User Account

All Pages

Explain the coefficient of correlation

Assignment Help Business Economics
Reference no: EM133066337

A portfolio has 40% of its funds invested in Security A and 60% of its funds invested in Security B. Security A has a standard deviation of 4. Security B has a standard deviation of 10. The securities have a coefficient of correlation of .5. Which of the following values is closest to portfolio variance?

(A) 48.12

(B) 59.01

(C) 6.94

(D) 1639.21

Please show how p(1,2)σ1σ2 is calculated.

Reference no: EM133066337

Questions Cloud

What typically happens to the equilibrium price : What typically happens to the equilibrium price when the demand curve shifts to the left? Assume that all other things remain equal. Think about the process, an
Explain concept formation : 1. Explain concept formation. Drawing from the Sartori article, describe comment problems associated with conceptualization.
Confidentiality and importance of informed consent : Summary the limits to confidentiality and the importance of informed consent, when working with children.
Why the architecture of markets and the architecture : Discuss how and why the "architecture" of markets and the "architecture" of firms help decide how well markets and firms, respectively, deal with imperfect info
Explain the coefficient of correlation : A portfolio has 40% of its funds invested in Security A and 60% of its funds invested in Security B. Security A has a standard deviation of 4. Security B has a
Vertical product differentiation duopoly : Consider the following vertical product differentiation duopoly. Suppose that the quality of the product can be described by some number s; E [s; s] C R+.
What is the average performance score for this company : A business consultant is assessing the business performance of various departments. The scores were 77, 89, 95, 56 and 77. What is the average performance score
Equilibrium cwd between safe and risky jobs : Suppose workers can choose to work in two types of jobs: a risky job and a safe job. Because of technological reasons there are only 50 jobs in the economy that
Personalized medicine or individualized medicine : Personalized medicine, or individualized medicine, is a growing trend in the delivery of health care that is specific to the individual patient.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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