Enter your answers below. E(r) = 8.15 Correct response: 8.15% Std. Dev. = 6.79 Correct response:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Enter your answers below. E(r) = 8.15 Correct response: 8.15% Std. Dev. = 6.79 Correct response: 6.790.01% The investor decides to diversify by investing $5,000 in Gryphon stock and $8,000 in Royal stock which has an expected return of 7% and a standard deviation of 14.2%. The correlation coefficient for the two stocks' returns is 0.7. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Use the correct answers from the previous question. Enter your answers below. E(rp) = Number % Std. Dev Number % Enter your answers below. E(r) = 8.15 Correct response: 8.15% Std. Dev. = 6.79 Correct response: 6.790.01% The investor decides to diversify by investing $5,000 in Gryphon stock and $8,000 in Royal stock which has an expected return of 7% and a standard deviation of 14.2%. The correlation coefficient for the two stocks' returns is 0.7. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Use the correct answers from the previous question. Enter your answers below. E(rp) = Number % Std. Dev Number %
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Prepare journal entries to record the following grant-related transactions of an enterprise fund activity. Explain how these transactions should be reported in the enterprise funds financial...
-
Refer to Exhibits 20.3 and 20.4. Compute the ratios for Apple in Exhibit 20.9. Check your answers against those provided in Exhibit 20.10.
-
Pianos Unlimited sells pianos to customers. The company contracts with a supplier who provides it with replacement piano keys. There is an agreement that Pianos Unlimited is not required to provide...
-
Figure 1-2 shows that developments in IT affect both an organizations strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on...
-
1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next year. Calculate the EFN for the...
-
The direct labor (DL) price variance for Ivanhoe Manufacturers is $15840 unfavorable. The standard number of hours worked was 12400 and the standard rate per hour for direct labor was $16. If the...
-
ABC Co. purchased XYZ Co. on January 1, 2020. ABC Co. uses the equity method to account for its investment in its subsidiary. The excess of investment cost over book value was allocated as follows:...
-
It is possible to achieve a weightless condition for a limited time in an airplane by flying in a circular arc above the earth (like a rainbow). If the plane flies at $650 \mathrm{mph}$, what should...
-
A 2 in. sch 40 pipe carries a $35^{\circ} \mathrm{API}$ distillate at $50^{\circ} \mathrm{F}(\mathrm{SG}=0.85)$. The flow rate is measured by an orifice meter, which has a diameter of $1.5...
-
A 4 in. sch 80 pipe carries water from a storage tank on top of a hill to a plant at the bottom of the hill. The pipe is inclined at an angle of $20^{\circ}$ to the horizontal. An orifice meter with...
-
A tank that is vented to the atmosphere contains a liquid with a density of $0.9 \mathrm{~g} / \mathrm{cm}^{3}$. A dip tube inserted into the top of the tank extends to a point $1 \mathrm{ft}$ from...
-
The flow rate in a $1.5 \mathrm{in}$. ID line can vary from 100 to $1000 \mathrm{bbl} /$ day, and you must install an orifice meter to measure it. If you use a differential pressure (DP) cell with a...
-
Alpha Company owns 80% of Bravo. During the year, Alpha generates net income of $225,000 and has 200,000 shares of stock outstanding. Bravo generates adjusted net income of $80,000 and has 60.000...
-
Define a traverse in Surveying?
-
Whistle-blowers often question themselves as to whether they are doing the right thing. Terms such as snitch and tattletale are often associated with an individual who exposes wrongdoing. Do you...
-
The Claremont Corporation invests its excess cash in low-risk, dividend-paying equity securities until such funds are needed to support operations. At the beginning of the year, the companys...
-
The 2015 annual report of Bristol-Myers Squibb (BMS) reveals that the company maintains a large investment in available-for-sale securities: Did the companys available-for-sale securities experience...
Study smarter with the SolutionInn App