Question: Stock A Stock B Average return Ri 15% 25% Stdev i 10% 20% weight 40% 60% correl -0.70 -0.70 What is this 2-stock portolio's standard

Stock A Stock B
Average return Ri 15% 25%
Stdev i 10% 20%
weight 40% 60%
correl -0.70 -0.70

What is this 2-stock portolio's standard deviation is________%?

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!

Q:

Question 19 0 out of 5 points Stock: A B Avg Return R i 15% 10% Stdev i 9% 7% Weight w i 40% 60% Correl A,B -0.70 A portfolio manger created a 2-stock portfolio using a mix of Stock A and Stock B in...

Q:

BA 1605: Midterm Recap (Due: Feb. 27, 2015) Name _____________________________ 50 Student ID _____________________________ Section 01B 10:00~11:20 am Section 02B 01:00~02:20 pm [Questions 4 ~ 7] The...

Q:

I appreciate it if someone could help me to answer those questions. Question 1 3 pts Tased on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B...

Q:

I was able to figure most of it out, but need help with the last part of section E. and G. preferrably in excel. thank you 1 5 5 2 3 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 a. Use the...

Q:

Group: PERON A+ PERSON B +PERSON C 1- Introduction 2- Literature a. Definition of operation management b. Definition of operation strategy and why it is important c. Components of operations strategy...

Q:

uantitative Methods for MBAs Homework 6 Angelo Mele This homework tests your understanding of inference. Each question is worth 20 points. Please print this paper and answer the question in the...

Q:

Hoyt, Inc. has estimated current year sales (in millions) for the next four quarters. Q1 $240Q2 $250 Q3 $205 Q4 $350 ? Sales for the 1st quarter next year are projected to be $230.? Accounts...

Q:

Need help with screenshots one through 10 (1-10). All information needed to solve these problems can be found individually below, in each respective screenshot. The only thing you need to answer are...

Q:

Given the following information on a bond, Par value: $1000 Interest rate: 6% Coupon rate: 8% paid semiannually Years to maturity: 15 years, what is the expected price at the end of year 5? Select...

Q:

Characteristic Line and Security Market Line You are given the following set of data: Year 1 2 3 4 5 6 7 Historical Rates of Return NYSE Stock X -26.5% -23.0% 37.2 16.0 23.8 18.0 -7.2 6.0 6.6 10.6...

Q:

How does a metallic crystal respond to low applied loads?

Q:

A researcher conducts an independent-measures study comparing two treatments and reports the t statistic as t(25) = 2.071. a. How many individuals participated in the entire study? b. Using a...

Q:

QUESTION TWO ( 2 0 MARKS ) The following balances were taken from the final trial balance of Mossie Itd for the year ended 3 1 December 2 0 2 3 . \ table [ [ , Rand ] , [ Revenue , 6 0 0 0 0 0 ] , [...

Q:

GRADUATI For decorative Para usor C History Bookmarks Profiles Tab Window Help 53% Sat 12:31 PM Angel Do Homework - Section 3.8 Ho x $1st & 2nd Derivatives Calcula...