User Account

All Pages

Calculate the expected return of a portfolio

Assignment Help Finance Basics
Reference no: EM131950973

Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .091, E(RB) = .151, σA = .361, and σB = .621.

a-1. Calculate the expected return of a portfolio that is composed of 36 percent Stock A and 64 percent Stock B when the correlation between the returns on A and B is .51. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return % 

a-2. Calculate the standard deviation of a portfolio that is composed of 36 percent Stock A and 64 percent Stock B when the correlation between the returns on A and B is .51. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation % 

b. Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on Stocks A and B is -.51. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation %

Reference no: EM131950973

Questions Cloud

How can you trust others to provide helpful criticism : If people are likely to be biased or unfair in their assessment of you, how can you trust others to provide helpful criticism?
How can we monitor risk and return performance for a company : How can we monitor risk and return performance for a company? How also can we inform leaders on the opportunities of the possible risk or return?
Create a presentation about propose strategies or solutions : Create a 5-minutes, 2-slides voice-over presentation about Propose strategies or solutions to address those challenges.
Calculate the expected return of each of the stocks : Calculate the expected return of each of the following stocks. (Do not round intermediate calculations and enter your answers
Calculate the expected return of a portfolio : Calculate the expected return of a portfolio that is composed of 36 percent Stock A and 64 percent Stock B when the correlation between the returns
Why the regression analysis step is central to si process : Provide an explanation of why the regression analysis step is central to the SI process. Why so much emphasis has been placed on regression analysis.
What would be the consequences if libor raises : Why would LIBOR rise? What would be the consequences if LIBOR raises? As an investor, how should you be looking at LIBOR? Do you want LIBOR to go up
Can the option be exercised and the holder makes a loss : Under what circumstances will the option be exercised? Can the option be exercised and the holder makes a loss?
Discuss the type of unemployment : Technological unemployment is a term used to describe the lack or loss of jobs due to technological changes or innovations.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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