What is the standard deviation of a two-asset portfolio

Assignment Help Finance Basics
Reference no: EM13273065

What is the standard deviation of a two-asset portfolio if one of the assets has a standard deviation of 0.30, the other asset has a standard deviation of 0.15, and the correlation coefficient between the two assets is 0.15 if ten percent of the portfolio consists of the first asset?

A) 14.3%.
B)22.5%.
C)30%.
D)45%.

 

Reference no: EM13273065

Questions Cloud

Determine the budgeted cell conversion cost per unit : Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information..
Explain piece of aluminum wire with a circular cross section : A 4.1089 g piece of aluminum wire with a circular cross section is 42.06 cm long and has a density of 2.6989 g/cm3 what is the volume of the wire in cm3
How much must be deposited : At the end of 4 years you will receive $12,000.You will deposit this in the bank towards the 45,000.In addition to this deposit how much more must be deposited to reach the goal of 45,000 at 5% interest?
What is the profit or loss associated with copper : Allocate the joint costs using the relative sales values. With these costs, what is the profit or loss associated with Copper?
What is the standard deviation of a two-asset portfolio : What is the standard deviation of a two-asset portfolio if one of the assets has a standard deviation of 0.30, the other asset has a standard deviation of 0.15, and the correlation coefficient between the two assets is 0.15 if ten percent of the p..
Peter hired a cleaning service to clean the rugs : The vacuum cleaner was delivered on Friday, the day before the party, when the rugs in Peter's home were quite dirty. The vacuum cleaner did not work properly. Peter notified the seller, who responded by saying that nothing could be done until ..
Evaluation of the effectiveness of the health care system : What is your evaluation of the effectiveness of the U.S. health care system in the context of delivery, finance, management, and/or sustainability? What are the issues that prompted a need for health care reform?
Consider a three-year project with the following information : Consider a three-year project with the following information: initial fixed asset investment = $694,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33.95; variable costs = $22.50; fixed costs = $209,50..
What is the incremental savings of buying the valves : However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $55,000 per year. What is the incremental savings of buying the valves?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Calculate the operating breakeven point in units and ebit

Degree of operating leverage Grey Products has fixed operating expenses of $380,000, variable operating expenses of $16 per unit, and a selling price of $63.50 per unit.

  Explanation of venture capital and ipo

Can you please explain the difference between obtaining funds from a venture capital firm and engaging in an IPO?

  Objective type question on bond yield and valuation

Objective type Question on Bond yield and Valuation and If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount

  What would his dollar profit on the rights be

How many rights could Todd buy with his $4,800? Alternatively, how many shares of stock could he buy with the same $4,800 at $66 per share?

  Which stock should this investor add to his or her portfolio

However, Stock A's standard deviation of returns is 12% versus 8% for Stock B. Which stock should this investor add to his or her portfolio, or does the choice not matter?

  Determine the yearly dividend per share

The earnings for Crystal Cargo Corporation have been predicted for the next 5 years and are as follows. There is 1 million shares outstanding.

  Determine the liquidity premium for the corporate bond

A ten-year U.S. Treasury bond has a 3.5 percent interest rate, while an identical maturity corporate bond has a 5.25 percent interest rate.

  Determining weighted average cost of capital

Global Technology's capital structure is given below, The after tax cost of debt is 6.5%; the cost of preferred stock is 10%; and the cost of common equity is 13.5%.

  What is the beta of this 4-stock portfolio

You have invested in 4 stocks: X, Y, Z, and Fred. Each stock's beta and the dollars you invested in each are given below. What is the beta of this 4-stock portfolio?

  Determine real message - contingency funding

Contingency funding never survives the review process. Once upper management realizes you have built in some funds to cover risks, they will cut it out and lower the bid. Determine real message behind this quote.

  Adjusting returns for exchange rates

You're vice president of finance for International Resources, Inc. headquartered in Denver, Colorado. In January 2007, your firm's Canadian subsidiary obtained a six-month loan of $100,000 Canadian dollars from bank in Denver to finance the acquis..

  How the bank control the loan extended to the borrowers

Explain how the bank control the loan extended to the borrowers

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