User Account

All Pages

Calculate the weights of stock a and stock b

Assignment Help Finance Basics
Reference no: EM133072009

To achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is -1. Use the following information. (Round intermediate calculations and final answers to 2 decimal places, e.g. 31.21%.)

State of the economy

Probability of
occurrence

Expected return on
stock A in this state

Expected return on
stock B in this state

High growth

25%

42.0%

57.0%

Moderate growth

20%

22.0%

27.0%

Recession

55%

- 12.0%

- 22.0%

Weight of stock A

enter weight of stock A in percentages  %

Weight of stock B

enter weight of stock B in percentages  %

Reference no: EM133072009

Questions Cloud

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.
For what amount will software be capitalized : The economic life of the software is estimated at four years. For what amount will software be capitalized in 2021
Behavioral and biological components of disease : Describe both the behavioral and biological components of the disease. What treatment options exist for each component of the disease?
What are the equations that should be used : In the Valuing Wal-Mart 2010, can you explain to me how to calculate the forecasted dividends for 5 years plus sale? What are the equations that should be used
Develop a capitalization table : Develop a capitalization table following this Series A round of financing.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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