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

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
For each of the following arguments, provide the conclusion. Be sure to type out the full and accurate conclusion as a [one] grammatically correct sentence. When adding the co
A local car dealer is advertising a standard 24-month lease of $1,150 per month for its sports car. The standard lease requires a down payment of $4,500, plus a $1,000 refunda
Using the demand curve shifters (PYNTE), explain whether each of the following will increase or decrease demand for cell phones. Tell whether the demand curve shifts to the ri
Include at least four images for each destination page. Create a logo for the website. Design three navigation options for the website. Each option should include links for a
Suppose that you have a job paying $40,000 per year. With a 15% probability, next year your wage will be reduced to $10,000 for the year. What is your expected income next yea
The equivalent amount of money that can be spent seven years from now in lieu of spending $50,000 now at an interest rate 18% per year is closest to. At an interest rate of 8%
In 2009 the American auto industry was in a dire economic state. Chrysler was in Chapter 11, GM was on the brink of bankruptcy, and Ford’s future was at best uncertain. The de
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property.What are the annual explicit