+1-415-670-9189
info@expertsmind.com
Volatility lower than that of the original? stocks
Course:- Business Economics
Reference No.:- EM132281504




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Arbor Systems and Gencore stocks both have a volatility of 46 %. Compute the volatility of a portfolio with 50 % invested in each stock if the correlation between the stocks is ?

(a?) plus 1.00

?(b?) 0.50

(c?) 0.00

?(d?) -0.50

?(e?) -1.00

In which of the cases is the volatility lower than that of the original? stocks?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Prior to its establishment in 1994, NAFTA had some strong opposition from several high-ranking politicians - many of whom feared the loss of American jobs to Mexico where it i
A large, well-established home insurance company writes insurance policies to cover losses from fire, theft, and vandalism. In a recent financial review, managers discovered t
As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.
An accident occured and an individual loses a leg. It lowers the individual's utility at each level of income but increases his/her marginal utility. Show diagrammatically the
The owner of a corner lot wants to find a use that will yield a desireable return on his investment. If the owner wants a minimum attractive rate of return on his investment o
The gross domestic product (GDP) of the United States is defined as the ---------------, all --------------, ----------------- in a given period of time. Rajiv's employer as d
In a Stackelberg industry with identical firms we know that firm 1, the leader, produces its monopoly quantity in equilibrium. Given this, does the Stackelberg leader necessar
The amount of money a person must deposit 3 years from now in order to withdraw $10,000 per year for 10 years beginning 15 years from now at an interest rate of 10% per year i