The weight of each stock in minimum variance portfolio

Assignment Help Financial Management

Reference no: EM131361735

Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 35 percent, and Stock I, an international company, with an expected return of 8 percent and a standard deviation of 23 percent. The correlation between the two stocks is –.21. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Weight of Stock D Weight of Stock I

Reference no: EM131361735

Questions Cloud

What are the reward-to-risk ratios : Stock Y has a beta of 1.15 and an expected return of 15.65 percent. Stock Z has a beta of .60 and an expected return of 7 percent. If the risk-free rate is 4.0 percent and the market risk premium is 9.2 percent, what are the reward-to-risk ratios of ..

Marketable securities for lockbox system to be beneficial : Flashbinder Guitars, Inc. is considering a lockbox system that will increase its check processing cost by $.15 per check. The company estimates an average check size of $1,700 and expects the lockbox to reduce check collection time by 3 days. What an..

Philosophic contributions of hellenistic greece : What were the most important cultural, scientific, political, or philosophic contributions of Hellenistic Greece? Why? Why did these contributions have such an impact on the rest of the known world at the time?

Find a minimum-weight vertex cover of g : Let G = (V,E) be a tree with arbitrary weights associated with the vertices. Give an efficient algorithm to find a minimum-weight vertex cover of G.

The weight of each stock in minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 35 percent, and Stock I, an international company, with an expected return of 8 percent and a standard deviation of 23 percent. The correlation between th..

Visit the national archives experience : For this assignment, you need to visit the National Archives Experience. Historians typically use two types of materials, secondary source, and primary source documents. Secondary sources are typically books and articles written on a particular hi..

Considering an acquisition : Donovan Inc. is considering an acquisition of Gilhooly Corp. Donovan has 3,809,153 shares outstanding selling for $41.63. Gilhooly has 1,935,728 shares outstanding selling for $26.71. What are the market values of both firms? In a stock-for-stock off..

Describe the mongol invasions of japans under kublai khan : Write an essay in which you describe the Mongol invasions of Japans under Kublai Khan. What was the purpose of these invasions? How successful were the much- vaunted Japanese samurai against an organized Mongol army

Convert from an adjacency matrix to adjacency lists : Present correct and efficient algorithms to convert an undirected graph G between the following graph data structures. You must give the time complexity of each algorithm, assuming n vertices and m edges.

User Account

All Pages