What is the standard deviation of the returns on a portfolio with 33% invested in Asset...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What is the standard deviation of the returns on a portfolio with 33% invested in Asset A and 67% in Asset B? The standard deviation of returns for A is 26% and 14% for Asset B. The correlation of the two assets is -0.85. Enter your answer as a percent without the % symbol with 2 decimal places. This means an answer of 0.1012 should be entered as 10.12. Your Answer: What is the standard deviation of the returns on a portfolio with 33% invested in Asset A and 67% in Asset B? The standard deviation of returns for A is 26% and 14% for Asset B. The correlation of the two assets is -0.85. Enter your answer as a percent without the % symbol with 2 decimal places. This means an answer of 0.1012 should be entered as 10.12. Your Answer:
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the standard deviation of returns for a portfolio we need to wei... View the full answer
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
Posted Date:
Students also viewed these finance questions
-
What is the standard deviation of the returns on a stock given the following information? A. 1.57 percent B. 2.03 percent C. 2.89 percent D. 3.42 percent E. 4.01percent Probablity of at f Return...
-
What is the standard deviation of the returns on the Fly-by-Night Airlines stock and Feet-on-the-Ground Bus Company, with the same return outcomes and probabilities described above? Of these two...
-
What is the standard deviation of returns on stocks X and Y?
-
Use a calculator to obtain solutions correct to the nearest hundredth in Problems 4954. x + 4 = 32x
-
A lumber company purchased a tract of land for $70,000 that contained an estimated 25,000 usable trees. The value of the land was estimated at $20,000. In the first year of operation, the lumber...
-
Determine the sum of the measures of the interior angles of the indicated polygon. Decagon.
-
a. Begin with the data from \(n=185\) countries throughout the world that have valid (nonmissing) life expectancies. Plot the life expectancy versus the gross domestic product and private...
-
Ouellette & Associates began operations on January 1, 2017. Its fiscal year end is December 31 and it prepares financial statements and adjusts its accounts annually. Selected transactions for 2017...
-
Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: Materials purchased on account, $ 3 , 3 7 0...
-
Whispering issued an 9%, 10-year $1,800,000 bond to build a monorail mass transit system. The city received $1,587,988 cash from the bond issuance on January 1, 2025. The bond yield is 11%. Interest...
-
What is the correlation between stocks X and Z? State of the Economy Probability of Occurrence Stock X Expected Return Stock Y Expected Return Stock Z Expected Return Recession 35% 25% -10% 15%...
-
Choose an organisation that can either be where you are currently working in or one you are familiar with. Analyse which area(s) of the business where you can use any four (4) of the following forms...
-
How would increasing or decreasing a company's cash flows affect their NPV?
-
Often the normative objective function of the financial manager and social responsibility are incompatible. Social responsibility means giving back to the community and the normative object function...
-
search about Toronto stock exchange what is it? what are the functions? how shares are listed etc. Then compare it with New York Stock Exchange. What is the difference and what are the similarities?
-
With a lower revenue growth target, would HH be able to avoid a cash deficiency? Discuss what other measures the Browns might take in order to approach the cash level that Maggie considers ideal,...
-
An invoice for two items has come in: 50 tablets at $499 less 8%, 5% . 100 laptops at $1049 less 10%. 10% What is the invoice total? Keep answer to the cent. Do not input the $ symbol into your...
-
Prairie Outfitters, Inc., a retailer, accepts paymnent through credit cards. During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assuming that the credit card...
-
Is interest rate parity a reliable relation in the interbank markets?
-
Suppose continuously compounded changes in the spot rate St$/ are independently and identically distributed (iid) as normal. The relation between the variance 2 of continuously compounded iid normal...
-
Are real world financial markets perfect? If not, in what ways are they imperfect?
-
Online purchases are commonly governed by a sales contract between the online merchant and the consumer in the terms of use found as a link on the sellers home page. Often, purchasers are informed...
-
Zapata, a Texas company, entered into a contract for Unterweser, a German company, to tow an oil-drilling rig from Louisiana to Italy. The contract stated, Any dispute arising must be treated before...
-
Aangi sends Anil a purchase order stating that only her terms apply and that in the event of a dispute between the parties in connection with the transaction, the dispute will be submitted to...
Study smarter with the SolutionInn App