What is the expected return of a portfolio

Assignment Help Financial Accounting
Reference no: EM132484940

Consider two stocks, C and D, with their expected returns and standard deviations, as follows:

                                     Stock C        Stock D

Expected return        20%             15%

Standard deviation   12%              9%

Question a. What is the expected return of a portfolio containing 30% of Stock C and 70% of Stock D? Express your answers in percent with two decimals.

Question b. What is the standard deviation of the portfolio if the correlation coefficient between the returns of the two stocks is 0.8? Express your answers in percent with two decimals.

Reference no: EM132484940

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Sold accounts have been collected

What entry would be made on the company's book when sold accounts have been collected

  Prepare an income statement for coc for the year

Prepare an income statement for COC for the year ending December 31, Year 8.- Prepare a comparative balance sheet for COC on December 31, Year 7, and December 31, Year 8.

  Overhead allocation based solely on measure of volume

Overhead allocation based solely on a measure of volume such as direct labor-hours or number of students will systematically overcost high-volume products and undercost low-volume products. In other words, a course with higher enrollment will apprear..

  How much depreciation should be taken

It also is 5-year recovery property. How much depreciation should be taken for 2010 assuming the company uses the accelerated depreciation method under MACRS, but does not choose to make the election to expense or to take bonus depreciation

  Compute the equivalent units of work performed

The Assembly Department had 60,000 units 60 percent ?complete in Work-in-Process Inventory at the beginning of April. During April, the department started and completed 160,000 units. The department started another 40,000 units and completed 30% as o..

  List errors you find in the following statement of cash flow

List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year.

  How much suspended loss can be taken on mr mapp final

John Mapp dies with passive activity property having an adjusted basis of $50,000, suspended losses of $20,000, and a fair market value at the date of Mr. Mapp's death of $77,000. How much suspended loss can be taken on Mr. Mapp's final Form 1040..

  Journalize the transactions for the month of july

Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system - Ready-Set-Go's chart of accounts includes

  For each of the following errors describe to a recently

for each of the following errors describe to a recently hired bookkeeper how it would be shown on a cash

  Why do think individuals have problems starting to save

Why do you think individuals have problems starting to save? How can someone lose track of where they spend their money? Are there standard excuses?

  Prepare journal entries for sarasota to record the sale

On March 10, 2017, Sarasota Company sold to Barr Hardware 170 tool sets at a price of $50 each (cost $32 per set) with terms of n/60, f.o.b. shipping point. Sarasota allows Barr to return any unused tool sets within 60 days of purchase. Prepare journ..

  Which one is not a accurate practice under the gaap

ARB 43 noted that there are two separate types of intangibles: those having a term of existence limited by regulation and others and those having no such terms of existence

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