Expected return and standard deviation of a portfolio

Assignment Help Finance Basics
Reference no: EM131402219

Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 20% and standard deviation of 50%. The correlation coefficient between Stocks A and B is 0.5. What are expected return and standard deviation of a portfolio invested 40% in Stock A and 60% in Stock B? a. E(rp)? b. Var(rp)?

Reference no: EM131402219

Questions Cloud

Perform a DCF analysis using the cash flow projections : Assuming Tottenham Hotspurs continue in their current stadium following their current player strategy: Perform a DCF analysis using the cash flow projections given in the case. Based on this DCF analysis, what is the value of the Hotspurs
What does that framework leave out of the analysis : If women are discriminated against and receive less income than men on average, do they get less weight than men in consumer surplus? (Feminist)
Silver company stock worth to you : The next year the common stock of Silver Corp. will pay a dividend of $9.64 per share. If the company is growing at a rate of 4.69 percent per year, and your required rate of return is 10.39 percent, what is Silver's company stock worth to you?
Use the traditional square of opposition : Use the traditional square of opposition to find the answers to these problems. When a statement is given as false, simply enter an "F" into the square of opposition and compute (if possible) the other truth values.
Expected return and standard deviation of a portfolio : Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 20% and standard deviation of 50%. The correlation coefficient between Stocks A and B is 0.5. What are expected return and standard deviation o..
What is consumer surplus when the market is in equilibrium : What is consumer surplus when the market is in equilibrium?
What is the current price of the bond : 3 years ago, Maxi Min Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 9.21 percent, compounded semi-annually. What is the current price of the bond?
What is the truth value of the given statements : If "Some obsessive-compulsive behaviors are not curable diseases" is true, what is the truth value of the following statements?
What are monthly payments : 1. Three years ago you took out a 30-year amortizing loan. The loan has a 6% APR with monthly payments (and monthly compounding). a) What are your monthly payments if your current loan balance is $368; 600?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the net present value of acquiring

Maggie's Flowers is acquiring The Floral Shoppe for $40,042 in cash. The incremental value of the acquisition is $2,732. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?

  What is the projects net present value

An additional $2,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?

  A firm has common stock of 84 paid-in surplus of 200 total

a firm has common stock of 84 paid-in surplus of 200 total liabilities of 380 current assets of 330 and fixed assets of

  What is an aggressive financing strategy

What is an aggressive financing strategy? What are components of aggressive finance strategies? What is the difference between the aggressive and conservative financing models?

  What is net working capital

You anayze a firm's account and find that it has 30 days of ccounts receivable, 30 days of inventroy, and 30 days of accounts payable on the books at year end. What is the best estimate of its cash conversation cycle?

  What is the profit or loss associated with copper

Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Copper?

  What will your monthly payments be

You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

  Three-station production line with a single product

Consider the following three-station production line with a single product that must visit stations 1, 2, and 3 in sequence. its total production line time is 3 hrs 47 mins, bottle neck rate is 200, Wo is 9.333.

  Which option has the highest risk and lowest risk

Stock ABC does not have any traded options and is trading at $25 now. You believe the stock will decrease by 20% over the next six months.

  Calculate the value of the call

Consider a stock with a current price of sh 5. There is a two thirds probability that the stock will increase in value by 20% and a one third probability that the stock will decrease by 20% at the end of one year period. Further assume that the ex..

  Which stock would you consider to be riskier

You have estimated the following probability distributions of expected future returns for Stocks X and Y.

  Please read the case revaluing the chinese yuan and respond

please read the case revaluing the chinese yuan and respond to this question 1-do you believe that the revaluation of

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