Question: The correlation between Bed Bath & Beyond Inc.'s (Ticker: BBBY) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.407330851. Bed Bath & Beyond Inc.

The correlation between Bed Bath & Beyond Inc.'s (Ticker: BBBY) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.407330851. Bed Bath & Beyond Inc. has a standard deviation of returns of 21.882141 percent while Diamondback Energy, Inc. has a standard deviation of returns of 16.795256 percent. Bed Bath & Beyond Inc. has an average return of 1.622639 percent while Diamondback Energy, Inc. has an average return of 1.190338 percent. Calculate the standard deviation of returns for a portfolio consisting of 56 percent Bed Bath & Beyond Inc. stock and 44 percent Diamondback Energy, Inc. stock.

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!

The correlation between Twitter, Inc.'s (Ticker: TWTR) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.327296456. Twitter, Inc. has a standard deviation of returns of 15.001814...

The correlation between The Goldman Sachs Group, Inc.'s (Ticker: GS) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.660962878. The Goldman Sachs Group, Inc. has a variance of...

You have been hired by a mutual fund called the KUBS Investment Fund to help them allocate their capital. The manager of this fund has heard that you have taken Investments class at KUBS, and hence...

The correlation between Johnson & Johnson's (Ticker: JNJ) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.450809547. Johnson & Johnson has a variance of returns of 0.0024674 while...

The correlation between xbox Corp.'s (Ticker: XBX) returns and Diamondback Energy, Inc.'s (Ticker: FANG) returns is 0.154118907. Xbox Corp. has a variance of returns of 4.5311749 while Diamondback...

The spreadsheet Q13_Q15 in the EXAM 3 (421) DATA file has daily returns for two stocks (Tootsie Rolls and Bed, Bath, and Beyond) for a one-year period, and eturns for the Fama-French Five Factor...

Someone told me D someone said A please help ASAP Suppose you intend to run a regression of the Selling Price of a Home (Price) on Lot Size (Lot), House Size (House), Number of Bedrooms (Bed), and...

2) The purpose of this question is to add the possibility of a non-fully invested portfolio (i.e., with a fraction in cash/risk-free asset) and/or leverage. The spreadsheet HW4_Q2 has data for 4...

Can I please have some help with the following, I need to solve theses questions using excel but am not sure about the formulas to use so I would just like a little assistance. evaluate the sale...

As discussed in Section 10.4, the Markowitz Model uses the variance of the portfolio as the measure of risk. However, variance includes deviations both below and above the mean return. Semivariance...

On June 2017, Mr. Areean's basic salary falls on Tk. 10,200 in the scale of 9,600-20012-12,000. His date of yearly increment is on 26 April. He received dearness allowance @ 10% of basic salary and...

10. Iodine is a solid which melts at 114 C. A glass jar containing iodine crystals and sand was placed on a window ledge. After a few days small crystals of iodine had appeared at the top of the jar....

Required information [ The following information applies to the questions displayed below. ] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to...