Question: 1: Let's consider two different stocks. JFE has a standard deviation of 0.17 and JFQA has a standard deviation of 0.41. If we purchased a

1: Let's consider two different stocks. JFE has a standard deviation of 0.17 and JFQA has a standard deviation of 0.41. If we purchased a portfolio by purchasing 964 of JFE stock and 688 of JFQA stock, calculate the portfolios standard deviation if the two stocks have a correlation of 0.17. Present your answer in decimal format and round your answer to threedecimal places.

2: Let's say that you found that XYZ has a standard deviation of 0.30 and ABC has a standard deviation of 0.4. If we purchased a portfolio by purchasing $250 of XYZ stock and $750 of ABC stock, fill out the following formulas for the portfolios variance if the two stocks have a correlation of 0.25. Use XYZ as stock 1, fill out the formula exactly in the order shown, and input calculated numbers (not formulas or fractions) for any calculations you need to perform, rounded to three decimal places.

3: Youre trying to calculate the standard deviation of stock RFS. You believe that RFS has a 26% chance of great performance over the next year, in which case it will generate a 35% stock return. You believe that there is a 19% chance that RFS will have good performance, and generate a return of 23%. You believe there is a 27% chance that RFS will have OK performance, and generate a return of 12%, and you believe there is a 28% chance that RFS will have poor performance, and generate a negative return = -8%. The risk free rate is 5%. What is the standard deviation of returns for RFS? Present your answer in decimal format and round your answer to three decimal places.

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