The standard deviation of returns on i

Assignment Help Finance Basics
Reference no: EM13305255

Hyacinth Macaw invests 54% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 15%, and on J it is 28%.

a. Calculate the variance of portfolio returns, assuming the correlation between the returns is 1.0. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Portfolio variance

b. Calculate the variance of portfolio returns, assuming the correlation is 0.4. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Portfolio variance

c. Calculate the variance of portfolio returns, assuming the correlation is 0. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Reference no: EM13305255

Questions Cloud

Determine what is the uncertainty in meters in the distance : A laser range finder consists of a laser and a light receiver. It operates by bouncing a laser pulse off a mirror and measuring the time of flight, the time it takes for the pulse to leave the laser, bounce off the mirror and return to the receive..
How much energy is lost while the skier slides down incline : a skier of mass m is standing on a slope with an angle of elevation ø. After being given a tiny nudge, the skier slides down the slope, how much energy is lost while the skier slides down the incline
How many atoms are expected to decay : A sample contains 3.5Ã-1019 radioactive atoms with a half life of 10000 years. How many atoms are expected to decay in the first second
How long must the droplet fall to achieve a concentration : The saturation concentration for the drop is 9.20 mg/L. If, after falling for two seconds, the droplet has an oxygen concentration of 3.20 mg/L, how long must the droplet fall (from the start of the fall) to achieve a concentration of 8.20 mg/L
The standard deviation of returns on i : Hyacinth Macaw invests 54% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 15%, and on J it is 28%.
Determine the value of the speed of light : The atronomer was studying the moon of jupiter called lo. He noticed that measurements taken in the spring when used to predict the position of lo in the fall were off by 18.177 minutes of time. determine the value of the speed of light that Roemer..
What was the ph of the soft drink before bottle was opened : You open a 16 oz (1 pint) bottle of a carbonated soft drink that has a temperature of 5°C, then you get distracted and forget to drink it. You come back quite some time later and find that it has gone "flat," and that it has gotten warm (20°C).
What appears to be the targeted debt ratio of a firm : What appears to be the targeted debt ratio of a firm that issues $15 million in bonds and $35 million in equity to finance its new capital projects.
How large an airy disk spot of red will form on a screen : Jeffery drills a very tiny hole in a sheet of brass. The hole is 0.001 inches in diameter. How large an Airy disk spot of red will form on a screen

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the cost of preferred stock

ABC corporation can sell preferred stock for $70 with an estimated flotation cost of $2.50. It is anticipated that the preferred stock will pay dollar six each share in dividends.

  What interest rate is the bank advertising

The Fine print in the ad says that for a $5000 deposit, the bank will pay $100 every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the rate of return of this investment?)

  Construct an example of the cycle of money

Construct an example of the cycle of money, identify all the players involved, and identify their individual benefits from participating in the cycle of money.

  Compares the finances of ford motor company

Compares the finances of Ford Motor Company

  Why must opportunity costs must be included in cash flows

Why must opportunity costs must be included in cash flows, while sunk costs and interest expense must not?

  Determining the proper cash flow amount

Determine the proper cash flow amount to use as initial investment in fixed assets when estimating this project? Describe why?

  What would his dollar profit on the rights be

How many rights could Todd buy with his $4,800? Alternatively, how many shares of stock could he buy with the same $4,800 at $66 per share?

  Insurance company as a financial intermediary

he savings rate domestically has raised, probably due to uncertainty about the future. All else equal, how should this affect market interest values?

  By how much did the companys retained earnings increase

Polycom Systems earned $480 million last year and paid out 20 percent of earnings in dividends.

  Lottery payments per year

The lottery is $60,000,000 and the state offers to pay you $3,000,000 per year for the next twenty years, or you can take the lump sum today of $29,500,000.

  Estimate the expected real rate of return

If the real rate of return is expected to be the same for the thirty-year bond as for the ten-year bond, estimate the average annual inflation rate expected by investors over the life of the thirty-year bond.

  What is the effective annual rate

Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers.

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