User Account

All Pages

Standard deviation of the minimum variance portfolio

Assignment Help Finance Basics
Reference no: EM131318364

The stock of Bruin, Inc., has an expected return of 22 percent and a standard deviation of 35 percent. The stock of Wildcat Co. has an expected return of 14 percent and a standard deviation of 40 percent. The correlation between the two stocks is .40. Calculate the expected return and standard deviation of the minimum variance portfolio?

Reference no: EM131318364

Questions Cloud

How could you measure much stretch in a bolt of this size : The bolt of problem 1 is put in service and its temperature rises to 2508F. How much change in length of the bolt would you expect this increase in temperature to create?
Straight-line depreciation to a zero balance : Expected to have a useful life of 20 years At the end of the project the building and its equipment are expected to be sold for a $200,000 salvage value The building and its equipment will be depreciated over their 20-year life using straight-line de..
Why is book value often meaningless : Why can a relatively small number of stock appreciation rights prove to be a material drain on future earnings and cash of a company?
Calculate the degree of financial leverage : McDonald Company shows the following condensed income statement information for the current year:- Calculate the degree of financial leverage.
Standard deviation of the minimum variance portfolio : The stock of Bruin, Inc., has an expected return of 22 percent and a standard deviation of 35 percent. The stock of Wildcat Co. has an expected return of 14 percent and a standard deviation of 40 percent. The correlation between the two stocks is ..
Expression of variance on a asset portfolio : How many variance and covariance terms does the expression of variance on a 5 asset portfolio have?
Does the addition of the external load endanger the bolt : Does the addition of the external load endanger the bolt? Sketch an alternate form for joint diagram for this situation ? Define the ‘‘critical external load.'' Approximately what would you expect it to be for this joint?
Write a paper that discusses a recent crisis in the news : Write a paper that discusses a recent crisis in the news and how it was handled from a PR standpoint. How would you have handled the situation as a PR expert and why? What tactics and techniques would you have used and why?
How long has she owned land if the price : Some time ago, Julie purchased eleven acres of land costing $13,990. Today, that land is valued at $33,528. How long has she owned this land if the price of the land has been increasing at 6 percent per year?

Reviews

Write a Review

Finance Basics Questions & Answers

  Shares of common stock outstanding

The required rate of return on this investment is 18%. MMP has debt of $2,000,000, preferred stock of $1,000,000 and 400,000 shares of common stock outstanding. What is each share of common worth today?

  What is the nominal and effective cost of trade credit

what is the nominal and effective cost of trade credit under the credit terms of 315 net

  Question regarding the michael porter five forces

Review Michael Porter's Five Forces. How would apply this important concept to your business idea? Your paper should be 2-3 pages in length and must be written in proper APA format. At least 2 scholarly references are expected.

  What will be the effect on the level of checkable deposits

If a bank buys $70 million of bonds fromthe Fed and also borrows $100 million fromthe discount window, what will be the effect on the level of checkable deposits?

  Web sites that contain video clips

Go to one of the Web sites that contain video clips (such as www.youtube.com) and view some video clips about improving your credit.

  What is the expected premium for a put on google

Using Put-Call parity, and the call valued in the first question, what is the expected premium for a put on Google with the same characteristics as the call in the first question?

  Establishment of local collection centers

Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two and one-half days.

  What is the estimated beta coefficient of your company

What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio? (the beta is 0.34)

  You have the opportunity to purchase mineral rights to a

1 you are saving money for a down payment on a new house. you intend to place 5000 at the end of each year for three

  What is the risk premium on a stock with a beta

The Elvis Alive Corporation, makers of Elvis memorabilia, has a beta of 2.35. The return on the market portfolio is 13%, and the risk-free rate is 7%. According to CAPM, what is the risk premium on a stock with a beta of 1.0?

  What are stocks and bonds

What are Stocks and Bonds? Describe how you could estimate their values. If you are investing in the stock market, which would you invest in and why?

  Use the sum function to calculate the total for all the cell

Create a business budget sheet using Microsoft® Excel®. In the budget sheet do the following: Create a label called "Income" and add your monthly business income in the next cell: $42000. Add a label called "Rent" and enter the amount in the next..

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