Calculate the standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM13280027

If the standard deviation of returns of the market is 0.1 and the beta of a well-diversified portfolio is 1.5, calculate the standard deviation of the portfolio.

Reference no: EM13280027

Questions Cloud

Why does the longer-term bond price vary more : What will the value of each bond be if the going interest rate is 5%, 8%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity ant that 15 more payments are to be made on Bond L.
What is the rate of flow through the tube : Mercury flows through a horizontal pipe 0.80 cm in diameter and 0.5 m long. what is the rate of flow through the tube
Estimate the overall resistance of a heating element : As current passes through the wires, the wires heat up, thus toasting the toast. Estimate the overall resistance of a heating element which is 220 cm long and consists of nichrome wire with a diameter of 0.56 mm.
Discuss the financial manager place in the corporation : Explain the main goal a financial manager is trying to achieve and the types of decision financial manager makes.
Calculate the standard deviation of the portfolio : If the standard deviation of returns of the market is 0.1 and the beta of a well-diversified portfolio is 1.5, calculate the standard deviation of the portfolio.
How high up is bob : Bob has just finished climbing a sheer cliff above a beach, and wants to figure out how high he climbed. How high up is Bob, if the ball started from exactly 2 m above the edge of the cliff
Explain the vapor pressure of the solution : A solution is made by mixing 49.0 mL of ethanol, C2H6O, and 51.0 mL of water. Assuming ideal behavior, what is the vapor pressure of the solution at 20 degrees celcius
Calculate the expected return for microsoft : If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft.
Determine the amount of time that devices would have : Determine the amount of time that the following devices would have to be used before 1.0x106 C (1 million Coulombs) of charge passes through them. a. LED night light (I=0.0042 A) b. Incandescent night light (I=0.068 A)

Reviews

Write a Review

Finance Basics Questions & Answers

  Trevor would earn by selling the bonds today

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $936.05. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,048.77, what is the yield that Trevor would earn by sell..

  How much will luis have in his account at the time

If the new account earns interest at the rate of 8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement?

  Calculation of computation of projected cash flows

Calculation of Computation of projected Cash flows, NPV on Salvage Value Change & Sales (Units) Change using Graphs.

  At what rate is the dividend growing

Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.10 per share and the market rate of return is 10.7 percent. At what rate is the dividend growing?

  How many shares will be required for a minority group

Given that there are 4,000,000 shares outstanding in Miller Corp how many shares will be required for a minority group of stockholders to elect 2 of 9 members on the board of directors? ( Assume cumulative voting required)

  What is the current price of vonage

In May 2006, Vonage (VG) went public at $17 and six years later the price of the stock remained below $17. What is the current price of Vonage?

  Impact of accounting for operating leases

Issuance of SI par value common stock at an amount greater than par value and donation of land by a governmental unit to a corporation

  Who advises the company during a stock ipo

Who advises the company during a stock IPO and helps them? What do those advisers do? Who else might enter into the in the process and what might they do?

  Calculate maximum price for a non-constant growth stock

Calculate maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics;

  What three techniques are used to assess projects risk

Why should companies use a project's net cash flows rather than its accounting income when determining a project's NPV? What are the major types of project risk?

  What is the holding period return of the baseball card

Another company, Bohenick Classis Automobiles restores and rebuilds old classic cars. This company purchase and restored a classic 1957 Thunderbird convertible 7 years ago for $9,300.00. Today at auction, the car sold for $102,300.00.

  What is the primary concern an investor should conside

when using the DDM to make an investment move, what is the primary concern an investor should conside at decision time?

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