49 | Asset 1 has an expected return of 10% and a standard deviation of 20%....
asset 1 has an expected return of 10% and a standard deviation of 20%. Asset 2 has an expected return of 15% and a standard deviation of 30%. the correlation between the two assets is -1.0. portfolios of these two assets will have a standard deviation of what?
Expected Return of Asset 1 = 10% Expected Return of Asset 2 = 15% The standard deviation of Asset 1's return = The standard deviation of Asset 2's 3% return = 5% The proportion of the capital invested in Asset The proportion of the capital invested in 1 = 30% Asset 2 = 70% Calculate the standard deviation of the portfolio consisting of these two assets when the correlation coefficient between Asset 1 and Asset 2 is 0.40. Select one:...
Suppose there are three assets: A, B, and C. Asset A’s expected return and standard deviation are 1 percent and 1 percent. Asset B has the same expected return and standard deviation as Asset A. However, the correlation coefficient of Assets A and B is −0.25. Asset C’s return is independent of the other two assets. The expected return and standard deviation of Asset C are 0.5 percent and 1 percent. (a) Find a portfolio of the three assets that...
Asset K has an expected return of 10 percent and a standard deviation of 28 percent. Asset L has an expected return of 7 percent and a standard deviation of 18 percent. The correlation between the assets is 0.40. What are the expected return and standard deviation of the minimum variance portfolio?
Asset K has an expected return of 16 percent and a standard deviation of 35 percent. Asset L has an expected return of 10 percent and a standard deviation of 16 percent. The correlation between the assets is 0.58. What are the expected return and standard deviation of the minimum variance portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return Standard deviation
Asset 1 has 6% expected return and 5% standard deviation.Asset 2 has 12% expected return and 10% standard deviation A. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have an expected return larger than 6%. B. If the correlation coefficient is equal to one, then no portfolio obtained by combining assets 1 and 2 can have a standard deviation lower than 5%. C. If the correlation coefficient is less...
Stocks A and B each have an expected return of 15%, a standard deviation of 17%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of <1.0. You have a portfolio that consists A) The portfolio's beta is less than 12. B) The portfolio's standard deviation is greater than 17%. C) The portfolio's standard deviation is less than 17%. D) The portfolio's expected return is 15%.
3. Consider Table 2. Table 2 Stock Expected Return 2 12% 6% Standard Deviation 20% 10% 0.20 Correlation Coefficient (a) Consider Table 2. Compute the expected return and standard deviation of return of an equally-weighted (b) Consider Table 2. Solve for the composition, expected return and standard deviation of the minimum (c) Consider Table 2. Sketch the set of portfolios comprised of stocks 1 and 2. Be sure to include the portfolios (d) Consider Table 2. Suppose that a risk-free...
Portfolio D has an expected return rD= 10% and a standard deviation = 30%. Portfolio E has an expected return rE = 20% and a standard deviation =40%. The correlation coefficient = +0.25. If I want to combine these 2 portfolios to earn an expected return rp = 16%, what will be my portfolio standard deviation to the NEAREST xx.xx%? a) 20.88% b) 24.00% c) 26.91% d) 29.39% e) None of the above
0/1pts Question 1 Suppose you have the following: Expected return Standard deviation 9% Asset A 10% 4% Asset B 5% If the correlation between Asset A and Asset B returns is 0.60, and the portfolio has 40% invested in Asset A and the remainder in Asset B, what is the portfolio's standard deviation? Report in decimal form with at least four decimal places. You Answered Correct Answers 0.0539 (with margin: 0.0002) 0/1pts Question 1 Suppose you have the following: Expected...