What do you see happening to portfolio volatility

Assignment Help Finance Basics
Reference no: EM131126376

In the previous question, what is the standard deviation if the correlation is +1? 0? – 1? As the correlation declines from + 1 to – 1 here,

what do you see happening to portfolio volatility? Why?

Reference no: EM131126376

Questions Cloud

What are the expected return and standard deviation : What are the expected return and standard deviation of the minimum variance portfolio?
What are the expected return and standard deviation : What are the expected return and standard deviation of the minimum variance portfolio in the previous problem?
What is the weight of each stock in the minimum variance : Consider two stocks, Stock D with an expected return of 13 percent and a standard deviation of 39 percent and Stock I, an international company. What is the weight of each stock in the minimum variance portfolio?
What are the expected return and standard deviation : In Problem 12, what are the expected return and standard deviation on the minimum variance portfolio?
What do you see happening to portfolio volatility : In the previous question, what is the standard deviation if the correlation is +1? 0? – 1? As the correlation declines from + 1 to – 1 here, what do you see happening to portfolio volatility? Why?
Calculate the expected return and standard deviation : Use the following information to calculate the expected return and standard deviation of a portfolio that is 40 percent invested in 3 Doors, Inc., and 60 percent invested in DownCo.
Calculate the expected return and standard deviation : Given the following information, calculate the expected return and standard deviation for a portfolio that has 45 percent invested in Stock A, 35 percent in Stock B, and the balance in StockC.
Fill in the missing information in the following table : Fill in the missing information in the following table. Assume that Portfolio AB is 30 percent invested in StockA.
What is the expected return of the portfolio : Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio?  What is the variance of this portfolio? The standarddeviation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the net present value

In your planning phase of a new system, you are require to do a feseality study , with the given information calculate the net present value and the overall return of investment.

  Explain the difference between your estimate in part

Consider the setting of Problem 17. You decided to look for other comparables to reduce estimation error in your cost of capital estimate. You find a second firm, Thurbinar Design,which is also engaged in a similar line of business. Thurbinar has a s..

  Update us on your portfolio results to date have you made

update us on your portfolio results to date. have you made changes? for any changes you wish to make you can assume the

  Prepare supporting calculations to decide whether or not

sunny hotels plc owns a successful chain of hotels. the company is considering diversifying its activities through the

  What was net working capital for 2007 and 2008

What was net working capital for 2007 and 2008? b. What was Bailey's 2008 free cash flow? c. Construct Bailey's 2008 statement of stockholders'equity.

  What is the cash-flow adjusted rate of return

At the end of December, the account is worth $3,060,000.00. What is the cash-flow adjusted rate of return for December?

  Review your results from s22-3 grippers expects cost of

preparing an operating budgetreview your results from s22-3. grippers expects cost of goods sold to average 60 of sales

  Determine the price of stock

A common stock is held for two years, during which time it receives an annual dividend of $10. The stock was trade for $100 and generated an average annual return of 16 percent.

  Suppose the interest rate on a 1-year t-bond is 50 and that

suppose the interest rate on a 1-year t-bond is 5.0 and that on a 2-year t-bond is 7.0. assuming the pure expectations

  Financial news claims to be unbiased and fact based this is

financial news claims to be unbiased and fact based. this is offset at least partially by the desire to sell news. can

  Please discuss the importance and significance

Please discuss the importance and significance of time value of money? It is a Fin320 question, please answer about 200-250 words.

  What is the divisions margin what is the divisions turnover

glass wares is a division of a major corporation. the following data are for the latest year of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd