Calculate the percentage change

Assignment Help Financial Accounting
Reference no: EM132967794

Question - Consider two equally-weighted portfolios of stocks:

I. 20 stocks for similar industries, each with positive volatility σ and with pairwise correlation coefficients each equal to 0.9.

II. 20 stocks for dissimilar industries, each with positive volatility σ and with pairwise correlation coefficients each equal to 0.3.

Required - Calculate the percentage change, if any, in the volatility of the annual effective return when portfolio I is replaced by portfolio II.

Reference no: EM132967794

Questions Cloud

What is the mape for the forecasting : The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the one new tanning booth based on the following historic
How germany target market for ebikes : How Germany target market for Ebikes(Electronic bikes). briefly explain
Find what book value of shareholders equity for thompson : Net working capital is $121,000 and long-term debt is $82,500. What is the book value of shareholders' equity? Show calculations in detail.
Question on cloud computing : Cloud computing, as we've seen, is a blanket term that now encompasses many different products and services. Look at Amazon Web Services or Azure Development To
Calculate the percentage change : Calculate the percentage change, if any, in the volatility of the annual effective return when portfolio I is replaced by portfolio II
Present a hierarchical list of values : Present a hierarchical list of values, starting with those that human societies in general treat as most important and ending with the least important.
Calculate the net present value of the proposed project : Minaba trading company is considering investing in a capital project. Calculate the net present value of the proposed project
How much money will have at the end of eight years : How much more could she have earned over a 7-year period if the interest had compounded annually? Gouldy then goes on to invests $3,000 in an account.
Data sharing ecosystem in connected vehicles : What is the data sharing ecosystem in connected vehicles?

Reviews

Write a Review

Financial Accounting Questions & Answers

  The question is on accounting basics about closing process

the question is on accounting basics about closing process in accounting cycle.indicate which of the following accounts

  At the year-end-the book value of the mine

Early in the year, Amazon purchased River mine for $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are done. During that year, 115,000 tons of ore were removed. At ..

  Determine the breakeven point in dollar sales

Triad Company had fixed costs of $130,000 and variable costs of 80% of total sales revenue, Determine the breakeven point in dollar sales

  Determine the cash payments made to suppliers

Assuming that accounts payable relate only to the purchase of inventory, you are to determine the cash payments made to suppliers during the year.

  About the accounts receivable

Mary matches the sales order marked "shipped to her copy of the sales order. She then prepares a two-part invoice and mails the original to the customer. She records the sales in the sales journal and the receivables in the subsidiary ledger. Mary fi..

  What is the significance of the date of record

The following note related to stockholders' equity was reported in Wiebold, Inc.'s annual report. What is the significance of the date of record

  How much could withdraw at the end

How much could he withdraw at the end of each of the next 20 years? Your father has RM500,000 and wants to retire. He expects to live for another 20 years

  What the capitalized cost of the land was

What The capitalized cost of the land was? A plot of land was purchased for $120,000 and had $10,000 of past due property taxes on it.

  Statement of cash flows in pounds-sullivan island company

Prepare a statement of cash flows in pounds for Sullivan's Island Company's foreign subsidiary and then translate these amounts into U.S. dollars.

  Identify the intricacies of consolidation to the board

Make a Memorandum to the Board of Directors clearly explaining some of the technical aspects of consolidation. draw on the company's specific details

  Which preference shares gives the holder certain advantages

Find which of the entities is rank higher than the others according to Philippines' Top 10 Largest Companies by asset value in 2020?

  What were delberts gross earnings this week

Delberts total sales for this week were $6,700. What were Delberts gross earnings this week under the new arrangement of 10% of all sales

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