Question

You have a portfolio with a standard deviation of 26 % and an expected return of...

You have a portfolio with a standard deviation of 26 % and an expected return of 17 %. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20 % of your money in the new stock and 80 % of your money in your existing​ portfolio, which one should you​ add?

Expected Return Standard Deviation Correlation with your portfolios return
Stock A          13%            25%                               0.3
Stock B          13%            20%                               0.6

a) The standard deviation of the portfolio with stock A is ............%. ​(Round to two decimal​ places.)

b) Standard deviation of the portfolio with stock B is .............%? (Round to two decimal​ places.)

c) Which stock would you add to your portfolio?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Add a comment
Know the answer?
Add Answer to:
You have a portfolio with a standard deviation of 26 % and an expected return of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You have a portfolio with a standard deviation of 26% and an expected return of 20%....

    You have a portfolio with a standard deviation of 26% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return 12% 12% Standard Deviation 24% 19% Correlation with Your Portfolio's Returns 0.4 0.6 Stock A Stock B Standard deviation...

  • You have a portfolio with a standard deviation of 30 % and .an expected return of...

    You have a portfolio with a standard deviation of 30 % and .an expected return of 15 %. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30 % of your money in the new stock and 70 % of your money in your existing​ portfolio, which one should you​ add? Expected Return: (ER) Standard Deviation:(STNDDEV) Correlation with Your​ Portfolio's Returns(Corr) Stock A (ER) 15​% (STNDDEV)25​% (Corr)0.3 Stock...

  • You have a portfolio with a standard deviation of 20% and an expected return of 20%....

    You have a portfolio with a standard deviation of 20% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing​ portfolio, which one should you​ add? Expected Return Standard Deviation Correlation with Your​ Portfolio's Returns Stock A 15​% 22​% 0.4 Stock B 15​% 18​% 0.6 Standard deviation...

  • You have a portfolio with a standard deviation of 28% and an expected return of 17%....

    You have a portfolio with a standard deviation of 28% and an expected return of 17%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return 16% 16% Standard Deviation 21% 16% Correlation with Your Portfolio's Returns Stock A Stock B 0.3 0.7 Standard deviation...

  • P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are...

    P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Expected Return Standard Correlation with Your Portfolio's Returns Deviation Stock A 16% 21% 0.2 Stock B...

  • Standard deviation must be rounded to two decimal places. You have a portfolio with a standard...

    Standard deviation must be rounded to two decimal places. You have a portfolio with a standard deviation of 30% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Correlation with Your Portfolio's Returns Expected Return 16% 16% Standard Deviation 23%...

  • P 12-18 (similar to) Question Help You have a portfolio with a standard deviation of 26%...

    P 12-18 (similar to) Question Help You have a portfolio with a standard deviation of 26% and an expected return of 15% You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20 % of your money in the new stock and 80 % of your money in your existing portfolio, which one should you add? Еxpected Standard Correlation with Your Portfolio's Retuns Return Deviation Stock A Stock B...

  • You have a portfolio with a standard deviation of 20% and an expected retum of 17%....

    You have a portfolio with a standard deviation of 20% and an expected retum of 17%. You are considering adding one of the two stocks in the following table. If her adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Return 12% 12% Standard Deviation 24% 195 Correlation with Your Portfolio's Returns 02 Stock A Stock B Standard deviation of...

  • Problem #5 (12 Marks) You have a portfolio with a standard deviation of 30% and an...

    Problem #5 (12 Marks) You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks in the table below to your portfolio. After adding the stock, you will have 20% of your money in the new stock and 80% of your money in your existing portfolio. A) Calculate the risk and return of a new portfolio with 20% invested in stock A and 80% in your...

  • a. The expected rate of return for portfolio A is The standard deviation of portfolio A...

    a. The expected rate of return for portfolio A is The standard deviation of portfolio A is a. The expected rate of return for portfolio B is The standard deviation of portfolio B is Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT