Calculate the volatility of a portfolio

Assignment Help Financial Management

Reference no: EM132014065

Suppose Johnson? & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 24%. Calculate

a. the expected return and

b. the volatility(standard deviation) of a portfolio that consists of a long position of $8,500 in Johnson & Johnson and a short position of $1,000 in Walgreens.

Expected Return Standard Deviation

Johnson & Johnson 7.2% 15.1%

Walgreens 9.1% 20.8%

Reference no: EM132014065

Questions Cloud

What are some of the factors you should consider : Suppose you landed a job at a large rm that offers a de ned bene t plan, a cash balance plan, and a de ned contribution plan.

How do the films daughters of the dust set it off : How do the films Daughters of the Dust, Set It Off, and Saving Face challenge "heteronormative and patriarchal structures of kinship and community

Calculate what will be jbs wacc : Assume the appropriate weighted-average tax rate is 25 percent. What will be JB's WACC?

Titrate the sample of acid : Consider the titration of 20. mL of 0.10 M oxalic acid (a weak diprotic acid). What volume (in mL) of 0.10 M solution of NaOH is needed to fully titrate

Calculate the volatility of a portfolio : Calculate the volatility of a portfolio that consists of a long position of $8,500 in Johnson & Johnson and a short position of $1,000 in Walgreens.

Molecular weight of nicotine : If the molecular weight of nicotine is 162.2 g/mol what is the molecular formula for this compound?

Why cations usually form by losing valence electrons : In terms of binding energies, explain why cations usually form by losing valence electrons, and generally retain their core electrons.

How many nanogram of ferritin are in body of woman : How many nanogram of ferritin are in body of woman with 4.8 L of blood? The blood sample revealed that her ferritin levels are at 56 ng/mL

Describe which of the approaches to psychotherapy you take : In a one to two-page paper, describe which of the approaches to psychotherapy you would take. What do you see as the strengths of this approach

User Account

All Pages