Expected rate of return and standard deviation

Assignment Help Finance Basics
Reference no: EM132477772

You want to create portfolio which will include the stocks of CIBC and Suncor. You have gathered the following information about these two companies

                                                                                          Expected Return                Standard Deviation

Suncor                                                        19.04%                                     14.30%

CIBC                                                                5.41%                                        1.00%

 

Correlation                                                 0.3

You have decided to invest $70,000 in CIBC and $30,000 in Suncor. What is the expected rate of return and standard deviation of your portfolio?

Reference no: EM132477772

Questions Cloud

What is the long term effects of child abuse and neglect : What is the Long Term Effects of Child Abuse and Neglect? The voice that is hardly heard. Can child abuse and child neglect affect an individual
What is the present value of the amount : If the interest rate is 5% and you decide to invest in the island, what is the present value of the amount that you will pay?
Calculate a delta neutral position : You have 500 shares purchased at $ 87 per share A call with a delta of 0.7 and a strike of 87.50 sells for 0.90 (premium)
What is the expected rate of return and standard deviation : You have decided to invest $70,000 in TDA and $30,000 in Philips. What is the expected rate of return and standard deviation of your portfolio?
Expected rate of return and standard deviation : You have decided to invest $70,000 in CIBC and $30,000 in Suncor. What is the expected rate of return and standard deviation of your portfolio?
What is the intrinsic-fair value of the stock today : What is the intrinsic / fair value of the stock today? If the stock is currently trading at $64, is it correctly priced? Please show work
What was the investor u.s. dollar return : (1) What was the investor's U.S. dollar return, in percent, on this transaction?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the amount of the firm net fixed assets

The Caughlin Company has a long-term debt ratio of .25 and a current ratio of 1.50. Current liabilities are $900, sales are $6,230.

  Computation stock price and return by gordon growth model

Computation stock price and return by Gordon growth model and The dividend is expected to grow at a constant rate of 6 percent a year

  Calculate profit or loss should exercise before maturity

Calculate your profit or loss should you exercise before maturity at a time when the euro is traded spot at the following?

  What is the percentage change in price for zero coupon bond

What is the percentage change in price for a zero coupon bond if the yield changes from 6% to 7.5% The bond has a face value of $1,000 and it matures.

  Present value of the cash flows

Oppenheimer Bank is offering a? 30-year mortgage with an EAR of 5.375 %. If you plan to borrow $ 190,000? what will your monthly payment? be?

  Explain the financial ratios calculated

Describe the three ratio categories. Explain the financial ratios calculated. Work in the answers to the questions from your Module 4 discussion.

  Calculate the contribution margin ratio

Calculate the contribution margin ratio and thereafter use ratio to determine sales value to achieve annual operating profit of R1200000.

  How many dollars worth of sales are generated from every

How many dollars worth of sales are generated from every $1 in total assets?

  Arbitrage free future exchange rate

What is the arbitrage free future exchange rate between the euro and the U.S. dollar for two years in the future in euros per dollar?

  Calculation irr, npv, mirr, payback and discounted payback

Calculation IRR, NPV, MIRR, payback and discounted payback and if the projects are mutually exclusive, which would you recommend

  Describe and illustrate an integrated service provider

Compare and contrast anticipatory and response-based business models. Why has responsiveness become popular in supply chain collaborations?

  What will year 2 free cash flow for the project be

NWC requirements at the beginning of each yearis approximately 20% of the projected sales during the coming year. Thetax rate is 40% and the required returnon the project is 13%.

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