Question: The expected return on VZ next year is 1 2 % with a standard deviation of 2 0 % . The expected return on ANT

The expected return on VZ next year is 12% with a standard deviation of 20%. The expected return on ANT next year is 24% with a standard deviation of 30%. The correlation between the two stocks is 1.0.
If Emily makes equal investments in VZ and ANT, what is the standard deviation of her portfolio?

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:

An analyst estimated that stock A will have an expected return of 11.1% next year. He also estimated that the standard deviation of this stock will be 21.7% next year. Assuming that the risk-free...

Q:

An analyst estimated that stock A will have an expected return of 11.1% next year. He also estimated that the standard deviation of this stock will be 21.7% next year. Assuming that the risk-free...

Q:

An analyst estimated that stock A will have an expected return of 14.6% next year. He also estimated that the standard deviation of this stock will be 15.9% next year. Assuming that the risk-free...

Q:

An analyst estimated that stock A will have an expected return of 13.8% next year. He also estimated that the standard deviation of this stock will be 23.6% next year. Assuming that the risk-free...

Q:

An analyst estimated that stock A will have an expected return of 17.7% next year. He also estimated that the standard deviation of this stock will be 19.3% next year. Assuming that the risk-free...

Q:

The expected return on VZ next year is 12% with a standard deviation of 20%. The expected return on ANT next year is 24% with a standard deviation of 30%. The correlation between the two stocks is...

Q:

1. Jackson has returns of 18%, -7%, -14%, and 10%, on his stock investment What is the arithmetic average return on his stock? What is the geometric average return on his stock? 2. Your portfolio...

Q:

The expected return on VZ next year is 6% with a standard deviation of 10%. The expected return on ANT next year is 21% with a standard deviation of 20%. The correlation between the two stocks is 0.8...

Q:

The expected return on VZ next year is 9% with a standard deviation of 12%. The expected return on ANT next year is 18% with a standard deviation of 7%. The correlation between the two stocks is 0.4....

Q:

The expected return on VZ next year is 12% with a standard deviation of 20%. The expected return on ANT next year is 24% with a standard deviation of 30%. The correlation between the two stocks is.5....

Q:

Find the the outward flux of the field F=(3xy- x/1+y^2)i + (e^x + tan^-1 y) j across the cardioid r= a(1+cos(theta)), a>0.

Q:

The owner of a convenience store is considering adding a take-out sandwich section to her offerings. The new activity will occupy 25% of the space currently being rented out to a milk tea stall for...

Q:

Identity a common method of ensuring some stability in the secondary market for a new issue. Placing a holing period on trading Festricting share sales thiting the shaves in Be OTC market only...

Q:

provide and discuss in detail literature review step by step under Strategies to tedureduce cost on maintenance standby equipment ( DC motors ) in a production plant

Q:

How is the education level required for a position established?

Q:

Why is a job analysis important?

Q:

What, if anything, does a job incumbent contribute to a position description?