What is the standard deviation of the portfolio

Assignment Help Accounting Basics
Reference no: EM133122578

Question - Suppose you have a portfolio that is 30% in the risk-free asset and 70% in a stock. The stock has a standard deviation of 0.30 (i.e., 30%). What is the standard deviation of the portfolio?

Reference no: EM133122578

Questions Cloud

Determine the geometric average rate of return : On December 31, 2000, the S&P 500 index was 1,469.25. Twenty-one years later, on December 31, 2021, the Index was 4766.18.
What is the annual depreciation expense : Markov Manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. The ?rm expects that this equipment will have
Researching news stories for company ethics : Organizations are faced with ethical dilemmas on a regular basis. Researching news stories for company ethics.
What is the dividend payout ratio : Fielding PLC reported earnings of £69.2m, preference dividends of £11.8m and ordinary dividends of £22.5m. Ignoring tax, what is the dividend payout ratio
What is the standard deviation of the portfolio : Suppose you have a portfolio that is 30% in the risk-free asset and 70% in a stock. What is the standard deviation of the portfolio
Determining the terminal growth rate : Betzy Inc. is a relatively new company. The company's prior year's (starting) free cash flow was found to be $185,000. The company currently has $35,000 in debt
Cms reimbursement and essential cms : Describe the schedules of CMS. Provide an example of a charge for each schedule. Describe the case mix concept that alters payment rates.
What is the single period expected return : Assume you have $1 million Cash and are trying to choose among three securities to invest.
Different stock exchanges : Identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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