What is the standard deviation two-stock portfolio

Assignment Help Financial Management
Reference no: EM13730472

What is the standard deviation of the following two-stock portfolio where A and B are equally weighted? E (R ) A: 25% B.12% STD A:30% B.20% Coefficient Correlation -.8 Portfolio STD?

Reference no: EM13730472

Questions Cloud

Determinant of an investments portfolio risk : The most important determinant of an investment's portfolio risk is which of the following? If a bank pays quarterly compounding on its savings accounts, the ending amount after one year on a $1,000 deposit will be less than if the bank paid annual c..
Does it appear that sbh has an overall marketing plan : Does it appear that SBH has an overall marketing plan, Does it appear that SBH had a significant grasp of the nature of marketing
What is the yield to maturity of a zero coupon bond : What is the yield to maturity (YTM) of a zero coupon bond with a face value of $1,000, current price of $730 and maturity of 7 years? Recall that the compounding interval is 6 months and the YTM, like all interest rates, is reported on an annualized ..
How much depreciation will blip write off in year : Blip Ind. purchased a new Bobber for $23,999. The new Bobber will be depreciated straight-line to $3,400 salvage over 6 years. How much depreciation will Blip write off in year 5?
What is the standard deviation two-stock portfolio : What is the standard deviation of the following two-stock portfolio where A and B are equally weighted? E (R ) A: 25% B.12% STD A:30% B.20% Coefficient Correlation -.8 Portfolio STD?
Brief description of the support idea : After each student has found the 3 examples, the partners should meet and choose ONE different company, A brief description of the support idea and why you think it is applicable for this company
What are sensing mechanisms : Consider Reading, Getting Information from Employees Who Know to Those Who Can and Will Respond. Develop a research paper that addresses the following:
Eclipse czt latex a final pdf from the czt latex is needed : Eclipse czt latex a final pdf from the czt latex is needed -  codes to the specification to run on eclipse
Portfolio consisting of risk free asset and market portfolio : Assume the market has a Treynor Index of 4.00%. What is the treynor index of your portfolio consisting of the risk free asset and the market portfolio weight on the market is 17% (and the balance is in the risk free security)? the Treynor Index of yo..

Reviews

Write a Review

Financial Management Questions & Answers

  Long-term and any-occupation disability policy available

Deshawn Carter has just received his open-enrollment notification and has asked you to assess his disability insurance coverage. He currently has a long-term, any-occupation disability policy available through his employer that pays a benefit of 8..

  Evaluate the proposal to purchase advanced machine

Calculate the payback period if advanced machine is purchased and calculate the net present value if advanced machine is purchased.

  Explain understanding of international finance at a point

Reflect on your understanding of International Finance at this point. What are some topics you currently find difficult to comprehend? What areas of this course do you find more engaging and interesting?

  Calculate the beta and then find the required return

Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free r..

  College education problem

To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?

  Capital structures-equity plan and levered plan

Rise Against Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 200,000 shares of stock outstanding. Under Plan II, there would be 150,000 shares o..

  What is the annual divendend on txs preferred stock

Preferred Stock valuation: TXS Manufacturing has an outstanding preferred stock issue with a par value of $61 per share. The preferred shares pay divendends annually at a rate of 11%. What is the annual divendend on TXS preferred stock?

  Problemst co is a closely held corporation incorporated

problemst co. is a closely held corporation incorporated under the laws of the state of delaware with 100 shares of

  Standard deviation and positive equity

A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and the standard deviation of 2% of assets. How much equity (as a percentage of assets) does the company need to be (a) 99% sure that it will have a posi..

  Finding the present value of all the cash inflows

You have estimated the value of a planned project by finding the present value of all the cash inflows from that project. Which of the following would cause the project to look more appealing (have a greater net present value)?

  How do your competencies relate to the essential

1.how can knowing your ideal work culture help you in developing strategic and operational plans to achieve

  The bond pays interest semi-annually

What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually.

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