Question: 24- What is the standard deviation on a portfolio that is invested 30% in stock A and 70% in stock B, given the following information?

24- What is the standard deviation on a portfolio that is invested 30% in stock A and 70% in stock B, given the following information?

Economic State Probability of State Return on Stock A Return on Stock B

Normal 80% 8% 6%

Boom 20% 15% 7%

A) 1.12%

B) 2.28%

C) 4.60%

D) 6.60%

E) 7.16%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1 Answer the following questions based upon the Five Below Annual Report Balance Sheet exercise. 1 point What was the amount of change in Total Current Assets for Five Below from January 30, 2021...

Q:

The figure shows a weldment just like that for Probs. 917 to 920 except there are four welds instead of two. Find the safe bending force F if the allowable shear stress in the welds isÏallow....

Q:

The figure shows a weldment just like that for Probs. 917 to 920 except there are four welds instead of two. Find the safe bending force F if the allowable shear stress in the welds isÏallow....

Q:

only number 24 23- Given the following information: The risk-free rate is 7%, the beta of stock A is 1.2, the beta of stock B is 0.7, the expected retum on stock A is 13.5%, and the expected return...

Q:

What is the standard deviation of a portfolio that is invested 30% in stock Q and 70% in stock R? State of Economy Boom Normal Return if State Occurs Probability of State of Economy Stock Stock R 15%...

Q:

What is the standard deviation of a portfolio that is invested 30% in stock Q and 70% in stock R? State of Economy Boom Normal Return if State Occurs Probability of State of Economy Stock Q Stock R...

Q:

21. What is the portfolio variance if 30% is invested in stock S and 70% is invested in stock T? State of Probability of Returns if State Occurs Economy State of Economy Stocks Stock T Boom 40% 12%...

Q:

Summer Saved What is the standard deviation of a portfolio that is invested 30% in stock Q and 70% in stock R? Probability of State of Economy State of Economy Boom Normal Return if State Occurs...

Q:

Find the return and the standard deviation of a portfolio that is invested 40% in stock A and 60% in stock B. State of Probability of Returns if State Occurs Economy State of Economy Stock A Stock B...

Q:

Find the return and the standard deviation of a portfolio that is invested 40% in stock A and 60% in stock B. State of Probability of Returns if State Occurs Economy State of Economy Stock A Stock B...

Q:

City Cabs charges a $1.75 pickup fee and $1.50 per mile traveled. Diego's fare for a cross-town cab ride is $19.75. How far did he travel in the cab?

Q:

Homework 9 Begin Date: 4/11/2018 12:00:00 AM-Due Date: 4/23/2018 11:59:00 PM End Date: 4/23/2018 11:59:00 PM (8%) Problem 4: A disk at rest experiences a constant angular acceleration for t= 15 s, at...

Q:

( 4 points ) Given x 2 + y 2 = 2 x + 4 y , d x d t = - 5 , find d y d t when x = 3 and y = 1 .

Q:

Menotti Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Menotti identified three overhead activities and related drivers. Budgeted information for the...

Q:

Wilson Center is a private not-for-profit voluntary health and welfare organization. During 2010, it received unrestricted pledges of $600,000, 60 percent of which were payable in 2010, with the...

Q:

Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it received unrestricted pledges of $600,000, 60 percent of which were payable in 2017, with the remainder...

Q:

A condensed income statement for the Music Division of Memphis Sounds Inc. for the year ended December 31, 2006, is as follows: Sales ............. $410,000 Cost of goods sold ........ 177,500 Gross...

Q:

A condensed income statement for the Golf Equipment Division of Scottish Pride Inc. for the year ended January 31, 2006, is as follows: Sales ............... $2,400,000 Cost of goods sold ............

Q:

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Q:

Using the above declarations, use a member of the Array class to change the order of the elements in the bArray array. The contents of the first cell should hold what was in the last cell. The second...

Q:

Create array declarations for the following problem specifications. a. An array to hold the names of five font strings. Initialize the array with your favorites. b. An array to hold 12 state names....

Q:

Explain the difference between the pass by reference and pass by value. When an array is sent to a method, which one is used?