Question: Multiple Choice Question What is the correlation of returns between stocks A and B based on the following information? The standard deviation of returns is

Multiple Choice Question What is the correlation of returns between stocks A and B based on the following information? The standard deviation of returns is 0.30 for A and 0.20 for B and the covariance between A and B's returns is 0.045. Multiple choice question. 0.06 0.45 1.33 0.75

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 Accounting Questions!

A ___________ is paid only if a well is dry. a. Bonus b. Dry-hole contribution c. Bottom-hole contribution d. Delay contribution e. None of these

a portfolio is composed of two stocks a and b stock a has standard deviation of return of 26% while stock b has a standard deviation of return 20% stock a comprises 60% of the portfolio while stock b...

I am currently confused about these questions. please help me to figure out these questions. thanks 1. You have the following information: Standard Deviation Note: In B., C., and D., the optimal...

Problem 8-1 Given the following information: Standard deviation for stock X= 12% Standard deviation for stock Y=20% Expected return for stock X=16% Expected return for stock Y=22% Correlation...

I am wanting to find the answer for the highlighted question 8-1 Given the following information: Standard deviation for stock X = 12 percent Standard deviation for stock Y = 20 percent Expected...

Please show full solution please and thanks. For the next two questions (31-32), ASSUME that the one year returns for RIM are still (20%, -40%, 130%, -25%, -55%). Assume also that you acquired shares...

(i) The cost of monitoring management is considered to be a (an): A bankruptcy cost B transaction cost C agency cost D institutional cost (1 mark) (ii) The restructuring of a corporation should be...

Consider a two-stock portfolio. Which one of the following statements about the expected return and risk is correct of the portfolio is correct? A). The expected return of the portfolio is less than...

Question 2: Given three securities: Expected Return Stock 1 Stock 2 0.20 Stock 3 0 .08 0.15 Standard Deviation 0.20 0.30 0.10 Correlation of Returns Stock 1 Stock 2 Stock 3 1.00 0.20 0.30 1. 000 .80...

Question 5 You have been approached by Onua Do Ltd who wants to know how their portfolio is fairing. The Company has over the years spread their funds in this order: 30% stock in A, 50% stock in B...

Consider the hospital that wishes to invest in the STP and the LTP such that the total expected return on the portfolio is 6%. How does the introduction of real assets alter the risk and composition...

Write a conformational structure for 1-bromo-3-chloro-5-fluorocyclohexane in which all the substituents are equatorial. Then write its structure after a ring flip.

You have reached the age of 46, which is a significant milestone in your life. You worked for a whole year in the year 2021, and you earned a year's salary. Your entire yearly gross compensation...

Which statement is true The beta of any portfolio must be 1 . 0 The expected rate kf return on any portfolio mist be positive

Discuss qualitative research designs in detail?