Calculate the standard deviation correlation coefficient

Assignment Help Finance Basics
Reference no: EM133072013

The expected return of Cullumber is 17.7 percent, and the expected return of Riverbed is 22.7 percent. Their standard deviations are 11.7 percent and 19.7 percent, respectively. If a portfolio is composed of 35 percent Cullumber and the remainder Riverbed, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Cullumber and Riverbed of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.)

Calculate the standard deviation if the correlation coefficient is - 0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.)

Reference no: EM133072013

Questions Cloud

How much money did you bring back to the US : Then on the way home, you spent 75,000 Pesos in Cozumel, Mexico. How much money did you bring back to the U.S. given the following exchange rates
What is the yield to maturity of bond : According to The Wall Street Journal, a GE bond sells for par today. Its coupon rate is 9%. What is the yield to maturity of this bond?
Explain blood typing : Discuss the concept of ABO blood groups. Summarize the antigens and antibodies associated with Type O, Type A, Type B, and Type AB blood.
Compute the labor rate variance : During December, 110,200 hours of labor were incurred to produce 58,000 units of product. Compute the labor rate variance
Calculate the standard deviation correlation coefficient : The expected return of Cullumber is 17.7 percent, and the expected return of Riverbed is 22.7 percent. Their standard deviations are 11.7 percent and 19.7 perce
What is function of meiotic division : What is the function of meiotic division? What is a morula? What is a blastocyst? Briefly describe the three stages of labor.
Prepare an income statement for the shop : Depreciation and the repair tools will be $30,000. Prepare an income statement for the shop based on these estimates. The tax rate is 20%
Structure and function of the human body : Multiple sclerosis is a condition that affects the central nervous system. Explain how multiple sclerosis affects the nervous system.
Calculate the weights of stock a and stock b : To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1.

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!

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