Question

Consider two stocks, Stock D, with an expected return of 13
percent and a standard deviation of 25 percent, and Stock I, an
international company, with an expected return of 6 percent and a
standard deviation of 16 percent. The correlation between the two
stocks is −.14. What are the expected return and standard deviation
of the minimum variance portfolio? **(Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)**

Answer #1

Consider two stocks, Stock D, with an expected return of 11
percent and a standard deviation of 26 percent, and Stock I, an
international company, with an expected return of 9 percent and a
standard deviation of 19 percent. The correlation between the two
stocks is –0.12. What are the expected return and standard
deviation of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.).

Consider two stocks, Stock D with an expected return of 11
percent and a standard deviation of 26 percent and Stock I, an
international company, with an expected return of 9 percent and a
standard deviation of 19 percent. The correlation between the two
stocks is -.12. What is the weight of each stock in the minimum
variance portfolio? (Round your answer to 4 decimal places.) Weight
of Stock D Weight of Stock I

Assume Stocks A and B have the following characteristics: Stock
Expected Return Standard Deviation A 8.3% 32.3% B 14.3% 61.3% The
covariance between the returns on the two stocks is .0027. a.
Suppose an investor holds a portfolio consisting of only Stock A
and Stock B. Find the portfolio weights, XA and XB, such that the
variance of her portfolio is minimized. (Hint: Remember that the
sum of the two weights must equal 1.) (Do not round intermediate
calculations and...

Consider a portfolio that contains two stocks. Stock "A" has an
expected return of 15% and a standard deviation of 18%. Stock "B"
has an expected return of -1% and a standard deviation of 25%. The
proportion of your wealth invested in stock "A" is 50%. The
correlation between the two stocks is -0.1.
What is the expected return of the portfolio? Enter your answer
as a percentage. Do not include the percentage sign in your
answer.
Enter your response...

Asset K has an expected return of 19 percent and a standard
deviation of 34 percent. Asset L has an expected return of 7
percent and a standard deviation of 18 percent. The correlation
between the assets is 0.43. What are the expected return and
standard deviation of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answers as a percent rounded
to 2 decimal places.)
Expected return%
Standard deviation%

The stock of Bruin, Inc., has an expected return of 22 percent
and a standard deviation of 37 percent. The stock of Wildcat Co.
has an expected return of 12 percent and a standard deviation of 52
percent. The correlation between the two stocks is .49. Calculate
the expected return and standard deviation of the minimum variance
portfolio.

You have a three-stock portfolio. Stock A has an expected return
of 11 percent and a standard deviation of 41 percent, Stock B has
an expected return of 15 percent and a standard deviation of 59
percent, and Stock C has an expected return of 13 percent and a
standard deviation of 41 percent. The correlation between Stocks A
and B is .30, between Stocks A and C is .20, and between Stocks B
and C is .05. Your portfolio...

Stock 1 has a expected return of 14% and a standard deviation
of 12%.
Stock 2 has a expected return of 11% and a standard deviation
of 11%.
Correlation between the two stocks is 0.5.
Create a minimum variance portfolio with long positions in both
stocks.
What is the return on this portfolio?

The following information is available for two stocks: Stock
Shares Price per share Expected Return Standard Deviation A 500 $40
14% 18% B 400 $25 21% 22% You are fully invested in the two stocks.
The correlation coefficient between the two stock returns is
.80
a. Compute the weights of the two stocks in your portfolio.
b. Compute the portfolio expected return.
c. Compute the portfolio standard deviation.
d. You consider selling 250 shares of stock A, and buy with...

There are two stocks in the market, Stock A and Stock B . The
price of Stock A today is $85. The price of Stock A next year will
be $74 if the economy is in a recession, $97 if the economy is
normal, and $107 if the economy is expanding. The probabilities of
recession, normal times, and expansion are .30, .50, and .20,
respectively. Stock A pays no dividends and has a correlation of
.80 with the market portfolio....

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