Calculate weights of a and b in the global minimum variance , Macroeconomics

Assignment Help:

Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a standard deviation of 17%. B has an expected rate of return of 9% and a standard deviation of 14%. The weights of A and B in the global minimum variance portfolio are _____ and _____, respectively.

Related Discussions:- Calculate weights of a and b in the global minimum variance

Nursing home has a book value, Beverly enterprises owns a nursing home that...

Beverly enterprises owns a nursing home that is currently earning $2.0 million in cash flow on an annual basis, but this amount is expected to drop in the future. The nursing home

Calculate the equilibrium price and quantity, Question 1: What is the equi...

Question 1: What is the equilibrium price and quantity? Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price? Qu

Best estimate of real gdp, Consumption = $3 trillion, Investment spending =...

Consumption = $3 trillion, Investment spending =$2 trillion, Government purchases = $2 trillion, net exports via the ROW is $0 trillion. 1. What is the best estimate of real GDP

Frequency distribution channel, The original data values cannot be determin...

The original data values cannot be determined once they are grouped into a frequency distribution channel?

What is cost-push inflation, What is Cost-push inflation Cost-push infl...

What is Cost-push inflation Cost-push inflation takes place when costs of production increase causing short-run aggregate supply curve to shift to left. The main causes of c

Saving, defination

defination

Major economic indicators, A. What are the major differences between capita...

A. What are the major differences between capitalism, communism, and socialism? B. Discuss the three major economic indicators and how they are indicative of our current economi

Price of steel jumped, Your firm usually uses about 200-300 tons of steel p...

Your firm usually uses about 200-300 tons of steel per year. Last year, you purchased 100 tons of steel than needed (at a price of $200 per ton) In the meantime, the price of steel

Give an example also diminishing returns to an input, Explain the productio...

Explain the production function and discuss why it is important? Explain diminishing returns to an input and give an example? Discuss why a firm's cost curve might be different in

What is the value of the test statistic, For the United States, the mean mo...

For the United States, the mean monthly Internet bill is $32.79 per household (CNBC, January 18, 2006). A sample of 50 households in a southern state showed a sample mean of $30.63

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages