Question

15. An investor can design a risky portfolio based on two stocks, A and B. The...

15. An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 16.52%, while the standard deviation on stock B is 7.11%. The correlation coefficient between the returns on A and B is -0.2523. The expected return on stock A is 22.75%, while on stock B it is 10.54%. The proportion of the minimum-variance portfolio that would be invested in stock B is approximately ________.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 25% and a standard deviation of return of 35%. Stock B has an expected return of 18% and a standard deviation of return of 28%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 6%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 26% and a standard deviation of return of 39%. Stock B has an expected return of 15% and a standard deviation of return of 25%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 6%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 37%. Stock B has an expected return of 16% and a standard deviation of return of 22%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 6%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 16% and a standard deviation of return of 30%. Stock B has an expected return of 11% and a standard deviation of return of 15%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 5%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 12% and a standard deviation of return of 28%. Stock B has an expected return of 9% and a standard deviation of return of 13%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 5%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 34%. Stock B has an expected return of 13% and a standard deviation of return of 19%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 9%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 17% and a standard deviation of return of 29%. Stock B has an expected return of 12% and a standard deviation of return of 14%. The correlation coefficient between the returns of A and B is .4. The risk-free rate of return is 6%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard deviation of return of 26%. Stock B has an expected return of 9% and a standard deviation of return of 11%. The correlation coefficient between the returns of A and B is .5. The risk-free rate of return is 5%. The proportion of the optimal risky portfolio that should be invested in stock B is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 22% and a standard deviation of return of 17%. Stock B has an expected return of 13% and a standard deviation of return of 4%. The correlation coefficient between the returns of A and B is .33. The risk-free rate of return is 9%. The proportion of the optimal risky portfolio that should be invested in stock A is...
An investor can design a risky portfolio based on two stocks, A and B. Stock A...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 22% and a standard deviation of return of 20%. Stock B has an expected return of 12% and a standard deviation of return of 4%. The correlation coefficient between the returns of A and B is .35. The risk-free rate of return is 9%. The proportion of the optimal risky portfolio that should be invested in stock A is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT