Stocks A and B have the following returns: (Click on the following icon in order to...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66490b2066c8f_00866490b2008416.jpg)
Transcribed Image Text:
Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Question Viewer Stock A 0.08 Stock B 0.07 0.06 0.03 0.13 0.06 -0.04 0.09 0.02 -0.02 5 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 55stock A and 45Stock B? 12345 Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Question Viewer Stock A 0.08 Stock B 0.07 0.06 0.03 0.13 0.06 -0.04 0.09 0.02 -0.02 5 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 55stock A and 45Stock B? 12345
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
expand on each of the following Introduction : Cognitive theories of emotion emphasize the role of cognitive processes, such as perception, interpretation, and appraisal, in the experience and...
-
1. If you deposit $685 into an account paying 17.52% annualinterest compounded monthly, how many years until there is $40,185in the account?2. What is the value today of receiving a single payment 2...
-
We have covered a lot of information in our time together about psychology class. Please share with the group what you found to be the most important or most relevant thing(s) that you learned from...
-
Convert 1 3 3 7 9 . 0 0 Joule to its equivalent number of Btu. ( express result with two decimals followed by units )
-
Which one of the following statements is false? a. Companies that use the Balanced Scorecard do not need to focus on financial performance. b. The Balanced Scorecard is not an exact formula that can...
-
For the following reactions, determine the maximum or minimum temperatures of the reactor effluents assuming: (a) Complete conversion (b) Equilibrium conversion The reactants are available in...
-
Why should one ignore sunk costs in decision making?
-
FIFO and LIFO?Periodic Tom Brady Shop began operations on January 2, 2010. The following stock record card for footballs was taken from the records at the end of the year. A physical inventory on...
-
Could you work this problem in an excel spreadsheet? 5-12 Present Value of an Annuity Due: If the present value of an ordinary, 6-year anuity is $8,500 and interest rates are 9.5 percent, what's the...
-
Nelson Mandela said. "Sport has the power to change the world. It has the power to inspire, it has the power to unite people in a way that little else does. It speaks to youth in a language they...
-
a) What are the indices for the directions indicated the two vectors in Figure a (below)? b) Determine the indices for the directions shown in the cubic unit cell shown in Figure b? c) Determine the...
-
Shares in India's Tata Motorsfellas much as 6.6% as volatile markets raised concerns that investors may reject its huge $885 million rights issue. Shares in India'stop vehicle maker have taken a...
-
4. When properly aligned, gears transmit torques to a shaft. When designing a bioreactor for cell culture, you have been assigned the task of designing the shafts inside the bioreactor. A motor...
-
The hypothesis testing procedures for comparing means of INDEPENDENT samples would be appropriate for comparing?
-
December 20, 20XX STA 48 STA 1 21 STA 1 STA 48 69 1 STA 21 STA 69 December 20, 20XX STA 69 STA 21 48 Traverse of a 4-sided Polygon HI 1.38 HCR VCR SD 0:00:00 89:40:28 96.655 180:00:00 270:19:32...
-
For a long-term employee who is covered by a defined benefit plan, the highest retirement income will be obtained if his/her retirement income is based on initial average pay. random year annual pay....
-
A fast-food restaurant averages 150 customers per hour. The average processing time per customer is 90 seconds. a. Determine how many cash registers the restaurant should have if it wishes to...
-
Darden Restaurants Contingent Liabilities The following excerpts are from the footnotes of Darden Restaurants financial statements of May 29, 2005: In March 2003 and March 2002, two purported class...
-
Current Ratio Loan Provision Assume that you are the controller of a small, growing sporting goods company. The prospects for your firm in the future are quite good; but like many other firms, it has...
-
Alternative Payment Options Kathy Clark owns a small company that makes ice machines for restaurants and food-service facilities. Kathy knows a great deal about producing ice machines but is less...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App