Question

Given the following information: Expected return of Stock A .12 (12%) Standard Deviation of A's Return...

Given the following information:

Expected return of Stock A .12 (12%)
Standard Deviation of A's Return 1
Expected return on stock B .2 (20%)
Standard Deviation of B's return 6
Correlation Coefficient of the returns on stock A & stock B -.6 (this is not the covariance, it is the CC)

If as an investor I chose to invest 75% of my funds into stock A, and 25% into stock B, what is the measure of my coefficient of variation (CV) for my two fund portfolio?

a. 0.0864

b. 0.2320

c. 0.3627

d. 0.4864

e. 0.6022

**Please only answer if your certain your are correct!** thanks!

Homework Answers

Know the answer?
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
Similar Questions
You have a stock fund with an expected return of 12% and a standard deviation of...
You have a stock fund with an expected return of 12% and a standard deviation of 22%, a corporate bond fund with an expected return of 6% and a standard deviation of 18% and the risk free rate is 4%. The correlation between the stock and bond funds is 0.15. What is the expected return of the optimal portfolio? Answer in percentage, with one decimal place. Answer:
QUESTION 12 The investor is presented with the two following stocks: Expected Return Standard Deviation Stock...
QUESTION 12 The investor is presented with the two following stocks: Expected Return Standard Deviation Stock A 10% 30% Stock B 20% 60% Assume that the correlation coefficient between the stocks is -1. What is the standard deviation of the return on the portfolio that invests 30% in stock A? A. 26% B. 49% C. 30% D. 33%
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3...
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3 Expected return on Stock B .18 (18%) Standard deviation of return 0.4 Correlation coefficient of the returns on Stock A and Stock B 0.75 a. What are the expected returns and standard deviations of the following portfolios? 1. 100 percent of funds invested in Stock A 2. 100 percent of funds invested in Stock B 3. 50 percent of funds invested in each stock?
A stock fund has an expected return of 15% and a standard deviation of 25% and...
A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.25. The risk free rate is 5%. What is the (a) expected return and (b) standard deviation of the portfolio with 70% weight in the stock portfolio and 30% weight in the bond portfolio?
Q1) A stock fund has an expected return of 15% and a standard deviation of 25%...
Q1) A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.25. The risk free rate is 5%. What is the (a) expected return and (b) standard deviation of the portfolio with 70% weight in the stock portfolio and 30% weight in the bond portfolio? Q2) The variance of Stock A is...
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Suppose Stock X offers the return of 15% with a standard deviation of 12%; Stock Y...
Suppose Stock X offers the return of 15% with a standard deviation of 12%; Stock Y offers the return of 24% with a standard deviation of 26%. These two stocks have the correlation coefficient of 0.2. If you invest 60% in stock X and the rest in Stock Y, what is your portfolio return? What is your portfolio standard deviation
Suppose Stock X offers the return of 15% with a standard deviation of 12%; Stock Y...
Suppose Stock X offers the return of 15% with a standard deviation of 12%; Stock Y offers the return of 24% with a standard deviation of 26%. These two stocks have the correlation coefficient of 0.2. If you invest 60% in stock X and the rest in Stock Y, what is your portfolio return? What is your portfolio standard deviation?
Mary Guilott recently graduated from college and is evaluating an investment in two​ companies' common stock....
Mary Guilott recently graduated from college and is evaluating an investment in two​ companies' common stock. She has collected the following information about the common stock of Firm A and Firm​ B:  CHART BELOW .a.  If Mary decides to invest 10 percent of her money in Firm​ A's common stock and 90 percent in Firm​ B's common​ stock, what is the expected rate of return and the standard deviation of the portfolio​ return? b.  If Mary decides to invest 90...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT