Question 5 1 pts An investor would like to construct a portfolio of two stocks, Apple...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 5 1 pts An investor would like to construct a portfolio of two stocks, Apple and Microsoft. The daily return rates and variances are given in the table: Apple Microsoft Expected Return 0.3% 0.2% Variance 0.08% 0.03% If the investor would like to put 30% of his investment on Apple and the rest on Microsoft, what is the corresponding variance it achieves given that the correlation of two stocks is 0.3? O 0.028% O 0.022% O 0.015% O 0.23% Question 5 1 pts An investor would like to construct a portfolio of two stocks, Apple and Microsoft. The daily return rates and variances are given in the table: Apple Microsoft Expected Return 0.3% 0.2% Variance 0.08% 0.03% If the investor would like to put 30% of his investment on Apple and the rest on Microsoft, what is the corresponding variance it achieves given that the correlation of two stocks is 0.3? O 0.028% O 0.022% O 0.015% O 0.23%
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Are the statements in (a) and (b) below saying the same thing? (Hint: think about the tradeoffs between concerns of intra- and intergenerational equity.) (a) Sustainability is principally about...
-
The management of Sewell Company asks you, as the company accountant, to explain (a) The concept of reasonable assurance in internal control and (b) The importance of the human factor in internal...
-
The convenience of eating. Privitera and Zuraikat (2014) conducted a study to test whether the proximity of food influences consumption. They placed a bowl of popcorn or apple slices in a container...
-
How is the average rate of return computed for capital investment analysis, assuming that the effect of straight-line depreciation on the amount of the investment is considered?
-
Williams Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A...
-
Provide a critical analysis using Porter s Five Forces Model by taking a company of your choice.
-
Imagine that you graduate from college and your first employer offers a retirement fund that is optional for you to join. After one year on the job, you can contribute a monthly sum to the fund and...
-
The average FICO score in the United States is about 692. Whatis the APR rate offered by the bank to the average customer?
-
With the following information below construct a future state value stream map after waste has been eliminated. Current State Value Stream Map (VSM) The current state VSM for the Import Parts...
-
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
-
Determine the equivalent uniform annual cost of a process which will involve an initial outlay of $70,000 followed by costs of $8,000 in year 1, $9,000 in year 2, and amounts increasing by $1,000 per...
-
The Catcher in the Rye by J. D. Salinger If you really want to hear about it, the first thing you'll probably want to know is where I was born, an what my lousy childhood was like, and how my parents...
-
Why in your opinion did Jims accountant recommend the average cost method and what difference is there with the three other methods? Explain the main characteristics of each method of valuation of...
-
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
-
In early 2006, the Bausch & Lomb Company halted shipments of its ReNu contact lens product and recalled from retailers any unsold containers of its contact lens solution. The contact lens cleaning...
-
Microsoft, Inc., recognizes revenue from its licensed software products at the time of sale or time of installation. Despite receiving such revenue in cash, Microsoft defers the recognition of a...
-
In September 2015, Boeing agreed to terms to sell 300 planes to China in one of the largest long-term airline contracts ever signed. With contracts to sell a plane, a company such as Boeing would...
Study smarter with the SolutionInn App