# Question

A portfolio is composed of two stocks. The proportion of each stock, their expected values, and standard deviations are listed next.

For each of the following coefficients of correlation, calculate the expected value and standard deviation of the portfolio:

a. ρ = .5

b. ρ = .2

c. ρ =0

For each of the following coefficients of correlation, calculate the expected value and standard deviation of the portfolio:

a. ρ = .5

b. ρ = .2

c. ρ =0

## Answer to relevant Questions

An investor is given the following information about the returns on two stocks:a. If he is most interested in maximizing his returns, which stock should he choose?b. If he is most interested in minimizing his risk, which ...Given a binomial random variable with n = 6 and p = .2, use the formula to find the following probabilities.a. P(X = 2)b. P(X = 3)c. P(X = 5)Several books teach blackjack players the “basic strategy,” which increases the probability of winning any hand to 50%. Repeat Exercise, assuming the player plays the basic strategy.In Exercise, in the game of blackjack ...The number of accidents that occur at a busy intersection is Poisson distributed with a mean of 3.5 per week. Find the probability of the following events.a. No accidents in one weekb. Five or more accidents in one weekc. ...Cars arriving for gasoline at a particular gas station follow a Poisson distribution with a mean of 5 per hour.a. Determine the probability that over the next hour only one car will arrive.b. Compute the probability that in ...Post your question

0