Question: What is the standard deviation of the returns on a $30,000 portfolio which consists of stocks S and T? Stock S is valued at $12,000.

What is the standard deviation of the returns on a $30,000 portfolio which consists of stocks S and T? Stock S is valued at $12,000. Note that the E(Portfolio -0.0643, or 6.43%. State of Economy Boom Normal Recession Probability of State of Economy 5% 85% 10% Returns if State Occurs Stocks StockT 11% 5% 896 6% -596 8%

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!

Determine the reactions at pins A and B of the frame needed to support the 200-lb load. The pulley at C has a radius of 0.5 ft. The pulley at D has a radius of 0.25 ft. 4 ft 60% 30 30 3 ft B

QUESTION 1 What is the standard deviation of the retums on a 5500 000 portfolio which consists of socks A and B The market value of Stock Ais $200 000 Return if State Occurs State of Economy...

1 A flow of unending and equal payments that occur at regular intervals of time is called a(n): A.amortization table. B.annuity due. C.indemnity. D.amortized cash flow stream. E.perpetuity. 1 points...

1 A flow of unending and equal payments that occur at regular intervals of time is called a(n): A.amortized cash flow stream. B.perpetuity. C.indemnity. D.annuity due. E.amortization table. 1 points...

Excel Online Structured Activity: Evaluating risk and return Stock x has a 9.5% expected return, a beta coefficient of 0.8, and a 30 standard deviation of expected returns Shock Y has a 12.5%...

Excel Online Structured Activity: Evaluating risk and return Stock x has a 9.5% expected return, a beta c fficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 12.5%...

Arithmetic mean Geometric Mean A 5.33% 4.61% B 4.61% 5.33% C 12.00% 7.00% D 7.00% 12.00% 2. Larry invested $5,000 in ABC mutual fund one year ago. The fund paid dividends of $100, $150, $50, and $100...

Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 30.0% standard...

Excel Online Structured Activity: Evaluating risk and return Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30 % standard deviation of expected returns. Stock Y has a 12.5%...

Stock x has a 9.5% expected return, a bela coefficient of 0.8, and a 35% standard deviation of expected returns Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 20.0% standard...

Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 40% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 30.0% standard...

Suppose that you have a project that has a .7 chance of doubling your investment in a year and a .3 chance of halving your investment in a year. What is the standard deviation of the rate of return...

Explain how the concept of a positive risk-return relationship breaks down if you can systematically find stocks that are overvalued and undervalued.

Adjetivos posesivos. Restate the sentence so the possessive adjectives are clear: ( Hint: remove the su / sus and rewrite the sentence. ) Su casa es muy bonita. ( ella ) Su casa de ella es bonita....

please answer all parts,they go together. thank you Systems has revised its growth prospects and now expects its dividends to grow at a rate of 3.5% per year forever. a. What is the drop in value of...