Question: 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

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 .6. If Emily invests 40% money in VZ and 60% in ANT, what is the standard deviation of her portfolio?

23.68%

17.24%

21.47%

35.62%

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!

Course: Financial Management Principles Topic: Risk and Return Please can you answer the questions below. 1.Jackson has returns of 18%, -7%, -14%, and 10%, on his stock investment What is the...

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. 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...

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...

The expected return on VZ next year is 1 2 % with a standard deviation of 2 0 % . The expected return on ANT next year is 2 4 % with a standard deviation of 3 0 % . The correlation between the two...

08-1 Homework - Answered. Due in 4 days 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...

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...

The expected return on VZ next year is 12% with a standard deviation of 9%. The expected return on ANT next year is 5% with a standard deviation of 28%. The correlation between the two stocks is 0.3...

In this assignment you will write a program that will simulate a storage area with collections of items. Items can be added, removed, and the user can check the value of an item. This assignment does...

Dallas and Weiss formed a partnership to manage rental properties, by investing $132,000 and $198,000, respectively. During its first year, the partnership recorded profit of $451,000. Required:...

Which province does not have a provincial sales tax? A ) Quebec B ) Ontario C ) Alberta D ) British Columbia

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...