What is the expected return and risk of the portfolio

Assignment Help Financial Management

Reference no: EM131338688

Security A offers an expected return of 15 percent with a standard deviation of 7 percent. Security B offers an expected return of 9 percent with a standard deviation of 4 percent. The correlation between the returns of A and B is +0.6.

If an investor puts one-fourth of his wealth in A and three-fourths in B, what is the expected return and risk (standard deviation) of this portfolio?

Reference no: EM131338688

Questions Cloud

Research cignas the companys culture : Summarize your review and research.Display the characteristics displayed by your company's abilities as a learning organization.Explain how your company's culture and learning organizational abilities may support or detract from a change initiative.

What is the expected return on portfolio : If you invest 30 percent of your funds in Koch stock and 70 percent in Uptown stock, what is the expected return on your portfolio?

Perfectly competitive firm is producing : A perfectly competitive firm is producing at an output level under the the market price = $125 per unit, while the ATC = $130, AVC = $120, and MC = $125 at that output level. The firm should

Discuss whether the multi-national corporation : Discuss whether the multi-national corporation (MNC) will risk be over-hedged its position to the extent affect the company's financial position.

What is the expected return and risk of the portfolio : If an investor puts one-fourth of his wealth in A and three-fourths in B, what is the expected return and risk of the portfolio?

Find the angle of elevation of the sun : National Monuments In 1906, Teddy Roosevelt designated Devils Tower National Monument in northeast Wyoming as the first national monument in the United States. The tower rises 1280 feet above the valley of the Bell Fourche River.

System requires initial investment in net working capital : Franks is looking at a new sausage system with an installed cost of $515,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $77,000. The sausage syste..

Main pros and cons for economic sanctions : 200 words please list references In reference to the material below: what specific objectives would sanctions have in this case? (a) What are the main pros and cons for economic sanctions against the regime and/or the armed groups that are fighting..

Discuss a specific time when you observed a contradiction : Discuss a specific time when you observed a contradiction between: (a) the core values that your organization espouses and (b) the values reflected by the organization's policies or leaders' decisions or actions. To spark your thought process, exa..

User Account

All Pages