Annual return mean and standard deviation

Assignment Help Financial Management

Reference no: EM131087780

Tyler Trucks stock has an annual return mean and standard deviation of 11 percent and 46 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 10.6 percent and 52 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is .5. What is the smallest expected loss for your portfolio in the coming month with a probability of 16 percent? (Negative amounts should be indicated by a minus sign. Omit the "%" sign in your response. Round your answer to 2 decimal places.)

Reference no: EM131087780

Questions Cloud

Decisions made concerning operations : How are decisions made concerning operations, investing in specific projects while excluding others, make or buy manufacturing decisions, vendor/supplier selection, and pricing of products sold? moving from buying products from suppliers to manufactu..

Any other stockholders own controlling interest : Suppose your company is very successful and you cash out most of your stock and turn the company over to an elected board of directors. Neither you nor any other stockholders own a controlling interest (this is the situation at most public companies)..

Smallest expected loss in the coming year with probability : DW Co. stock has an annual return mean and standard deviation of 14 percent and 35 percent, respectively. What is the smallest expected loss in the coming year with a probability of 16 percent?

How much money needs to be in the account by the time : Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $62,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 5.7% per year simple interes..

Annual return mean and standard deviation : Tyler Trucks stock has an annual return mean and standard deviation of 11 percent and 46 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 10.6 percent and 52 percent, respectively.

Describe total risk-diversifiable and non-diverifiable risk : Describe total risk, diversifiable risk, and non-diverifiable risk. Which risk is most significant to the financial manager, why? Explain the security market line, SML. What is measured on the X and Y axis? What is the beta coefficient and its signif..

Characteristic of smart goal : Jermaine and Monica are in a really great band. They would really like to play more shows and get more people to listen to their music. The problem is that they live in a small town that is far from any big city. State the SMART goal that you have cr..

Originally intended toward the card : You owe $2,348.62 on a credit card with an 8.75% APR. You pay $300.00 toward the card at the beginning of the month. What is the difference in interest accrued compared with if you had paid an additional $300.00 more than you had originally intended ..

Weighted average cost of capital for firm : The current stock price for a company is $49 per share, and there are 3 million shares outstanding. The beta for this firms stock is 1.4, the risk-free rate is 4.1, and the expected market risk premium is 6.2%. what is the Weighted Average Cost of Ca..

User Account

All Pages