Smallest expected loss for portfolio in coming month

Assignment Help Accounting Basics
Reference no: EM131015418

Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 13 percent and 42 percent, respectively. Woodpecker, Inc., stock has an annual return mean and standard deviation of 11 percent and 56 percent, respectively. The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the coming month with a probability of 2.5 percent? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131015418

Questions Cloud

Portfolio weighted average of the returns : You own a portfolio that has $2,100 invested in Stock A and $3,050 invested in Stock B. If the expected returns on these stocks are 10 percent and 14 percent, respectively, what is the expected return on the portfolio? (Do not round your intermedi..
Computing the expected return on the portfolio : You own a portfolio that has $2,150 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks are 10 percent and 17 percent, respectively, what is the expected return on the portfolio? (Do not round your intermedi..
Problem regarding the smallest expected loss : Woodpecker, Inc., stock has an annual return mean and standard deviation of 21 percent and 47 percent, respectively. The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the ..
Development of healthy adult sexuality can be explained : First, explain this statement in at least ¾ page and use concrete examples. Be sure to define within what "polymorphously perverse" means. Second, provide some alternative theoretical perspective on how else the development of healthy adult sexual..
Smallest expected loss for portfolio in coming month : The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the coming month with a probability of 2.5 percent?
Risk level equivalent to that of overall market : Your portfolio has a beta of 1.54. The portfolio consists of 16 percent U.S. Treasury bills, 34 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?
What is the beta of stock b : Your portfolio has a beta of 1.57. The portfolio consists of 16 percent U.S. Treasury bills, 35 percent stock A, and 49 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?
What other types of organizations might respond : What role do you think state and federal agencies should have during the response phase of crisis and emergency management? Explain.
Calculate the var : Calculate the VaR for 7 days at the 95% confidence level. Calculate the VaR for 28 days at the 95% confidence level

Reviews

Write a Review

Accounting Basics Questions & Answers

  Important factor for evaluating pending lawsuit

What accounting factors are significant before evaluating whether a pending lawsuit should be accrued as a liability and reflected in the financial statements?

  Journal entries and trial balance for cookie creations

In November 2006 after having incorporated Cookie Creations Inc., Natalie begins operations. She has decided to not pursue the offer to supply cookies to Biscuits. Instead she will focus on offering cooking classes. The following events occur. Pre..

  Shimmer does not sell any other assets during the year and

shimmer inc is a calendar year end accrual method corporation. this year its sells the following long term

  Prepare a cost of goods sold section for year ending

Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $2,000.The ending merchandise inventory is $25,000. Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).

  If you were to receive 1000 each year for 10 years

if you were to receive 1000 each year for 10 years starting at the end of 4 years determine what this annuity is worth

  Explain the fasb''s logic in deciding to require all companie

Explain the FASB's logic in deciding to require all companies to expense R& D costs in the period incurred.

  Zxc firm has the following information to determine

zxc firm has the following information to determine predetermine overhead rate for standard costingestimated total

  Prepare adjusting entries

Prepare adjusting entries for the seven items described above.

  The company uses the effective interest method

On November 1, 2009, the Reid Corporation acquired bonds with a face value of $700,000 for $673,618.61.

  Mecca concrete purchased a mixer on january 1 2011 at a

mecca concrete purchased a mixer on january 1 2011 at a cost of 75000. straight-line depreciation for 2011 and 2012 was

  Sun inc factors 2000000 of its accounts receivables with

sun inc. factors 2000000 of its accounts receivables with recourse for a finance charge of 3. the finance company

  Foulds company makes 13000 units per year of a part it uses

foulds company makes 13000 units per year of a part it uses in the products it manufactures. the unit product cost of

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