What is the standard deviation of the portfolio

Assignment Help Financial Management
Reference no: EM13878211

A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.3. What is the standard deviation of the portfolio?

Reference no: EM13878211

Questions Cloud

Paper on on the beastie boys vs goldiebox lawsuit : Need a paper written on the Beastie Boys v Goldiebox lawsuit. It needs to show which position I support such as the Beastie Boys or Goldiebox
About the finance undergraduate degree : Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. What init..
Develop a public interest case for the regulation of barbers : If a regulatory agency determines electric prices on the basis of a fair rate of return on investment," how might its price-setting standard affect the use of fuels in producing electricity? Would fuel oil producers favor the fair-rate-of-return m..
Calculate the net present value with required return : Calculate break -even in dollars given the following information; sales of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000. Remember, you cannot have partial units, so you need to round if the answer is decimal.
What is the standard deviation of the portfolio : A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.3. What is the standard deviation of the portfolio?
Using the free cash flow valuation model : Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valuation model?
Develop a public interest case for the regulation of barbers : If a regulatory agency determines electric prices on the basis of a fair rate of return on investment," how might its price-setting standard affect the use of fuels in producing electricity? Would fuel oil producers favor the fair-rate-of-return m..
What is the value of this company stock : Dream flower is a new company listed on NY Stock Exchange. The company today announced dividend of $2.00 (Dividend in year 0). Investors expect that dividend will grow at 6% annually for 10 years. The dividend growth rate from year 11 will be reduced..
Determine the maximum weight of the bucket : Determine the maximum weight of the bucket that the wire system can support so that no single wire develops a tension exceeding 100lb.

Reviews

Write a Review

Financial Management Questions & Answers

  Motives for holding cash-issues short-term debt

GT Motors regularly issues short-term debt to finance its daily operations. Suddenly, the credit markets froze and no funds were available for borrowing. Fortunately, the firm had some cash reserves saved that it was able to use to fund its operation..

  Should china be forced to alter the value of its

should china be forced to alter the value of its currency?the united states and the european union members are

  Compute the macaulay duration

Compute the Macaulay duration of a ten-year 6% $1,000 bond having annual coupons and a redemption of $1,200 if the yield to maturity is 8%.

  Describe preferred timing and objectives of business plan

Based on the organization you selected, write a critical risk assessment and milestones schedule of 350-500 words (plus a spreadsheet) that addresses the following (guidelines): Describe the preferred timing and objectives of your business plan.

  What is the current share price of the stock

DBP Inc. just paid a dividend of $4.00. The expected growth rate of dividend is 4 percent. The required return for investors in the first three years is 15 percent and 13 percent for the following three years. After those six years the required retur..

  What is the growth rate of the firm

We know the following about Ryan Inc. The net profit margin is .10, the ATO is 4 and the leverage ratio is 1.6. Compute the ROE. If the dividend payout ratio is .5, what is the growth rate of the firm? The equity book value is $100 million and the fi..

  Lockboxes should be located

Lockboxes should be located?

  Local finance company quotes interest rate on year loan

A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $25,000, the interest for the year will be $4,250. Because you must repay a total of $29,250 in one year, the finance company requires you to pay $29,250/1..

  Risk-free rate of return and expected return on the market

The beta of M Simon Inc., stock is 1.3, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?

  Obtain information about corporate bonds

Go to a financial Web site, such as finance.yahoo.com, google.com/finance, or moneycentral.msn.com. Obtain information on the yields and maturity for: U.S. treasuries, Municipal bonds, Corporate bonds

  What is the value of your firms stock

Suppose your company is expected to grow at a constant rate of 6 percent long into the future. In addition, its dividend yield is expected to be 8 percent. If your company expects to pay a dividend equal to $1.06 per share at the end of the year, wha..

  Recommendation to purchase upstart software

Obsolete Computer Systems, Inc. wants to emerge as a major producer of computer software. The company has two options: Either it can purchase Upstart Software for $25m now whose products are expected to survive 5 years. As a member of Obsolete’s boar..

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