Calculate the standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM13280027

If the standard deviation of returns of the market is 0.1 and the beta of a well-diversified portfolio is 1.5, calculate the standard deviation of the portfolio.

Reference no: EM13280027

Questions Cloud

Why does the longer-term bond price vary more : What will the value of each bond be if the going interest rate is 5%, 8%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity ant that 15 more payments are to be made on Bond L.
What is the rate of flow through the tube : Mercury flows through a horizontal pipe 0.80 cm in diameter and 0.5 m long. what is the rate of flow through the tube
Estimate the overall resistance of a heating element : As current passes through the wires, the wires heat up, thus toasting the toast. Estimate the overall resistance of a heating element which is 220 cm long and consists of nichrome wire with a diameter of 0.56 mm.
Discuss the financial manager place in the corporation : Explain the main goal a financial manager is trying to achieve and the types of decision financial manager makes.
Calculate the standard deviation of the portfolio : If the standard deviation of returns of the market is 0.1 and the beta of a well-diversified portfolio is 1.5, calculate the standard deviation of the portfolio.
How high up is bob : Bob has just finished climbing a sheer cliff above a beach, and wants to figure out how high he climbed. How high up is Bob, if the ball started from exactly 2 m above the edge of the cliff
Explain the vapor pressure of the solution : A solution is made by mixing 49.0 mL of ethanol, C2H6O, and 51.0 mL of water. Assuming ideal behavior, what is the vapor pressure of the solution at 20 degrees celcius
Calculate the expected return for microsoft : If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft.
Determine the amount of time that devices would have : Determine the amount of time that the following devices would have to be used before 1.0x106 C (1 million Coulombs) of charge passes through them. a. LED night light (I=0.0042 A) b. Incandescent night light (I=0.068 A)

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify three external environment factors

Choose a product/service (e.g McDonald fastfood, HP computer...) and identify three external environment factors that might have the most important impact on the development of this product/service in three - five years. Explain your answer.

  How does each feature affect bond required rate of return

You are considering purchasing 5-year corporate bonds as an investment. You have a choice of terms available. Which of the following terms would you find desirable, ceteris paribus? How does each feature affect the bond's required rate of return?

  What is the weighted average portfolio return

Suppose you add a new stock to your portfolio. NewCo now accounts for 50% of your total portfolio. The expected dollar return on NewCO stck is 19% and its standard deviation is 30.

  Finance area of a company

You are an individual within the finance area of your company, and you are preparing final budgets to present to your board of directors for the coming year.

  Calculate expected return and volatility

Assume Johnson & Johnson and the Walgreen Co. have expected returns and volatilities shown below, with a correlation of 22 percent.

  What inflation rate is expected after year 1

If the yield on 3-year Treasury bonds equals the 1-year yield plus 2.75%, what inflation rate is expected after Year 1? Round your answer to two decimal places.

  How may you optimize the impact and accuracy

what might have holes in it and what would the final numbers, when they are presented, really mean? How may you optimize the impact and accuracy of such a presentation?

  Computation of number of stocks and stock price

Computation of number of stocks and stock price and Assume there is no capital gains tax

  What is the value of the missing cash flow

The present value of the following cash flow stream is $7,300 when discounted at 8 % annually. What is the value of the missing cash flow? Year 1 cash flow $1500 Year 2 cash flow ? Year 3 cash flow $2700 Year 4 Cash flow $2900

  Identify key areas of accounts receivable management

Analyse whether the proposed changes in credit policy should be accepted. Identify and discuss die key areas of accounts receivable management.

  What you need to know about future value

Mary and Joe would like to save up $10,000 by the end of 3 years from now to buy new furniture for their home. They currently have $1,500.

  Determine the duration

A corporation is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price will be $40 each share. The stock currently sells for $50 each share and there are 250,000 shares were outstanding.

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