Question: Please answer question 4-6 please and thank you :) QUESTION 4 Calculate the expected return portfolio that comprises of 50% ABC Inc (E(R) = 14%)

Please answer question 4-6 please and thank you :)

QUESTION 4 Calculate the expected return portfolio that comprises of 50% ABC Inc (E(R) = 14%) and 50% XYZ inc. (E(R)=10% )

A. 14% B. 10% C. 13% D. 12% 10 points

QUESTION 5 Calculate the std deviation of portfolio that comprises of 50% ABC Inc (Stdev = 42%) and 50% XYZ inc. (Stdev=31% ) when correlation between the two is 0.1.

A. 36.5% B. 42% C. 27.32% D. 31% 10 points

QUESTION 6 Using information from questions 4 and 5. For what weight of ABC inc will the portfolio have minimum variance?

A. 40% B. 66% C. 50% D. 34%

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!