What is the standard deviation of the portfolio

Assignment Help Financial Management
Reference no: EM131021164

Security F has an expected return of 10 percent and a standard deviation of 26 percent per year. Security G has an expected return of 17 percent and a standard deviation of 58 percent per year. We form a portfolio composed of 30 percent of security F and 70 percent of security G. If the correlation between the returns of security F and security G is .25, what is the standard deviation of the portfolio?

Reference no: EM131021164

Questions Cloud

What are the values of amax and amin : The transmission in the stop band, which extends from 5 kHz to ∞, should not exceed 0.05% of the maximum passband transmission. What are the values of Amax, Amin, and the selectivity factor for this filter?
Why are the melting points of ionic compounds higher : Why are the melting points of ionic compounds higher than the melting points of molecular compounds?
Why does a dna strand grow only in the 5''to 3'' direction : Why does a DNA strand grow only in the 5'to 3' direction?
Ethylene and polyethylene is true : Which of the following statements about ethylene and polyethylene is true?
What is the standard deviation of the portfolio : Security F has an expected return of 10 percent and a standard deviation of 26 percent per year. Security G has an expected return of 17 percent and a standard deviation of 58 percent per year. We form a portfolio composed of 30 percent of security F..
Write the equation for the straight line : Write the equation for the straight line that passes though the origin and the point (2, 4). In your answer show the work you did to find this equation. Then graph this equation. In your equation, what is the value of the slope of the equation and..
Problem regarding the adr arbitrage : China Telecom Corp. is simultaneously listed on Hong Kong Stock Exchange (HKSE) and New York Stock Exchange (NYSE). It trades as an ORD on the HKSE and as an ADR on the NYSE. The ordinary share (ORD) price of China Telecom is HKD 4 on HKSE. The sp..
A mass number of 127 : Tin (Sn), with a mass number of 127 and an atomic number of 50, decays by beta emission. Identify the product of the nuclear reaction by providing its atomic symbol (2 points), mass number (2 points), and atomic number
Calculate the cost to the bakery : Calculate the cost to the bakery if it takes delivery?

Reviews

Write a Review

Financial Management Questions & Answers

  The hotel to obtain maximum protection for the equipment

Terry is a computer salesperson, she is staffing a booth at a computer expo and has bought with her approximate $30000 worth of laptops what must she do vis-a vis the hotel to obtain maximum protection for the equipment? what if she fails to do so?

  System will be depreciated straight-line to zero

Your firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $59,000 at the end of that time. At what level of pretax cost ..

  Portfolio allocates equal funds

Your portfolio allocates equal funds to DW Co. and Woodpecker, Inc., DW Co. stock has an annual return mean and standard deviation of 10 percent and 31 percent, respectively. What is the smallest expected loss for your portfolio in the coming month w..

  Fixed costs-variable cost per unit-revenue per unit

Consider the following data: fixed costs = $10 million, variable cost per unit = $400, and revenue per unit = $1,200. For this organization, which of the following statements is most correct?

  Considering expanding the sales of its cappuccino machines

An Italian company is considering expanding the sales of its cappuccino machines to the U.S market. As a result, the idea of a setting up a manufacturing facility in the U.S should be explored. Why APV model is better than NPV model for capital budge..

  Forecast that for the next five years dividends will grow

The Amazing Video Co. has just paid an annual dividend of 40 cents. You forecast that for the next five years dividends will grow at the rate of 25% a year over the period. Draw the time line showing the dividends per share of this stock for years 1 ..

  Does use of private judges threaten our system of justice

Some experts argue that people should be allowed to hire Judges to resolve their disputes. Just like they can hire an attorney, they can hire a Judge. Currently, Judges are appointed by the Judicial branch for a period of time. Does the use of privat..

  Calculating present values

Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari. If you believe your mutual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must..

  What us the definition of a troubled debt restructuring

NYY corp., a calendar year firm, sold equipment to Red Sox nation Inc. on Jan 1, 2010 and received in return a note, due on Dec 31, 2013, with a face value of $1,000,000, and bearing interest at a standard rate of 3% per year. What us the definition ..

  Describe the trend of interest rates

Plot the current yield curve from the interest rates of U.S. Treasury securities as found in WSJ or IBD, or examine the chart WSJ or IBD provides. Describe the trend of interest rates over the last several years

  Raise the federal funds rate at the meeting

Fed Chairwoman Janet Yellen had indicated earlier this year that the FOMC should start to raise the rate this year. The FOMC can do so either at the October meeting or at the December meeting. Do you expect that the FOMC will raise the federal funds ..

  Find the cash break-even quantity

Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of..

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