Question: The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected returm on AAPL next vear is 24% with

The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected returm on AAPL next vear is 24% with a standard deviation of 30%. The corelation between the two stocks is .6. if james makes equal investments in MSFT and AAPL, what is the expected retum on his portfolio.

a. 21.45%

b. 4.60%

c. 25.00%

d. 15.00%

nh Question 7 1 points W

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 answer fast The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected returm on AAPL next vear is 24% with a standard deviation of 30%. The corelation between...

4) The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in...

pleases answer 1,2,3,4 2. The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes...

plesase answer it 2. The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal...

2. The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in...

The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in MSFT...

The expected return on MSFT next year is 1 2 % with a standard deviation of 2 0 % . The expected return on AAPL next year is 2 4 % with a standard deviation of 3 0 % . If James makes equal...

The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected 4) return on AAPL next year is 24% with a standard deviation of 30%. The correlation between the two stocks...

You are planning to purchase your first home five years from today. The required down payment will be $50,000. You currently have $20,000. but you plan to contribute $500 each quarter to a special...

A producer of picture frames uses a tracking signal with limits of ±4 to decide whether a forecast should be reviewed. Given historical information for the past four weeks, compute the...

Why does ASPE not require disclosure of earnings per share? Select answer from the options below It would not be meaningful for a company with few shareholders. The cost of calculating this number...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

3 Rather than dressing it up as marketing experience, might there be an honest way to use your restaurant experience to your advantage here?

5. Your father asks if youll be coming home for the holidays this year. A. I have a life, you know. B. Ill do the best I can. C. I can visit for three days, December 27 to 29.

B Will you follow your friends suggestion to use vague expressions like team player? In what ways might you use more precise terms to describe yourself?