Problem 9-12 Diversifying (LG9-4, LG9-5) Consider the characteristics of the following three stocks: Expected Return Standard...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6649607b9f12f_8596649607b48c78.jpg)
Transcribed Image Text:
Problem 9-12 Diversifying (LG9-4, LG9-5) Consider the characteristics of the following three stocks: Expected Return Standard Deviation Thumb Devices 15% 28% 13 13 25 26 Air Comfort Sport Garb The correlation between Thumb Devices and Air Comfort is -0.17. The correlation between Thumb Devices and Sport Garb is -0.14. The correlation between Air Comfort and Sport Garb is 0.80. Select only two stocks for your portfolio based on low correlation and low risk. Problem 9-12 Diversifying (LG9-4, LG9-5) Consider the characteristics of the following three stocks: Expected Return Standard Deviation Thumb Devices 15% 28% 13 13 25 26 Air Comfort Sport Garb The correlation between Thumb Devices and Air Comfort is -0.17. The correlation between Thumb Devices and Sport Garb is -0.14. The correlation between Air Comfort and Sport Garb is 0.80. Select only two stocks for your portfolio based on low correlation and low risk.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
CPA firm brings in a yoga instructor during the tax busy season to help relieve stress of the employees. Which is true about the CPA firm's ability to take a deduction for the yoga instructor's...
-
Compute dR/d from Equation 3-22 and show that setting dR/d = 0 gives = 45 for the maximum range. R= sin 20, 3-22
-
The Azuza Company is liquidating. After paying off all of its creditors, the company has \(\$ 1.5\) million to distribute between its preferred stockholders and its common stockholders. The aggregate...
-
Bank Reconciliation} Conway Company reported the following information: \section*{Required:} 1. Calculate the amount of outstanding cheques as of December 31. 2. Prepare the journal entries that...
-
Schank Marketing Research has just signed contracts to conduct studies for four clients. At present, three project managers are free for assignment to the tasks. Although all are capable of handling...
-
Sylvestor Systems borrows $ 6 1 , 0 0 0 cash on May 1 5 by signing a 6 0 - day, 5 % , $ 6 1 , 0 0 0 note. On what date does this note mature? 2 - a . Prepare the entry to record issuance of the note....
-
Find an equation of the tangent line to the graph of xe + y lnx 1 at (1,0) =
-
Kiyara ( single ) is a 5 0 percent shareholder of Guardian Corporation ( an S Corporation ) . Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $ 3 2 4 , 0 0 0 of...
-
what are five most important things about principles of marketing?
-
Brown pays $90,000 to the Tripper Sprung Partnership in exchange for 30% ownership. Before the admission of Brown, the other partners had the following capital accounts and profit and loss sharing...
-
Question 34 Great Products Inc. allocates Overhead to the Jobs using machine hours. Data for 2021 was as follows: Actual Overhead for the year Actual Machine Hours Worked Budgeted machine Hours...
-
Kent Company\'s accountant is preparing its June bank reconciliation and has collected the following data: Per Books Per Bank June 1 Balance $11,600 $10,000 June Deposits 24,600 21,200 June Checks...
-
Which kind of stock market analysis focuses on a company's traits such as revenues and earnings per share? Responses marginal analysis marginal analysis fundamental analysis fundamental analysis...
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
How should the general manager divide his or her time between monitoring current-year results and planning for the future?
-
What is a business model, and what are its key elements?
-
The adjusted trial balance for Phoenix Consultant Corporation at the end of its fiscal year is shown below. Prepare the required closing entries. Phoenix Consultant Corporation Trial Balance December...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App