Find the expected return and variance

Assignment Help Operation Management
Reference no: EM131152336

Find the expected return and variance of a two-asset portfolio, 65% bonds and 35% stocks. The expected return is 6% for bonds and 10% for stocks. The variances are 12% for bonds and 25% for stock. Assume that the correlation coefficient between bonds and stock = 0.

Reference no: EM131152336

Questions Cloud

Explain what is meant by ethical behavior : Develop and propose a plan for improving the effectiveness of communication in your organization. Incorporate the elements needed to establish a clear purpose. Explain what is meant by ethical behavior, and why organizations should be concerned abo..
Calculate the appropriate selling : Calculate the appropriate selling price of a 30-year 5% annual coupon paid semiannually, $1,000 corporate bond that was purchased five years ago. Marketplace interest rates are averaging 8%.
Equivalent in terms of return : What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.
Recent coupon payment occurred : The trade settled two days ago and the most recent coupon payment occurred 32 days ago. What was the invoice price that you were required to pay?
Find the expected return and variance : Find the expected return and variance of a two-asset portfolio, 65% bonds and 35% stocks. The expected return is 6% for bonds and 10% for stocks. The variances are 12% for bonds and 25% for stock. Assume that the correlation coefficient between bo..
How many coulombs of charge are deposited on the plane : A lightning bolt strikes an airplane with 30 kA for 2 ms. How many coulombs of charge are deposited on the Plane?
Determine the allowable rotation of the tabs : The twisting member has a diameter of 0.3 in. and the tabs are 1 in. away from each of the fixed ends. (Take G = 150 ksi.)
Discuss three supervisory techniques : Discuss THREE supervisory techniques that they used, using specific examples from the movie or TV episode. Do not spend too much effort explaining the background or details of the scenario, just get to the point
Analysis of the ethical concerns raised by the situation : An explanation of at least three of the relevant areas of law that have been addressed in this course (e.g., constitutional law, contracts, anti-trust law, securities regulations, employment law, environmental law, crimes, or torts) and an assessm..

Reviews

Write a Review

Operation Management Questions & Answers

  What are economies of scale in a manufacturing plant

What are economies of scale in a manufacturing plant? Do they continue forever? What are diseconomies of scale? How might you decide the optimal size of a plant?

  Write a dissertation is the hardest thing a person

Someone once said that writing a dissertation is easy, but that reading to write a dissertation is the hardest thing a person will ever do in his or her life. As you begin your doctoral journey, does that statement sound accurate? Why or why not?

  Examine the principles of critical thought in relation

Examine the principles of critical thought in relation to the chosen societal concern, and consider the importance of ethics, moral reasoning, a research-based process to search for truth, and the advantages of information technology in gathering ..

  What is the mission of sears holdings corporation

How does this project support the mission of the Sears holdings Corporation?

  Addressing various perspectives and without marginalizing

Keeping them organized sounds easy but what advice would you offer on addressing their various perspectives and without marginalizing them into clusters or groups with similar concerns?

  Discuss the steps in the selection process for new employees

Discuss the steps in the selection process for new employees. Evaluate why some potential employees are likely to be put through all the steps

  Establish kanbans to feed a newly installed work cell

The XYZ Company wants to establish kanbans to feed a newly installed work cell. The daily production (demand) rate is 180 units. The production lead time is 3 days. They want to keep 0.50 days of safety stock on hand (the safety stock factor). The ka..

  Estimate the server service rate per hour

Consider a single-line, single-server waiting line system. Suppose that there is only physical space for 2 units in the system (one in line and one being served).

  Identify and describe some of the near-term

You have been asked to join a strategic planning discussion, and hoping to contribute to the meeting, you decide to take one more look at United Airlines' situation to see if you can formulate some insight that could give the company an edge again..

  Obtaining a measure of overall performance

Cunningham Performance Auto, Inc. modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance.

  What do you think about e-commerce

If a company is online, it is global. Anyone in the world can order its products. What do you think about e-commerce? Does it cannibalize brick-and-mortar stores? Who benefits the most? Who is hurt the most? Is e-commerce a viable option of going glo..

  Developing an initial layout for a new facility

What is the difference in strategy in developing an initial layout for a new facility as comparedn to the strategy in improving the layout of an existing facility?

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