What is the smallest expected loss for portfolio

Assignment Help Financial Management

Reference no: EM131354619

Tyler Trucks stock has an annual return mean and standard deviation of 9 percent and 28 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 20 percent and 64 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is .5. What is the smallest expected loss for your portfolio in the coming month with a probability of 16 percent? (Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response. Round your answer to 2 decimal places.)

Smallest expected loss %

Reference no: EM131354619

Questions Cloud

Quantitative analysis for management : Quantitative Analysis for Management (Twelfth Edition Pearson) Barry Render, Ralph Stair, Michael Hanna and Trevor Hale. Which one will you choose - a simple model with reasonable accuracy or a complex model with a marginally better accuracy than the..

Employed by senior executives with stron ethical convictions : Which of the follwoing actions would not typically be employed by senior executives with stron ethical convictions?

Emergency management and homeland security : Are they one in the same? Is emergency management part of homeland security, or is homeland security part of emergency management? Based on your readings and experience, respond to this topic by stating what your personal thoughts are on this issue..

Prepare a simple balance sheet of assets : Assume that Banc One receives a primary deposit of $1 million.- Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.

What is the smallest expected loss for portfolio : Tyler Trucks stock has an annual return mean and standard deviation of 9 percent and 28 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 20 percent and 64 percent, respectively. What is the ..

Suggest the most significant impact globalization has had : Determine what you believe to be the most influential external environment factor shaping organizational culture for managers and business leaders in the 21st century. Provide support for your rational.

Propose a strategy to take the current conversation : Imagine that you are the marketing manager for the company from the post in Part I of this discussion. In order to support your social media marketing strategy, it is your job to stimulate the conversation to a new line. Propose a strategy to take..

Data collection will you conduct before beginning : What further data collection will you conduct before beginning to write your plan? What will be the elements of your plan? For each element, who will be the key players and what will be their roles?

What is the smallest expected loss for this portfolio : You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 12 percent and 16 percent, respectively. The standard deviations of the assets are 36 percent and 44 percent, respectively. What is the smalle..

User Account

All Pages