Compute the standard deviation of this portfolio

Assignment Help Financial Management
Reference no: EM132065209

An equally weighted portfolio consists of 25 assets which all have a standard deviation of 0.219. The average covariance between the assets is 0.082. Compute the standard deviation of this portfolio. Please enter your answer as a percentage to three decimal places (i.e. 12.345% rather than 0.12345 -- the percent sign is optional).

Reference no: EM132065209

Questions Cloud

Method of computing cash flows from operating activities : Prepare the company’s Statement of Cash flows for 2013. Use the direct method of computing cash flows from operating activities.
Product strategy-meeting customer needs : what ways could you train tim (and rest of the sales staff) to improve his ability to position this product in order to meet every customer needs?
Alternative investment that has lowest possible volatility : The volatility of the alternative investment that has the lowest possible volatility while having the same expected return as Google is closest to:
What is value of right to exercise call option before expiry : Compare American call option with otherwise identical European call option on stock of XYZ.com. What is value of the right to exercise call option before expiry
Compute the standard deviation of this portfolio : The average covariance between the assets is 0.082. Compute the standard deviation of this portfolio.
Suppose that market portfolio is equally likely to increase : Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%.
The return on your portfolio over the year : Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, The return on your portfolio over the year is:
The market portfolio has expected return : Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%.
Company experienced sharp decrease in net income : Phoenix Photography Company experienced a sharp decrease in Net Income during the year 2016. As a personal friend of Perry’s, what advice would you give to him?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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