Assume standard deviation of security

Assignment Help Financial Management
Reference no: EM131613919

Assume the standard deviation of security A is 0.25 and the standard deviation of security B is 0.18. The correlation coefficient between A and B is -0.20. The portfolio consists of 60% A and 40% B. Calculate the covariance between security A and security B. (Round to 3 decimals)

Reference no: EM131613919

Questions Cloud

Discuss weather affects crime : Do you think that weather affects crime. Why or why not. Explain some of the ways that scholars think weather
Contrast the multiplexing techniques cdma and fdma : Compare and contrast the multiplexing techniques CDMA and FDMA in the area of wireless networking?
What is the contribution margin per unit : What is the contribution margin per unit? Round your answer to the nearest cent. Calculate the sales revenue needed to break even
Finra bonds quick search : If you were discussing the article with a colleague, what three important points would you want to explain? How can knowledge of what you learned help.
Assume standard deviation of security : Assume the standard deviation of security A is 0.25 and the standard deviation of security B is 0.18.
In which direction should he go directly across the river : A man wishes to row the shortest possible distance from north to south across a river that is flowing at 4 km/hr from the east. He can row at 5 km/hr.
The company with common equity accounts : The company with common equity accounts shown here has declared 5-for-one stock split when market value of its stock is $31 per share.
Examples impacting a specific industry : Discuss the various macro environment trends with examples impacting a specific industry
Video cameras should be permitted in criminal courtrooms : issue gag rules restricting the ability of trial participants to discuss a case outside of court? Do you think video cameras should be permitted in criminal

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value

What is the present value of $1,825 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now and the last payment is received 24 years from now?

  Unlevered beta-what is cost of equity

The XYZ Company has an unlevered beta of 1.25. What is XYZ's cost of equity?

  Beta and required rate of return

A stock has a required return of 10%; the risk-free rate is 4.5%; and the market risk premium is 3%. What is the stock's beta?

  Obtain financing for any projects under any circumstances

Dismal Outlook is unable to obtain financing for any new projects under any circumstances. This company is faced with: Turner Industries started a new project three months ago. Sales arising from this project are significantly less than anticipated. ..

  Example of a global strategy

A country barters the surplus coffee beans it grows for other agricultural products grown in a neighboring country. There is no exchange of currency between these countries. The type of business arrangement between the two countries can be regarded a..

  Bond outstanding-what is the yield to maturity of this bond

A Japanese company has a bond outstanding that sells for 92 percent of its ¥100,000 par value. The bond has a coupon rate of 5.9 percent paid annually and matures in 15 years. What is the yield to maturity of this bond?

  Accountant estimates that income taxes expense

Unadjusted trial balance dated December 31, 2015, reports Income Taxes Expense of $70,000, and Income Taxes Payable of $20,000. The company’s accountant estimates that income taxes expense for the entire year ended December 31, 2015, is $85,000.

  About the retirement account and saving account

Sam’s parents just retired and have $450,000 in a retirement account. They can earn 4% in this account. If they want to withdraw equal amounts of money every year for the next 30 years (starting at the end of this year), how much can take out every y..

  Compute indifference point between these two alternatives

Compute the indifference point between these two alternatives.- Preferred stock ($60 million) will cost 16 percent after tax. Which option should be selected on an EPS basis?

  What is the effective annual rate on arrangement

A firm sells its $1,190,000 receivables to a factor for $1,130,500. The average collection period is 1 month. What is the effective annual rate on this arrangement?

  Explain how adjusted book value approach to valuing assets

Define economic value and explain how an adjusted book value approach to valuing assets and liabilities moves book value nearer to economic value.

  What will happen to the value of the yen in the future

What factors do you think are important to monitor as you try to forecast what will happen to the value of the yen in the future?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd