User Account

All Pages

Question regarding the two-asset portfolio

Assignment Help Finance Basics
Reference no: EM131101080

Two-Asset Portfolio

Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 20% and a standard deviation of 65%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 30% in Stock A and 70% in Stock B? Round your answer to two decimal places.

What is the standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B? Round your answer to two decimal places.

Reference no: EM131101080

Questions Cloud

Calculate the probability that a randomly chosen u.s. adult : If three U.S. adults were chosen at random, compute the probability that only two of them take a multiple formula as their primary source.
What are the benefits of the improvements made to program : Write a 1-2 page paper explaining what are the benefits of the improvements made to the program and the meaning behind each improvement. Please do not forget to include any references if used.
Estimate the investors required rate of return : Estimate the investors' required rate of return on these stocks and the steady future growth rate of the growing corporation as perceived by the market.
Find out the solution of true and false : 22.A conclusion of a presentation has three main purposes: to summarize the main points, to restate your credentials, and to bring closure to the presentation. Is this statement true or false?
Question regarding the two-asset portfolio : Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 20% and a standard deviation of 65%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio inv..
Find the cost of each kg : The cost of 2kg of wheat and 1kg of sugar is 7. The cost of 1kg of wheat and 1kg of rice is 7. The cost of 3kg of wheat 2kg of sugar and 1kg of rice is 17. Find the cost of each kg
What potential liability does holmes have to firm creditors : The other partners agreed to admit Holmes as a general partner in Watson's place. As a part of the agreement between Watson and Holmes, Holmes promised to satisfy any prior partnership debts ("hold harmless" clause) for which Watson might be liab..
Concept of earnings quality : The concept of accounting quality has several dimensions, but two characteristics often dominate: the accounting information should be a fair representation of performance for the reporting period
How many entries are there in the fat itself : In the FAT file system, how many entries are there in the FAT itself (hint: how is it indexed) and what does each entry contain? Hint: I don't want an actual size, I want what the size is based on.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine expected future stream of dividends

In 1965, Warren Buffett get control of a New England textile business called Berkshire Hathaway for about $10 per share. Today the stock sells for around $135,000 a share and Mr. Buffett is the 2nd richest person in America.

  Toyota first cost 26000 annual operating cost of 1200

a sales group is considering two cars for lease option 1 buick first cost 22000 annual operating cost of 2000 salvage

  If brenda contributes 630 at the end of each month to her

if brenda contributes 630 at the end of each month to her retirement account that pays 8.75 compounded semiannually how

  Example of technological innovation

Give an example of technological innovation from the last two decades. What forces led to the commercialization of the science behind the technologies? Did the capability exist before the market demand or was the demand there before the technology..

  Compute the future value in year

Compute the future value in year 8 of a $2,600 deposit in year 1 and another $2,100 deposit at the end of year 3 using a 10 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

  Differences between a direct-financing and sales type lease

Discuss the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee?

  Describe the bargaining zone model

Describe the bargaining zone model, and outline strategies that skilled negotiators use to claim value and create value in negotiations. Explain how one might relate to a real-world scenario professionally or personally.

  Transaction on the components of the book

Describe the directional effect (increase, decrease, or no effect) of each transaction on the components of the book value of common shareholders' equity shown in the chart on the next page.

  Define a discount bond and a premium bond

Define a discount bond and a premium bond

  Formulae and calculations used to arrive at financial values

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values.

  Which of the following best defines incremental earnings

Which of the following best defines incremental earnings?

  Choose the investment with the highest return over 20 years

If the premiums on $100,000 of 20 year term life insurance is $25 per month for a forty year old non-smoker. The risk free interest rate is 3% per year. Would you recommend that I buy the insurance or a 20 year municipal bond issued by NYC pays 6%..

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