What is the risk of an equal-weighted portfolio consisting

Reference no: EM13925572

What is the risk of an equal-weighted portfolio consisting of five stocks, each with 35 percent volatility and a 50 percent correlation with all other stocks? How does that decrease as the portfolio increases to 20 stocks or 100 stocks?

Reference no: EM13925572

Questions Cloud

What is the volatility of monthly ge returns : If GE has an annual risk of 27.4 percent, what is the volatility of monthly GE returns? Stock A has 25 percent risk, stock B has 50 percent risk, and their returns are 50 percent correlated.

Sinusoidal wave is described by the equation v : Assume as sinusoidal wave is described by the equation v(t) = 100 v sin(200t + 0.52). (a) From this expression, determine the peak voltage, the average voltage, and the angular frequency is rad/s. (b) Find the instantaneous voltage at a time of 2..

Can measure an employee''s commitment to the organization : There are a variety of reactions depending on the title or status of the individual. If you followed your thought of return on investment, can you really measure an employee's commitment to the organization?

Individual assessing the business value of outsourcing : Write a 2- to 3-page response to one of the following questions: How might Riordan Manufacturing assess the business value delivered by an outsourcing relationship?

What is the risk of an equal-weighted portfolio consisting : What is the risk of an equal-weighted portfolio consisting of five stocks, each with 35 percent volatility and a 50 percent correlation with all other stocks?

Describe and compare non-parametric tests : Describe and compare non-parametric tests with other commonly used distribution-based tests; and describe why such tests are critical. Use credible resources to support why the tests are critical

Responsibilities of a chief information security officer : What are the responsibilities of a chief information security officer? Where and how does the person occupying this position fit into a large enterprise?

What is the total amount of current liabilities : What is the total amount of current liabilities at December 31,2013?

Calculate cost of goods available for sale : Floozy uses the period method and had the following inventory events during January: Calculate cost of goods available for sale.

User Account

All Pages