Expected value and standard deviation for the portfolio

Assignment Help Financial Management

Reference no: EM131976739

You own a two-stock portfolio, with 40% of your money in Stock A and 60% in Stock B. The expected value and standard deviation of Stock A are 7% and 4.2%, respectively. The corresponding figures for Stock B are 9% and 5.3%. The correlation between the two stocks is 0.15. What are the expected value and standard deviation for the portfolio?

Reference no: EM131976739

Questions Cloud

What is the relationship between self-esteem and esteem need : What is the relationship between self-esteem, esteem needs, and belonging to a group? Why is it important for a manager to understand and appreciate employees.

What is portfolio beta : The betas for these four stocks are 1.4, 0.6, 1.5, and 0.8, respectively. What is the portfolio beta?

Investigation of unusual items : The standards also discuss the nature and purpose, extent of reliance on analytical procedures and subsequent investigation of unusual items identified

What level of liquidity and solvency would you looking for : For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any.

Expected value and standard deviation for the portfolio : The correlation between the two stocks is 0.15. What are the expected value and standard deviation for the portfolio?

Compute the equivalent annual libor rates : Compute the equivalent annual LIBOR rates (i.e., LIBOR rates with annual compounding) appropriate for discounting cash flows in 2, 8, and 14 months.

Identify and describe the legal categories of a business : Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.

What is your equity value-what is the new margin : What is your equity value if stock goes down to $25? What is the new margin?

E value from the nernst equation : If your E value from the Nernst equation were increased by .09V, what would your Q ratio be?

User Account

All Pages