Explain correlation between the two markets

Assignment Help Finance Basics
Reference no: EM132674672

You currently hold a portfolio that is 100% invested in US stocks, with an expected return of 12% and a standard deviation of 18%. The risk free rate is 2%. You are considering investing some of your portfolio in German stocks, which have an expected return of 7%, and a standard deviation of 21%.

For what correlation between the two markets will you want to take a short position in Germany?

Reference no: EM132674672

Questions Cloud

What is John deductible rental loss : During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. What is John deductible rental loss
Can the same be said about blockchain : Why is that with an RDBMS, a primary key and foreign key can still create redundancy, thereby causing data anomalies? Can the same be said about blockchain?
What is his taxable gain : If Gene sells his house due to unforeseen circumstances for $550,000 after living in it for a full 18 months, what is his taxable gain
What are some big-name companies that recently moved : What are some big-name companies that recently moved their off-shore manufacturing back to the United States? Why did they take this step?
Explain correlation between the two markets : For what correlation between the two markets will you want to take a short position in Germany?
What is their taxable gain on a joint tax return : Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. What is their taxable gain on a joint tax return
What big-name companies that stopped producing products : What are some big-name companies that recently stopped producing certain products after Asian or European producers aggressively entered the market?
Mainstream theoretical perspectives : Focus on the three mainstream theoretical perspectives: realism, liberalism, and constructivism.
What are market timing strategies : What are market timing strategies? Suggest two reasons why timing strategies are unlikely to be successful for investors.

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!

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