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Coefficient of correlation between the returns

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Reference no: EM132742468

What is the value of a $1,000 face value bond with a 6% annual pay coupon of 6% and 10 years left to maturity if the relevant discount rate is 6% per year?

You own stock worth $20,000 in a company with standard deviation of returns of 22%. You also own stock worth $80,000 in a company with standard deviation of returns of 36%. These are the only stocks in your portfolio. If the coefficient of correlation between the returns of these companies is .80, what is your portfolio's standard deviation of returns?

Reference no: EM132742468

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