Question: Please help answer B and C with steps for future reference. Stocks A and B have the following returns: a. What are the expected returns

Please help answer B and C with steps for future reference.

Stocks A and B have the following returns: a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B ? a. What are the expected returns of the two stocks? The expected return for stock A is (Round to three decimal places.) The expected return for stock B is (Round to three decimal places.) b. What are the standard deviations of the returns of the two stocks? The standard deviation of the return for stock A is (Round to four decimal places.)

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!

Please help me, I couldn't find any. 1) EXPECTED RETURN A stock's returns have the following distribution: Demand for the Probability of this Rate of Return If Company's Products Demand Occurring...

please help with b and c 1. (11 points) The table below presents the returns on stocks ABC and XYZ for a five-year period. Year 1 2 3 4 5 ABC 0.16 0.42 -0.02 -0.26 0.48 XYZ 0.12 0.62 -0.23 -0.62 0.52...

please help solve and show answers Consider the following information for stocks A,B, and C. The returns on the three stocks are positively correlated; but they are not perfectiy correlote (That is,...

12a) As the number of assets contained within an investment portfolio increases, say, from 3 to 10 assets, what typically occurs? (1) The level of total risk remains constant, but the proportion of...

please help H B D E F G 1 Valuation of Stocks and Corporations 2 3 Selected data for the Derby Corporation are shown below. Use the data to answer the following questions. 4 5 INPUTS (in millions)...

please help A B and C a. Given the following holding-period returns, , compute the average returns and the standard deviations for the Zemin Corporation and for the market. b. If Zemin's beta is 0.86...

I have completed this quiz and would like any additional support I can get reviewing my answers for this quiz. I did not answer one question at the very last section, and would like for tutor to...

Im so confused. Can someone please help me thanks 4. Problem 8.06 (Expected Returns) Stocks A and B have the following probability distributions of expected future returns: a. Calculate the expected...

9. The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates,...

3. Problem 8.06 (Expected Returns) eBook Problem Walk-Through Stocks A and B have the following probability distributions of expected future returns: (9%) 4 Probability 0.1 0.2 0,4 0.2 0.1 14 21 34...

What trade-offs exist between wood, plastic, and metal pallets?

Martinez Manufacturing Inc. showed the following costs for last month: Direct materials ...........$7,000 Direct labor .............. 3,000 Manufacturing overhead ......... 2,000 Selling expense...

A ball is thrown upward with an initial velocity of 2 5 m s . ( a ) Using approximate value of g = 1 0 m s 2 , what is the velocity of the ball 3 . 5 second after it is thrown? ( b ) At what time...

\f\f\fHo: MuDocide MuMildolmine rvalos de... H1: MuDocide MuMildolmine cacion d... PASO 2. uestreo a nicas de ... % PASO 3. U de M.. Z prueba t prueba de Bon... chi-cuadrada prueba ade rechazo: de...

1. What are the problems of managing data resources in a traditional file environment?

5-9 Hischornklinik Group is a leading private medical clinic group in Germany. It relies on information systems to operate 14 hospitals, as well as hundreds of specialist institutes. Demand for...

5-11 In this exercise, youll use software at various online travel sites to obtain pricing for total travel and lodging costs for a sales conference. EuroPlastiques is a leading EU plastics company....