The return on Samsung stock has a standard deviation of 39% and the return on Toyota stock

Fantastic news! We've Found the answer you've been seeking!

Question:

The return on Samsung stock has a standard deviation of 39% and the return on Toyota stock has a standard deviation of 15%. Their covariance is 0.0234.

a) If you invest 50% in Samsung and 50% in Toyota, what is the variance of the portfolio?

b) What is the standard deviation of the portfolio?

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

See More Books

Posted Date: Mar 02, 2024 11:23 AM

See More Questions

Appointments scheduling systems have a range of features that are useful for different types of appointments. Choose two types of appointments and pair each one with an appropriate scheduling system....
In your evaluation of the CDC website, what approach do suggest to share your ideas with others in your practice and organization about EBP that you identified on the website? What steps would you...
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
Assume a retailer has fixed costs of $10,000, a unitvariable cost of $25, and a 50% retail margin. How many units must be sold for her tobreak-even? If she has a target profit of $200,000, how many...
Collars A and B are connected by a 25-in.-long wire and can slide freely on frictionless rods. Determine the distances x and z for which the equilibrium of the system is maintained when P = 120 lb...
We noted that in the 1970s price floors on airline tickets caused wasteful increases in the quality of airline trips. Does the minimum wage cause wasteful increases in the quality of workers? If so,...
Assume the same data as given in problem 9, except the company expects the following production: Case A: 300 bbl per month Case B: 500 bbl per month REQUIRED: a. Determine the number of months needed...
A completed worksheet for The King Group is shown on the bottom of these two pages. INSTRUCTIONS 1. Record balances as of December 31, 2016, in the ledger accounts. 2. Journalize (use 3 as the page...
An airplane flies level in the + x direction 1 0 0 m above the ground at 1 6 0 m / s . the plane drops goods and supplies to some people on the ground. 1 . Draw the path the supplies would follow...
The OS Kernel means? a . . Modules of the OS running at all times to manage a computer. b . . Architecture dependent parts of the OS code.O c . . The parts of the OS services concerned with security....
A firm s strategy is concerned with management s choices about how to Group of answer choices all of the listed choices. attract and please customers to increase sales. grow the business by expanding...
Catching certain parts of what was said and paying attention for those parts to take what the speaker says, turn it around, and attack them with their words is: O Ambushing O Defensive Listening O...
In this experiment a student plotted a graph tan(0) versus current I as shown in figure. If the radius of the coil used is 7 cm and the number of turns N is 220. The calculated horizontal component...
What is a paradox? language that describes something as better or worse than it really is a statement that refers to something without mentioning it directly Something (such as a situation) that is...
If someone have access to the directory that you were not aware of. they find customer list and use it to their advantage . have they hacked your web server ? what challenges might you face if you...
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
The Covington Engine Company is considering opening a new plant facility to build truck engines. As part of a detailed analysis of the proposed facility, Covingtons management wants some information...
Calculate the MACRS depreciation schedule for a milling machine that costs $47,500 and has installation and shipping costs of $2,500. The milling machine is classified as a 7-year MACRS asset. The...
Given the following data for Profiteers, Inc., and the corresponding industry averages, perform a trend analysis of the return on investment and the return on stockholders equity. Plot the data and...
The figure below illustrates a thin plate of thickness $t$. An approximate displacement field, which accounts for displacements due to the weight of the plate, is given by a. Determine the...
For a plane stress problem, the strain components in the xyplane at a point $P$ are computed as: a. Compute the state of stress at this point if Young's modulus $E=2 \times 10^{11} \mathrm{~Pa}$...
The stress matrix at a particular point in a body is Determine the corresponding strain if $E=20 \times 10^{10} \mathrm{~Pa}$ and $v=0.3$. -2 1-3 [0] = 104 -345 107 Pa.

The return on Samsung stock has a standard deviation of 39% and the return on Toyota stock

Question:

Expert Answer:

Portfolio Variance and Standard Deviation a Portfolio Variance We can calculate th... View the full answer

Contemporary Financial Management

Students also viewed these finance questions