Determination of portfolio standard deviation

Reference no: EM1347265

You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A's standard deviation is 12% and asset B's standard deviation is 18%. The correlation coefficient between the two assets is -0.7. The expected return on the portfolio is 13%. What is the portfolio standard deviation?

1. 8.5%
2. 9.3%
3. 7.2%
4. 15.3%

Reference no: EM1347265

Questions Cloud

Explain is a high degree of market concentration a boon : Explain is a high degree of market concentration a boon or threat to consumers. What is the strongest argument on either side.

Show the motivation and conflict management : Show how different organizations apply motivation theories to motivate employees and examine which conflict management approaches work best in the organizations

Cash flow statement-cost-volume-profit measures risk : Online financial databases, like Lexis/Nexis and the Dow Jones News Retrieval Service, give data on thousands of companies. Assume you want to compare some companies' recent earnings histories. You may have the computer compare companies' returns ..

Elucidate does the coffee market meet all six conditions : Is the market for coffee perfectly competitive. Elucidate does the coffee market meet all six conditions of a perfectly competitive market.

Determination of portfolio standard deviation : Suppose you own a portfolio that has 35 percent invested in asset A, and 65 percent in asset B. Asset A's standard deviation is 12 percent and asset B's standard deviation is 18 percent.

Java program for line item application : This exercise explains you the process of testing and enhancing Line Item application. Open LineItemApp, Validator, Product, LineItem, and ProductDB classes that are in the c:java1.6ch06LineItem directory and review this code.

Business ethics-shareholder vs stakeholder : Describe and critiquing the two most prominent approaches to the nature of Business: shareholder and stakeholder theory and find these approaches both from a theoretical point of view and from a practical point of view.

What power be delivered to the solenoid : A dentist uses a small mirror of radius 44mm to locate a cavity in a patient's tooth. If the mirror is concave and is held 13 mm from the tooth, what is magnification of the image.

Breakeven cvp changes in operating income : Compute the firm's current contribution margin ratio and break-even in revenues. Recalculate contribution margin ratio and breakeven in sales if new machine is leased. What is the firm's operating income supposing that the new machine is leased?

User Account

All Pages