calculare the standard deviation of a portfolio that contains 40% of one stock with a standard...
Homework Answers
Standard Deviation of portfolio = [(standard Deviation A)2)(Weight A)2 + (Standard Deviation B)2(Weight B)2 + 2(Standard Deviation A)(Standard Deviation B)(Weight A)(Weight B)(correlation coefficient)]1/2
= [(23)2(0.4)2 + (26)2(0.6)2 + 2(23)(26)(0.4)(0.6)(0.2)]1/2
= 19.63%
Add Answer to:
calculare the standard deviation of a portfolio that contains 40%
of one stock with a standard...
26) A portfolio has 40% invested in stock A and the rest invested in stock B....
26) A portfolio has 40% invested in stock A and the rest invested in stock B. If stock A has a beta of 1.3 and stock B has a beta of 0.9, what’s the beta of the portfolio? 27) Calculate the standard deviation of a portfolio that contains 40% of one stock with a standard deviation of 27% and 60% of another stock with a standard deviation of 13% and the correlation of their stock returns is 0.9. (Enter your...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 20%, while stock B has a standard deviation of return of 26%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .035, the correlation coefficient between the returns on A and B is _________.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is _________. Please show all work.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 18%, while stock B has a standard deviation of return of 24%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is 0.033, the correlation coefficient between the returns on A and B is _________. 0.584 0.140 0.351 0.234
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a sta...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .5. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. The variance of return on the portfolio is __________.
You are creating a portfolio of two stocks. The first one has a standard deviation of...
You are creating a portfolio of two stocks. The first one has a standard deviation of 21% and the second one has a standard deviation of 35%. The correlation coefficient between the returns of the two is 0.1. You will invest 40% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal places (e.g., 4.32%=4.32).
Consider a 2 asset portfolio with 60% in Google Inc. (GOOG) and 40% in John Deere (DE). Google has a standard deviation...
Consider a 2 asset portfolio with 60% in Google Inc. (GOOG) and 40% in John Deere (DE). Google has a standard deviation of 60%, John Deere has a standard deviation of 45% and their correlation is 0.2. What is the standard deviation of returns of the portfolio? You bought 200 shares of Microsoft at $50 per share, 100 shares of IBM for $100 a share and 300 shares of Amazon.com for $25 per share. What is the portfolio weight on...
You have a portfolio with a standard deviation of 24 % and an expected return of...
You have a portfolio with a standard deviation of 24 % and an expected return of 18 % 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 13 24 0.2 Stock B 13...
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock...
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock B. Stock A has expected return of 15 percent and standard deviation of 20 percent. Stock B has expected return of 7 percent and standard deviation of 10 percent. The correlation between the returns of these stocks is 0.5. Compute the expected return and standard deviation of your portfolio returns. (10 pts)
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock...
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock B. Stock A has expected return of 15 percent and standard deviation of 20 percent. Stock B has expected return of 7 percent and standard deviation of 10 percent. The correlation between the returns of these stocks is 0.5. Compute the expected return and standard deviation of your portfolio returns. (10 pts) b. Using a diagram to illustrate your points, explain the two key...
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock B. Stock A has expected return of 15 percent and standard deviation of 20 percent. Stock B has expected return of 7 percent and standard deviation of 10 percent. The correlation between the returns of these stocks is 0.5. Compute the expected return and standard deviation of your portfolio returns. (10 pts)
a. You have constructed a portfolio consisting of 40 percent Stock A and 60 percent Stock B. Stock A has expected return of 15 percent and standard deviation of 20 percent. Stock B has expected return of 7 percent and standard deviation of 10 percent. The correlation between the returns of these stocks is 0.5. Compute the expected return and standard deviation of your portfolio returns. (10 pts) b. Using a diagram to illustrate your points, explain the two key...
Most questions answered within 3 hours.
-
The definition of a partition
function involved a sum over all states, and knowledge of the...
asked 1 hour ago -
Which of the following events would be considered Systematic?
(Choose all that apply.)
A. The Federal...
asked 1 hour ago -
Questions of this part analyze the students’ understanding in
analyzing the given scenario and practical skills...
asked 1 hour ago -
#C++
Write a function, named sortByCourseNumber, that takes a
reference to a vector of string (like...
asked 1 hour ago -
A
cylunder of titanium (length = 5.00cm, diameter = 1.20 cm) has a
mass of 25.5...
asked 2 hours ago -
1) Answer Each question with 1-2 Sentences:
a) How can we use the continuity and change...
asked 3 hours ago -
5. What is the decimal equivalent of the largest binary
integer that can be obtained with...
asked 2 hours ago -
Why is the magnitude of the Type Ia supernova always the same
(-19.6)?
asked 3 hours ago -
5. You are a quality control engineer and you are
asked to analyze the lifetime (in hours)...
asked 3 hours ago -
How many ways can 2 people be chosen and arranged in a straight
line if there...
asked 4 hours ago -
(Problem 1d). Leandro has 16 hours per day that he can allocate
to work or leisure....
asked 5 hours ago -
Morganton Company
makes one product and it provided the following information to help
prepare the master...
asked 5 hours ago