Question

What is the standard deviation of returns of a portfolio that produced returns of 15%, 20%,...

  1. What is the standard deviation of returns of a portfolio that produced returns of 15%, 20%, 30%, and 35%?

    A.

    31.1%

    B.

    62.5%

    C.

    14.7%

    D.

    7.9%

Homework Answers

Answer #1

Hence, the Correct answer is "D" i.e 7.9%

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
The standard deviation of Asset A returns is 36%, while the standard deviation of Asset M...
The standard deviation of Asset A returns is 36%, while the standard deviation of Asset M returns is 24%. The correlation between Asset A and Asset M returns is 0.4. (a) The average of Asset A and Asset M’s standard deviations is (36+24)/2 = 30%. Consider a portfolio, P, with 50% of funds in Asset A and 50% of funds in Asset M. Will the standard deviation of portfolio P’s returns be greater than, equal to, or less than 30%?...
Which of the following will be true about the return and standard deviation of a portfolio?...
Which of the following will be true about the return and standard deviation of a portfolio? A. The return of a portfolio will be the weighted average of the returns in the portfolio, but the standard deviation will be less than the weighted average of the standard deviations in the portfolio. B. The return and standard deviation of a portfolio will be the weighted average of the returns and standard deviations in the portfolio. C. The return and standard deviation...
Portfolio Manager A in the past year had a return of 15% and the standard deviation...
Portfolio Manager A in the past year had a return of 15% and the standard deviation of the portfolio return was 25%. Portfolio Manager B in the past year had a return of 20% and the standard deviation of the portfolio return was 30%. The rate on treasury bills was 5%. Who is the better manager? Why? SHOW WORK
As we increase the number of stocks in a portfolio, the standard deviation of returns of...
As we increase the number of stocks in a portfolio, the standard deviation of returns of the portfolio ________ if the stocks that comprise the portfolio are ________. A.) increases; not perfectly positively correlated B.) increases; perfectly correlated C.) decreases; not perfectly positively correlated D.) decreases; perfectly correlated
Derive the standard deviation of the returns on a portfolio that is invested in stocks x,...
Derive the standard deviation of the returns on a portfolio that is invested in stocks x, y, and z , where twenty percent of the portfolio is invested in stock x and 35 percent is invested in Stock z. State of Economy Probability of State of Economy Rate of Return if State Occurs Stock x Stock y Stock z Boom .04 .17 .09 .09 Normal .81 .08 .06 .08 Recession .15 − .24 .02 − .13
The standard deviation of return on investment A is .20 while the standard deviation of return...
The standard deviation of return on investment A is .20 while the standard deviation of return on investment B is .05. If the covariance of returns on A and B is .0030, the correlation coefficient between the returns on A and B is __________. A. .12 B. .28 C. .30 D. .75
Stock A has an expected return of 12%, a standard deviation of 24% on its returns,...
Stock A has an expected return of 12%, a standard deviation of 24% on its returns, and a beta of 1.2. Stock B has an expected return of 15%, a standard deviation of 30% on its returns, and a beta of 1.5. The correlation between the two stocks is 0.8. If we invested $30,000 in Stock A and $20,000 in Stock B, what is the beta of our portfolio? Select one: a. 1.03 b. 1.25 c. 1.32 d. 1.40 e....
Assume returns on a porfolio are normally distributed. Suppose a portfolio have average return of 15%...
Assume returns on a porfolio are normally distributed. Suppose a portfolio have average return of 15% with a standard deviation of 40%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. a) what percent of years does this portfolio lose money have a return less than 0%? b) what is the cutoff of the highest 5% of annual...
he W Equity portfolio has a standard deviation of returns of 8. The R Bond portfolio...
he W Equity portfolio has a standard deviation of returns of 8. The R Bond portfolio has a standard deviation of returns of 6. If the Covariance of these portfolio is 5 what is this portfolio's coefficient of correlation?
What is the standard deviation of the returns on a portfolio that is invested 37 percent...
What is the standard deviation of the returns on a portfolio that is invested 37 percent in Stock Q and 63 percent in Stock R? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock Q Stock R Boom .15 .16 .15 Normal .85 .09 .13 Multiple Choice 1.37 percent 2.47 percent 1.63 percent 1.28 percent 2.09 percent
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT