What are the expected return and standard deviation

Assignment Help Financial Accounting
Reference no: EM133017460

Question - Mr. Martin has invested one-third of his fund in stock A and two-thirds of his fund in stock B. Expected returns of stock A and B are 15% and 21% respectively and standard deviation of returns of stock A and B are 18% and 25% respectively, correlation between the returns of A and B is 0.50. What are the expected return and standard deviation of return of Mr. Martin's portfolio?

Reference no: EM133017460

Questions Cloud

Calculated the industrial building allowances : Calculated the industrial building allowances for both companies for all the relevant years of assessment up to and including year of assessment 2020
What is the sustainable growth rate : Fortress of Solitude Co. expects an earnings per share of $1.95 and reinvests 35% of its earnings. What is the sustainable growth rate
What is the correct gross profit of the branch : On December 31, 2015, the branch continued to hold 45,000 of the units purchased from home office during 2019. What is the correct gross profit of the branch
Calculate effective annual interest of an investment : Calculate effective annual interest of an investment which pay 12.6 percent stated annual rate of interest compounded annually
What are the expected return and standard deviation : Expected returns of stock A and B are 15% and 21% respectively. What are the expected return and standard deviation of return of Mr. Martin's portfolio
What the food-to-liquor ratio for the period : The ?nancial records of Nana's Restaurant for the month of June indicate food sales were $562,500. What the Food-to-Liquor Ratio for the period
What is the balance in the accounts receivable account : Received a cheque from a customer whose account was previously written off: 480. What is the balance in the accounts receivable account at year end
What is the total annual dividend on the preferred shares : Ethel Inc. has 15,000, $3 non-cumulative preferred shares and 200,000 common shares issued. What is the total annual dividend on the preferred shares
What monthly payment can he expect to receive : If he invests the money into a perpetuity fund earning 5.5% compounded annually, what monthly payment can he expect to receive starting today

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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