User Account

All Pages

Correlation coefficient between the two stocks

Assignment Help Finance Basics
Reference no: EM132753095

A portfolio with one risk-free asset and one risky asset One portfolio consisting of one risk-free asset and one risky asset where you wish to have a standard deviation of the portfolio of 25 %.The standard deviation of the risky asset is 30 %.

How much should be invested in the risk-free asset and how much should be invested in the risky asset?

One portfolio consisting of two stocks, A and B, with the goal of having as low risk as possible (risk is measured as the standard deviation of the portfolio). The standard deviation of A is 25 % while it is30 % for B. The correlation coefficient between the two stocks is 0.6

How much should be invested in A and how much should be invested in B?

Reference no: EM132753095

Questions Cloud

Evaluate the burden of debt : Evaluate the 'Burden of Debt' and examine the validity of learners claims regarding the impact of internal and external debts considering cases in Fiji.
How much should be pretax financial income subject to income : Goodwill impairment of P87,500 which will never be deductible for income tax purposes. How much should be the pretax financial income subject to income tax?
Calculate the amount of depreciation expense recorded : Company purchased equipment costing $214,000 on January 1, 2022. The equipment was assigned an estimated useful life of 15 years and an estimated residual value
Explaining to your staff significant of stocking : Create a executive summary explaining to your staff the significant of stocking, placing timely orders, and provide a step by step method
Correlation coefficient between the two stocks : How much should be invested in A and how much should be invested in B?
Compute how many units in ending work in process inventory : Material is added at the start of production. If Carter transferred out 11,750 units, how many units were in ending Work in Process Inventory?
What is the net present value of the best-case scenario : Anna is reviewing a new 5-year project with expected sales of 3,400 units, give or take 8%. The expected variable cost per unit is $22 and the expected fixed.
Organizations generate no revenue : Human resources (HR) departments in virtually all organizations generate no revenue but have many important duties and responsibilities.
How to prepare a bank reconciliation for july : How to prepare a bank reconciliation for July 31 and Journalize the adjusting entries for July 31 on the books of Cullumber Company.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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