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

Question

1 Approved Answer

You invest 65% of your money in Stock A and the rest in Stock B. The variance of annual returns is 47% for Stock A

image text in transcribed
You invest 65% of your money in Stock A and the rest in Stock B. The variance of annual returns is 47% for Stock A and 40% for Stock B. The correlation between the two stocks is -0.1. What is the standard deviation of annual returns for the combination of the two stocks? Goput three decimal places - for example, write 39.6% as .396. Answer: Check

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 Entrepreneur's Growth Startup Handbook 7 Secrets To Venture Funding And Successful Growth

The Entrepreneur's Growth Startup Handbook 7 Secrets To Venture Funding And Successful Growth

Authors: David N. Feldman

1st Edition

1118445651, 978-1118445655

More Books

Students also viewed these Finance questions

Question

★★★★★
Consider the following accounts: a. Notes Receivable b. Common Stock c. Prepaid Insurance d. Notes Payable e. Rent Revenue f. Taxes Payable g. Rent Expense h. Furniture i. Dividends j. Unearned...

Answered: 1 week ago

Question

★★★★★
If I have source code linked to DataBase via Web Service, can I link it to DataBase again with Web Service again without changing or removing the application from the stores?

Answered: 1 week ago

Question

★★★★★
=+ (a) Show that T(") is uniformly distributed over the n! permutations. (b) Show that P[Y ,, = r] =1/n, 1 r n. (c) Show that Y, is measurable o(T(")) for k n.

Answered: 1 week ago

Question

★★★★★
You have the following information for Goodspeed Diamonds. Goodspeed Diamonds uses the periodic method of accounting for its inventory transactions. Goodspeed only carries one brand and size of...

Answered: 1 week ago

Question

★★★★★
Haggrun Co has two contracts in progress, the details of which are as follows. Happy (profitable) Grumpy (loss-making) $000 $000 Total contract revenue 300 300 Costs incurred to date 90 150 Estimated...

Answered: 1 week ago

Question

★★★★★
Help Micro, an accrual basis corporation, reported $523,100 net income before tax on its financial statements prepared in accordance with GAAP. Micro's records reveal the following information: oints...

Answered: 1 week ago

Question

★★★★★
ZARA, a Spanish fashion giant, has redefined fast fashion. Founded in 1 9 7 5 by Amancio Ortega, ZARA boasts over 2 , 0 0 0 stores in 9 6 countries, a testament to its rapid global expansion. Their...

Answered: 1 week ago

Question

★★★★★
JOHOR BARU: Fresh graduates face new challenges and stiff competition looking for jobs in the coming years due to the economic downturn caused by the Covid-19 pandemic. Universiti Teknologi Malaysia...

Answered: 1 week ago

Question

★★★★★
A 6000-lb weight is being pushed up an inclined surface. The weight is to accelerate from a zero velocity to a velocity of 5 ft/s in 0.5 s. The coefficient of friction between the weight and inclined...

Answered: 1 week ago

Question

★★★★★
Data given: Country A: n:1000 , X mean: 19.900, S2:5000, S:70.71 Country B: n:1500 , X mean: 20.200, S2:6400, S:80 (a) Consider whether the hypothesis that the average family income of country A is...

Answered: 1 week ago

Question

★★★★★
Enter the following trial balance into the chart of accounts: Account DR CR Cash 25,000 Vehicle net 74,000 Equipment net 7,500 Loan 50,000 Enter the following journal entries: sales of services for...

Answered: 1 week ago

Question

★★★★★
2. Develop a persuasive topic and thesis

Answered: 1 week ago

Question

★★★★★
1. Define the goals of persuasive speaking

Answered: 1 week ago

Question

★★★★★
4. Explain three forms of rhetorical proof: ethos, logos, and pathos

Answered: 1 week ago

Previous Question Next Question