While stock b comprises 30 of the portfolio if the variance

Assignment Help Finance Basics
Reference no: EM13478996

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 21%, while stock B has a standard deviation of return of 27%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is .045, the correlation coefficient between the returns on A and B is _________.

i) .707
ii) .191
iii) .212
iv) .495

Reference no: EM13478996

Questions Cloud

Cmp9400b eories play a vitally important role in guiding : eories play a vitally important role in guiding research and organizing and making sense of research findings. in spite
T unit 3 module 3 - m3 assignment 2 : ltbrgtunit 3 module 3 - m3 assignment 2 ltbrgt ltbrgt ltbrgt ltbrgt ltbrgt ltbrgt ltbrgtdropbox
Vitamin d as supplement to anti-biotic therapy in treatmen : the topic is ltbrgt 39393939vitamin d as supplement to anti-biotic therapy in treatment of latent
The preferred stock of ciso inc pays an annual dividend of : the preferred stock of ciso inc. pays an annual dividend of 6.50 a share and sells for 48 a share. what is cisos cost
While stock b comprises 30 of the portfolio if the variance : a portfolio is composed of two stocks a and b. stock a has a standard deviation of return of 21 while stock b has a
If neguss annual sales are 4380000 and all sales are on : negus enterprises has an inventory conversion period of 50 days an average collection period of 35 days and payables
In october 2012 average house price in the united states : in october 2012 the average house price in the united states was 223500. in october 2003 the average price was 285000.
Mr miser loans money at an annual rate of 19 percent : mr. miser loans money at an annual rate of 19 percent interest with daily compounding. what is the effective annual
You have the opportunity to purchase an insurance policy : question 1you have the opportunity to purchase an insurance policy for your newborn son. you must make the payments

Reviews

Write a Review

Finance Basics Questions & Answers

  Assuming that the annuity will end with your friends life

Now answer part (A) assuming that the annuity will end with your friend's life, he is currently 45 years old. Show your calculations.

  What are potential risks to the public and to stakeholders

How do ethics codes apply to project selection and capital budgeting? What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders?

  What were the baldwin corporation total assets

Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $128.165 million Total Common Stock of $6.350 million Cash of $10.050 million Retained Earnings of $45.041 million. What were the Baldwin Corporation's to..

  Computing npv if discount rate is given

Briarcrest Condiments is spice-making firm. Newly, it developed new process for producing spices. Compute the NPV if discount rate is 13.74%?

  Finance based objective questions

If you have a salary of $30,000, an IRA decrease of $2,000, a standard deduction of $4,400, and a FICA rate of 7.65 percent, determine how much did you pay in FICA this year?

  What is super company debt to equity ratio

Super Company has total assets of $6 million, current assets of $2 million, total liabilities of $1.5 million, current liabilities of $750,000, and stockholders' equity of $4.5 million. What is Super Company's debt to equity ratio?

  Calculate the price of the bond

Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10% annual interest. The current yield to maturity on such bonds in the market is 7%.

  Discuss stock price maximization and profit maximization

Discuss and explain the difference between stock price maximization and profit maximization? Under what conditions might profit maximization not lead to stock price maximization?

  What is the yield that trevor would earn

what is the yield that Trevor would earn by selling the bonds today? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

  Conceptually most right capital budgeting method

What is your suggestion on this project according to conceptually most right capital budgeting method.

  Identify ethical actions

The net income of Simon and Hobbs, a department store, reduced sharply during 2000. Carol Simon, owner of the store, anticipates the required for a bank loan in 2001.

  Management team identifies a security software firm

Management team identifies a security software firm,

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