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

Question

1 Approved Answer

You invest 33% of your money in Stock A, 42% of your money in Stock B, and the rest in Stock C. The standard deviation

You invest 33% of your money in Stock A, 42% of your money in Stock B, and the rest in Stock C. The standard deviation of annual returns is 41% for Stock A, 51% for Stock B, and 52% for Stock C. If diversification does NOT help you, what is the standard deviation of annual returns for the portfolio? Write your answer out to three decimal places; for example, 39.6% is .396.

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

Step: 3

blur-text-image

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

The Regulation Of Mobile Money Law And Practice In Sub Saharan Africa

The Regulation Of Mobile Money Law And Practice In Sub Saharan Africa

Authors: Sunduzwayo Madise

1st Edition

3030138305,3030138313

More Books

Students also viewed these Finance questions

Question

★★★★★
Rus Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in 2011: a. Paid employees $54,200 in wages for the year; an additional...

Answered: 1 week ago

Question

★★★★★
Explain how the theories of quality management have added value to this contribution and to what extent.

Answered: 1 week ago

Question

★★★★★
Explain why Q > 1 indicates increasing returns to scale, where C Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
The following account balances were included in the trial balance of Twain Corporation at June 30, 2012. The Retained Earnings account had a balance of $337,000 at July 1, 2011. There are 80,000...

Answered: 1 week ago

Question

★★★★★
Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now....

Answered: 1 week ago

Question

★★★★★
A shoe factory produces shoes of two types. A pair of the first type requires 3 amount of leather, 2 amount of chemicals and 5 amount of labour, whereas for a pair of the 2nd type 2 amount of...

Answered: 1 week ago

Question

★★★★★
Debbie Adriano and Helenita Ruiz decided to form a partnership by combining the assets of their separate business. Adriano contributed the following assets to the partnership: cash 150,000; accounts...

Answered: 1 week ago

Question

★★★★★
Then, each student should comment on a post done by a classmate. Briefly describe what you learned from your classmate's post. Each reply should be a minimum of 50 words. Finally, the student who...

Answered: 1 week ago

Question

★★★★★
Answer in CCLL. Coral Coding Learning Language. 5.9 LAB: User-Defined Functions: Driving cost Define a function named Driving Cost with parameters driven Miles, milesPerGallon, and dollarsPerGallon,...

Answered: 1 week ago

Question

★★★★★
Sales and Advertising In 2010 Safaricom sacrificed a few operating income with the aid of increasing income and advertising prices by using 16.3% from monetary year 2009 stages. This become a...

Answered: 1 week ago

Question

★★★★★
The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2023: Account Debit Credit 101 119 Cash $ 7,400 Merchandise inventory 15,600 125...

Answered: 1 week ago

Previous Question Next Question