Expected return and standard deviation for portfolio

Assignment Help Financial Management
Reference no: EM132061173

Consider the following information

State       Probability   X       Z

Boom       .25       15%       10%

Normal      .60       10%       9%

Recession   .15       5%       10%

What is the expected return and standard deviation for a portfolio with an investment of $6000 in asset X and $4000 in asset Y?  

Reference no: EM132061173

Questions Cloud

What is the npv for this investment : The first cost of capital is 10 percent and the projects IRR is 19.9483%. What is the npv for this investment?
What is correct firm value : Alex's manager says the actual WACC of firm should be 12% and want Alex to re-calculate correct firm value. What is the correct firm value?
Determine the present value of the cash flows : determine the present value of the following cash flows,
Determine the cost of capital for your firm : Determine the cost of capital for your firm.
Expected return and standard deviation for portfolio : What is the expected return and standard deviation for a portfolio with an investment of $6000 in asset X and $4000 in asset Y?
What is standard deviation and variance : What is the expected return? What is the variance? What is the standard deviation?
True regarding observed capital structures : Which of the following is (are) true regarding observed capital structures?
What is lower bound for the value of the futures option : What is a lower bound for the value of the futures option if it is (a) European and (b) American?
What was the annual increase in selling price : In January 2007, the average price of an asset was $27,658. 9 years earlier, What was the annual increase in selling price?

Reviews

Write a Review

Financial Management Questions & Answers

  Company exposure to foreign currency exchange risk

Use of foreign currency forward contract or foreign currency options is best to hedge company’s exposure to foreign currency exchange risk.

  Some key authors on management theory

You have been introduced to some key authors on management theory including Henri Fayol whose work looked at the duties and roles that managers do and Henry Mintzberg who considered the roles of managers as having more variety and pace.

  What is the company weighted average cost of capital

YZ has target capital structure of 60% common stock, 30% debt and 10% preferred stock. The company wishes to issue new 30 years bond with 10% coupon rate. The flotation cost will be $20 and the bond has to be sold at 5% discount. What is the company’..

  What is the tradeoff involved in constructing a bull spread

Given your answers to parts (a) and (b), what is the tradeoff involved in constructing a bull spread using call options with a higher exercise price?

  Considered for new hospital surgery equipment

Two depreciation methods are being considered for new hospital surgery equipment. What is the total tax credits through Year 4?

  Calculate the monthly cash change

Calculate when and in what amounts the $25,000 December revenues receivable balance will be collected, and enter this information in the form.

  Which company will keep constant growth rate forever

Storico Co. just paid a dividend of $1.90 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divid..

  Equilibrium price of risk in terms of expected return

The slope of the capital market line is the equilibrium price of risk in terms of expected return.

  What is mexican currency v. us dollar exchange rate trend

What is Mexican currency v. U.S. dollar exchange rate trend, post-Trump?

  What is the weighted average contribution margin

A small drink sells for $1.10 with a variable cost of $0.30. What is the weighted average contribution margin?

  Collection of historical and current activities

Financial statements are a collection of historical and current activities of the company.

  Use the binomial option pricing model

What is the option worth today if the one year risk free rate is 5%. Use the binomial option pricing model to find this value.

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