Question

Settings Assume the standard deviation of security A is 0.24 and the standard deviation of security...

Settings Assume the standard deviation of security A is 0.24 and the standard deviation of security B is 0.35. The correlation coefficient between A and B is 0.41. What is the standard deviation of a portfolio composed of 56 % security A and 44 % security​ B? The standard deviation of the portfolio is nothing​%. ​(Round to two decimal​ places.)

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
If you have one security with an expected return of 7% and a standard deviation of...
If you have one security with an expected return of 7% and a standard deviation of 2% and a second security with an expected return of 13% and a standard deviation of 2.4%, what would be the standard deviation of a portfolio that consists of 30% of the first security and 70% of this second security if the correlation coefficient between the two securities is -.30?
security proportion portfolio expected return   standard deviation A 50% 15% 18% B 50% 24% 24% correlation...
security proportion portfolio expected return   standard deviation A 50% 15% 18% B 50% 24% 24% correlation coefficient 0.35 Calculate a) i. Expected return of each portfolio ii. Standard deviation of each portfolio b. advice management on which portfolio to invest in
Question 19 Assume the standard deviation of stock A is 20% and the standard deviation of...
Question 19 Assume the standard deviation of stock A is 20% and the standard deviation of stock B is 50%. You have bought $10,000 worth of stock A and $30,000 worth of stock B. If the correlation coefficient between the two stocks is -0.30 (negative!), what is the standard deviation of this two-stock portfolio? a) 34.8% b) 35.8% c) 36.3% d) 37.1% e) 37.5%
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .080,...
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .080, E(RB) = .140, σA = .350, and σB = .610. a-1. Calculate the expected return of a portfolio that is composed of 25 percent A and 75 percent B when the correlation between the returns on A and B is .40. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 12.5 % a-2....
Suppose the expected returns and standard deviations of stocks A and B are E( RA )...
Suppose the expected returns and standard deviations of stocks A and B are E( RA ) = 0.15, E( RB ) = 0.21, σ A = 0.48, and σ B = 0.72, respectively. Required: (a) Calculate the expected return and standard deviation of a portfolio that is composed of 42 percent A and 58 percent B when the correlation between the returns on A and B is 0.46. (Round your answers to 2 decimal places. (e.g., 32.16))   Expected return %...
Suppose the characteristics of security A and B are given as follow: Expected return Standard deviation...
Suppose the characteristics of security A and B are given as follow: Expected return Standard deviation Stock A 12% 8% Stock B 18% 15% Correlation coefficient between return of stock A and B is 0.5. What is the expected value and standard deviation of return of minimum variance portfolio constructed from stock A and B?
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 23% while stock B has a standard deviation of return of 21%. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. If the variance of return on the portfolio is .0380, the correlation coefficient between the returns on A and B is __________. 0.589 0.604 0.599 0.579
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 0.035, the correlation coefficient between the returns on A and B is _________. A .157 B.392 C.235 D.102
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 24%, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is 0.041, the correlation coefficient between the returns on A and B is _________. Multiple Choice 0.727 0.436 0.291 0.131
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .100,...
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .100, E(RB) = .160, σA = .370, and σB = .630.    a-1. Calculate the expected return of a portfolio that is composed of 45 percent Stock A and 55 percent Stock B when the correlation between the returns on A and B is .60. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT