Determine the standard deviation for portfolio

Assignment Help Finance Basics
Reference no: EM132460226

A two stock portfolio has 30 percent in Stock A, with an expected return of 21 percent and a standard deviation of 5 percent, and the remainder in Stock B, with an 18 percent expected return and a standard deviation of 2 percent. The correlation coefficient is 0.6. Determine the standard deviation for this portfolio.

Reference no: EM132460226

Questions Cloud

Eaton electronic company : Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity
Specific mix of long-term debt and capital assets : What type of decision is a manager concerned with when looking at a specific mix of long-term debt and capital assets?
What are some possible explanations : What are some possible explanations for why value stocks might outperform growth stocks on a risk-adjusted basis?
Prepare the journal entry of alpha corporations bonds : Prepare the journal entry for the conversion of Alpha Corporation's bonds into common shares on August 1, 2020. the journal entry for the issuance of bonds
Determine the standard deviation for portfolio : The correlation coefficient is 0.6. Determine the standard deviation for this portfolio.
Prepare a schedule of cash collections for May through July : Problem - Schedule of Cash Collections. Prepare a schedule of cash collections for May through July. Compute the expected balance
What is the appropriate required rate of return : What is the appropriate required rate of return for your company per the capital asset pricing model?
Standard deviation of the new combined portfolio : The standard deviation of the new combined portfolio and compare it with that of the existing portfolio.
Required scholarship payments : How much must each deposit be in order to make the required scholarship payments? The account earns 5% interest compounded annually.

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!

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