+1-415-670-9189
info@expertsmind.com
What is the portfolio standard deviation
Course:- Financial Management
Reference No.:- EM131085537





Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A’s standard deviation is 12% and asset B’s standard deviation is 18%. The correlation coefficient between the two assets is -0.7. The expected return on the portfolio is 13%. What is the portfolio standard deviation?

a.) 8.5% b.) 9.3% c.) 7.2% d.) 15.3%

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
A company has a target capital structure of 40% debt, 10% preferred stock, and 50% equity. If the company has $750,000 of retained earnings that can be used to finance new pro
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $3,000 per month for the next three years and then $6,000 per month for
Calculate the future value of $5,000 earning 10% after one year assuming annual compounding. Richard Gorman is 65 years old and about to retire. He has $500,000 saved to suppl
L web is bidding to provide web services for a company. The company pays its current provider $10,000 per year for hosting its web page, handling transactions, etc.  If L web'
Bubba's Steakhouse has budgeted the following costs for a month in which 1,690 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; ren
A firm with total costs of $1,400,000 and sales of $2,000,000 merges with a smaller firm with total costs of $700,000 and sales of $1,200,000 million. Calculate the differen
Accounting statements can be manipulated. Please try to give an argument pro and con on this ethical issue. Any actual public examples you would like to cite would be most app
Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 850 2 1,190 3 1,450 4 1,600 If the discount rate is 7 percent, what is the