### What is the standard deviation of the portfolio

Assignment Help Financial Management
##### Reference no: EM131821567

Security F has an expected return of 11.1 percent and a standard deviation of 44.1 percent per year. Security G has an expected return of 16.1 percent and a standard deviation of 63.1 percent per year. a. What is the expected return on a portfolio composed of 29 percent of Security F and 71 percent of Security G? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Expected return % b. If the correlation between the returns of Security F and Security G is .24, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

#### Questions Cloud

 Journal entry to record the issuance of the bonds on january : Wildhorse Co. is building a new hockey arena at a cost of \$2,620,000. Journal entry to record the issuance of the bonds on January 1, 2016 How much money should he invest now in order : How much money should he invest now in order to have the same amount of money in 20 years as Hailey? What is the correlation between the returns of the two stock : What is the correlation between the returns of the two stocks? What is the covariance between the returns of the two stocks? Statement of stockholders equity reconciles the net income : Stockholders' equity Aa The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, What is the standard deviation of the portfolio : If the correlation between the returns of Security F and Security G is .24, what is the standard deviation of the portfolio described in part (a)? Identify critical data items for the ehr system : The new EHR system will need to collect, store and process data. An example of needed data is "Name of Patient." What is the payback period of the investment : A Company is considering an investment of \$600,000 in a new motorcycle model. They expect to increase sales in each of the next three years by \$400,000. Calculate muscateer trend analysis for revenues : Calculate Muscateer's trend analysis for revenues and net income. Use 2014 as the base year, and round to the nearest percent. Statement reports data for its first year of operation : Cold Goose Metal works Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year.

### Write a Review

#### Compute the expected spot rate next year

Use the parity conditions of international finance to compute the expected spot rate next year,- U.S. risk-free rate.

#### What is the book value per share

Dudley Hill Golf Club's common stock is currently selling at \$12.00 per share. What is the book value per share?

#### Summarize your key points for body shop international case

Summarize your key points for the Body Shop International case from last week. What were results of any analysis and what were your key takeaways/conclusion.

#### Earnings before interest and taxes next year

Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of \$ 2.4 million.

#### Expected to pay dividends over the next four years

Apocalyptica Corporation is expected to pay the following dividends over the next four years: \$6.20, \$17.20, \$22.20, and \$4.00. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends, forever. If the required retur..

#### What is the reconciled balance

Your checkbook balance shows \$806.50. The bank statement shows \$874.66. The bank paid you \$2.50 in interest. You issued Checks 1501 (\$85), 1507 (\$50.16), and 1511 (\$20.50), but they are not shown on the statement. A service charge of \$5 was levied by..

#### Analyzing project that requires an initial investment

Cold Goose Metal Works is analyzing a project that requires an initial investment of \$2,750,000. The project's expected cash flows are: Year 1 (\$350,000), Year 2 (-100,000), Year 3 (450,000), Year 4 (475,000). The company's WACC is 10%, and the proje..

#### What is portfolios expected return and standard deviation

Irene Adler is considering investing in the common stock of Holmes and Watson. If she invests 60% of her funds in Holmes and 40% in Watson, and if the correlation of returns between these two securities is 0.45, what is the portfolio’s expected retur..

#### What must be the risk-free interest rate

You buy a share of stock, write a one-year call option with X = \$20, and buy a one-year put option with X = \$20. Your net outlay to establish the entire portfolio is \$18.60. What must be the risk-free interest rate?

#### What is the future value of his contribution

Suppose that the cleanup hitter for the Atlanta Braves promises to donate \$614.00 for every homerun he hits. what is the future value of his contribution?

#### What should current rate be on two-year treasury securities

Liquidity Premium Hypothesis One-year Treasury bills currently earn 5.85 percent. You expect that one year from now, one-year Treasury bill rates will increase to 6.10 percent. The liquidity premium on two-year securities is .110 percent. If the liqu..

#### Describe the profit maximisation concept

Describe the ‘profit maximisation’ concept and discuss why a finance manager who focuses on this approach will not likely to achieve the firm’s fundamental financial objective. Explain how the concept of risk aversion may relate to investment decisio..