What is your portfolio standard deviation

Assignment Help Financial Management
Reference no: EM131890992

1. Alpha Industries stock had returns of 17 percent, -11 percent, 9 percent, and 2 percent for four of the last five years, respectively. The average return of the stock over this period was 8.7 percent. What is the standard deviation of the stock's returns?

2. Stock X has a standard deviation of 21 percent per year and stock Y has a standard deviation of 6 percent per year. The correlation between stock A and stock B is .38. You have a $13,500 portfolio of these two stocks wherein you have invested $5,670 in stock X. What is your portfolio standard deviation?

Reference no: EM131890992

Questions Cloud

Describe the market placement of your product : Describe the market placement of your product. This can be integrated into your pricing strategy argument.
Build your own method for solving the linear system : Use the described general schema to build your own method for solving the given linear system. Implement your algorithm and then compare results
Vanderbilt afford to pay today for refinancing charges : how much can Mrs Vanderbilt afford to pay today for refinancing charges?
Determine the company cost of capital : 1) What would be the proper calculation to find the company's debt/equity ratio. 2) Determine the company's cost of capital.
What is your portfolio standard deviation : Stock X has a standard deviation of 21 percent per year and stock Y has a standard deviation of 6 percent per year. What is your portfolio standard deviation?
What is the most you would pay for this bond : Your opportunity cost of invested funds is 13.0%. What is the most you would pay for this bond?
Examine major complexities that would arise under expansion : Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent.
What would be the total cost of the job : Suppose a job required parts costing $370 and technician time costing $185. What would be the total cost of the job?
What is the npv associated with leasing the equipment : a. What is the NPV associated with leasing the equipment versus borrowing and buying? it?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected dollar profit from speculation

What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation?

  Investment policy

The Perpetual Life Ins. Co. is trying to sell you an investment policy that will pay you and your heirs one payment per year forever.

  What is the current price of this preferred stock

The National Bank of Columbia has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.50 on this stock. What is the current price of this preferred stock given a required rate of return of 8.5 percent? Pri..

  Describe the impact of the coupon rate and yield to maturity

Describe the impact of the coupon rate and yield to maturity (YTM) on the bond par value and market value.

  Lowest expected level of sales quantity

Which one of the following is a correct value to use if you are conducting a best-case scenario analysis? Sales price that is most likely to occur, Lowest expected level of sales quantity, Lowest expected salvage value

  What is the duration of four-year treasury bond

What is the duration of a four-year Treasury bond with a 6.5 percent semiannual coupon selling at par?

  The seller of forward contract agrees

When a firm hedges a risk it: The term "derivatives" refers to: The seller of a forward contract agrees to:

  Capital in excess of par account after stock dividend

What will be the capital in excess of par account after the stock dividend?

  What are company capital structure weights on book value

Book Value versus Market Value; Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. What are the company’s capital structure weights on a book value basis? What a..

  Weight of each stock in the minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 32 percent, and Stock I, an international company, with an expected return of 10 percent and a standard deviation of 20 percent. The correlation between t..

  Ethical considerations-mitigate for the environmental impact

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. Calculate the NPV and IRR with mitigation. Under the assumption that all costs h..

  What is the net present value of acquiring

ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share. XYZ has 2,500 shares outstanding at a price of $28 a share. XYZ is acquiring ABC for $36,000 in cash. The incremental value of the acquisition is $3,..

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