaluate the performance of Community National Bank using the data in Exhibit 3.2, 3.4 and 3.6. Community National Bank (CNB) is a typical small independent bank located in the US state of North...

Answered: 1 week ago

Question

★★★★★

A population of bacteria is modelled by the equation: P(t) = 2509.231: Where P(t) is the population of individuals, and t is the time measured in hours. A) What will the population of bacteria be...

Answered: 1 week ago

Question

★★★★★

Time left 1:11:34 Last season, Fairfield Farms sold strawberries as follows: 1501 boxes at $1.51 per pound in the early part of the season; 3598 boxes at $1.49 per pound at the height of the season;...

Answered: 1 week ago

Question

★★★★★

An object produced by some kind of machine turns out to be 10% defective. 10 items were taken randomly from the production for investigation. What is the probability that the object under...

Answered: 1 week ago

Question

★★★★★

According to Andy Challenger, senior vice president of outplacement firm ChallengerGray & Christmas, approximately how many job cuts haver companies attributed to Al since last May?

Answered: 1 week ago

Question

★★★★★

Use the Porter's five force model as a guide for the oncology industry. Firm level impact may include new business model, a shift in strategic positioning and changes in organizational structure,...

Answered: 1 week ago

Question

★★★★★

Xiaomi In 2010, Lei Jun founded Xiaomi, an electronics company based in Beijing, China. The electronics company started as software and created MIUI ROM based on Google's Android. The idea behind...

Answered: 1 week ago

Question

★★★★★

4.80 A market researcher wants to determine whether a new model of a personal computer that had been advertised on a late-night talk show had achieved more brand-name recognition among people who...

Answered: 1 week ago

Question

★★★★★

4.82 A restaurant manager receives occasional complaints about the quality of both the food and the service. The marginal probability distributions for the number of weekly complaints in each...

Answered: 1 week ago

Question

★★★★★

4.79 The accompanying table shows, for credit-card holders with one to three cards, the joint probabilities for number of cards owned (X) and number of credit purchases made in a week (Y). Number of...

Answered: 1 week ago

Previous Question Next Question