Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 22, 2024

Your portfolio is worth $250,000 and is invested for 14% in equity and the rest in bonds. The risk of equity (as a standard deviation)

Your portfolio is worth $250,000 and is invested for 14% in equity and the rest in bonds. The risk of equity (as a standard deviation) is 18.2% and the risk of bonds is 9.6%. The correlation between them is 0.8.

What is the risk of this portfolio? express your answer as a standard deviation and in percent without symbol

Please answer using formula and step by step instructions

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

Gapenskis Fundamentals Of Healthcare Finance

Authors: Paula H. Song, Kristin L. Reiter

3rd Edition

1567939759, 978-1567939750

More Books

Students also viewed these Finance questions

Question

★★★★★

Centralia Stores Inc. had property, plant, and equipment, net of accumulated depreciation, of $4,459,000 and intangible assets , net of accumulated amortization, of $673,000 at December 31, 2012. The...

Answered: 1 week ago

Question

★★★★★

Find all points where the partial derivatives of f(x, y) are both 0. f(x, y) = x 3 + 3x 2 + y 3 3y

Answered: 1 week ago

Question

★★★★★

Cars pass a certain street location according to a Poisson process with rate . A woman who wants to cross the street at that location waits until she can see that no cars will come by in the next T...

Answered: 1 week ago

Question

★★★★★

Equity Investments?Trading Swanson Company has the following securities in its trading portfolio of securities on December 31, 2010. (a) How much was Gator Co.?s share of Demo Co.?s net income for...

Answered: 1 week ago

Question

★★★★★

Tanner, Inc. reports the following information: Units produced 220 units Units sold 220 units Sales price $220 per unit Direct materials $31 per unit Direct labor $25 per unit Variable manufacturing...

Answered: 1 week ago

Question

★★★★★

Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity A 1,100 B 900 700 D 300 E 700 Unit Cost $ 28 33 4 9 32 Unit Selling...

Answered: 1 week ago

Question

★★★★★

Economic Order Quantity Self- Quiz Problem P=$5 D=20,000 O=$10 I=10% H= $.75 The hospital has only $90,000 budgeted for the product. What is the new price the hospital must negotiate with the vendor...

Answered: 1 week ago

Question

★★★★★

*Remember to read at least 50% of your classmates posts. 1. Use inference* to identify the possible strengths of the family. 2. Use inference* to identify the possible challenges of the family. 3....

Answered: 1 week ago

Question

★★★★★

A catalog company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of time...

Answered: 1 week ago

Question

★★★★★

Setting the objective You need to decide which model to manufacture. What do you ultimately need to find out before taking this decision? Which model is likely to sell more? Which model has a higher...

Answered: 1 week ago

Question

★★★★★

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 130 units from beginning inventory, 260 units from the March 5...

Answered: 1 week ago

Question

★★★★★

Watch the fi lm An Unfi nished Life. Analyze the communication among the four main characters, with a focus on the system within which they operate. What are the elements of the system? Identify two...

Answered: 1 week ago

Question

★★★★★

Visit the Center for Communication and Civic Engagement, which can be accessed by going to the books online resources for this chapter and clicking on WebLink 1.8. At this site, youll fi nd...

Answered: 1 week ago

Question

★★★★★

How do diff erent models represent the process of human communication?

Answered: 1 week ago

Previous Question Next Question