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

Question

1 Approved Answer

Your portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard

image text in transcribed
Your portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard deviation of 20% and the returns for stock B have a standard deviation of 10%. The correlation coefficient between A and B is 0.6. What is your portfolio standard deviation? Select one: o a. 9.8% O b. 10.2% c. 6.8% d. 11.2% e. 10.9%

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

The Bank Analysts Handbook Money Risk And Conjuring Tricks

The Bank Analysts Handbook Money Risk And Conjuring Tricks

Authors: Stephen M. Frost

1st Edition

0470091185, 978-0470091180

More Books

Students also viewed these Finance questions

Question

★★★★★
Draw the NMR spectra you expect for the following compounds. (a) (b) (c) (d) C(CH33 CH3O CH3 - Cl C-OCH CH - CH3

Answered: 1 week ago

Question

★★★★★
How do heredity and environment work togetherpg15

Answered: 1 week ago

Question

★★★★★
How, if at all, do you think this characteristic distinguishes you from other people?

Answered: 1 week ago

Question

★★★★★
Whiley Company issued a $ 100,000, five- year, 10 percent note to Security Company on January 2, 2014. Interest was to be paid annually each December 31. The stated rate of interest reflected the...

Answered: 1 week ago

Question

★★★★★
Your portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard deviation of 20% and the returns for stock B have a standard deviation...

Answered: 1 week ago

Question

★★★★★
In a conclusion Paragraph on the economic difficulties confronted by either oil-producing or the non-oil producing countries of the Middle East in recent decades. How do these relate to the "Arab...

Answered: 1 week ago

Question

★★★★★
The December cash records of Devin Insurance follow: (Click the icon to view the checkbook.) Devin's Cash account shows a balance of $16,320 at December 31. On December 31, Devin Insurance received...

Answered: 1 week ago

Question

★★★★★
SoGood Candy Company is evaluating its quarterly working capital needs. Using the information below, calcuate the working capital, permanent working capital, and temporary working capital needs for...

Answered: 1 week ago

Question

★★★★★
1. You are considering two possible marketing campaigns for a new product. The first marketing campaign requires an outlay next year of 2M, and then will pay 0.24M in all subsequent years. The second...

Answered: 1 week ago

Question

★★★★★
First consider whether a spinning cylinder could be an alternative for an airfoil in an aircraft. To study this, consider the classical symmetric NACA airfoil 0012. We discussed this airfoil in class...

Answered: 1 week ago

Question

★★★★★
QUESTION 2.21 (Comprehensive, inter vivos trust) During the 2021/22 tax year, Porter Chrystan created the Blind Trust, an inter vivos trust to provide services to his psychiatry practice. The net...

Answered: 1 week ago

Question

★★★★★
In the Meteor case study, identify how Sarahs traditional approach could be enhanced by using technology in the recruitment process.

Answered: 1 week ago

Question

★★★★★
Compare and contrast the human resources profession with that of law and medicine in respect of characteristics such as professional knowledge, ethical considerations, local expertise required,...

Answered: 1 week ago

Question

★★★★★
Relate how process reengineering is used to review and redesign HRM practices. page 680

Answered: 1 week ago

Previous Question Next Question