User Account

All Pages

Standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM131914496

You have the following information for Stock A and Stock B:

Expected rate of return:

Stock A: .15

Stock B: .08

Standard deviation:

Stock A: .60

Stock B: .40

Correlation between the two stocks: .5

If you invest $4,000 and $6,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?

Reference no: EM131914496

Questions Cloud

Annualized capital and operating cost : Determine and report an annualized capital and operating cost, incurred at the end of each of the 15 years, that has the same NPV as the actual capital
How would the accounting be different from us gaap : Prepare journal entries to record the December 2016 transactions. How would the accounting be different from U.S. GAAP?
New product line in fertilizer business : You are considering the launch of a new product line in your fertilizer business.
Should the socially responsible company pay low-wage : Should the socially responsible company pay low-wage, fast-food workers more than the market requires? Explain. Is the free market the best measure of a "fair".
Standard deviation of the portfolio : If you invest $4,000 and $6,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?
How can make good business sense to pay employees : How can it make good business sense to pay employees more than the law and the market require? Would you do as Hobby Lobby did? Explain.
What is the expected price of the stock : The current 10-year Treasury bond yield is 2.5% and the market risk premium is estimated to be 8%. What is the expected price of the stock?
Why the story is immediately relevant to the topics : Requires you to share a business related article from the past 6 months that describes your view of our assigned course topic(s) for the week.
What is the implied pure rate of interest : Inflation is expected to be 5% in the bond's first year and 4% in its second year. What is the implied pure rate of interest?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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