User Account

All Pages

Expected standard deviation of portfolio

Assignment Help Basic Statistics
Reference no: EM13216052

You have purchased five shares of stock in Diversified Machine Tools which has a mean value of $25 and a standard deviation of $9, and 10 shares in Northwest Foods, Inc. which has a mean value of $40 and a standard deviation of $11. The correlation between the two stock prices is -0.40.

a. Calculate the expected value of your portfolio.

b. Calculate the expected standard deviation of your portfolio.

c. What would be the difference in the expected standard deviation of your portfolio if the prices of the two stocks were independent?

Reference no: EM13216052

Questions Cloud

Ethical issues in business statistics : How can the ethical issues raised, be addressed from a Christian worldview? In other words, what guidance, using principles from a Christian worldview perspective, could be applied to understand and address these ethical issues?
What is the probability that ed finishes last : What is the probability that Dave wins the sprint and what is the probability that Dave wins and John places second, what is the probability that Ed finishes last
Examine the relative importance of the returns : Define the four categories of returns described in your text and be sure to cite the source for this information.Now, imagine you have been asked to help rethink the compensation policy at your previous, current, or future place of work. The HR man..
Compute the percentage of completion on the contract : It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $105,000. These costs should not be considered in the costs incurred to d..
Expected standard deviation of portfolio : Calculate the expected value of your portfolio and calculate the expected standard deviation of your portfolio.
Why company decides to repurchase half the common stock : Astromet is financed entirely by common stock and has a beta of 2.00. The firm pays no taxes. The stock has a price-earnings multiple of 11.0 and is priced to offer a 10.1% expected return. The company decides to repurchase half the common stock.
Explain the practices of effective leadership : analyze the practices of effective leadership and accountability that contribute to documented success and create an individual plan for employing similar strategies at college and in a career.
What will sivars ebit be if sales actually turn out : Analysts have evaluated the Sivar Silver Company and discovered that if sales are $800,000, the following will exist: Degree of operating leverage (DOL) 4.0x Degree of financial leverage (DFL) 2.0x Earnings before interest and taxes (EBIT) $50,000 Ea..
Calculate helenes basis in the land : Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively, Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident in 2013 while returning from a sporting event.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Significance testing format

The most important material reclaimed from beverage bottles is PET plastic. A serious impurity is aluminum, which later can clog the filters in extruders when the recycled material is used.

  Level of satisfaction in a consumer survey

The level of satisfaction in a consumer survey would represent what level of measurement?

  Confidence interval for the mean number of misspelled words

Construct a 95 percent confidence interval for the mean number of misspelled words in the population of student essays.

  Dress habits-probability research

At a board meeting of 20 businessmen, all of whom wear ties, what is the probability that:

  Correlation coefficient and causation

What does a squared correlation coefficient represent? Also, does the strength of the correlation depend on the direction? Finally, does correlation imply causation.

  Derive an expression for the coefficient of skewness

Explain the effect that changes in η and β have on the shape of the Weibull density and the effect that they have on γ3 and derive an expression for the coefficient of skewness for the Weibull distribution.

  Conduct a hypothesis test for each sample

Conduct a hypothesis test for each sample at the 0.01 level of significance and determine what action, if any should be taken.

  Intercept of slope

Assume that another counselor decided to extend the aforementioned study by collecting data on 14 children. His study yielded the following results:

  Determining percent of garages take less hours to erect

Determine percent of the garages take between 29 hours and 34 hours to erect? Determine percent of garages take 28.7 hours or less to erect?

  National cancer-incidence rates

Twelve cases of leukemia are reported in people living in a particular census tract over a 5-year period. Is this number of cases abnormal if only 6.7 cases would be expected based on national cancer-incidence rates?

  What is the percent of scores be outstanding

A standard deviation of 68. a score is considered outstanding if it is at least 420. what is the % of the scores would be outstanding?

  Population-sample and sampling distribution

Give an understanding with the difference between a population, a sample, and a sampling distribution. Uus a Java applet and external web sites for comment/reference.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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