Find average variance of return for an individual security

Assignment Help Finance Basics
Reference no: EM131682930

Question: Assume that the average variance of return for an individual security is 50 and that the average covariance is 10. What is the expected variance of a portfolio of 5, 10, 20, 50 and 100 securities. How many securities need to be held before the risk of a portfolio is only 10% more than the minimum?

Reference no: EM131682930

Questions Cloud

How many expected returns and variances need to compute : You have been asked to estimate a Markowitz portfolio across a universe of 1250 assets. How many expected returns and variances would you need to compute?
Shareholders in any distribution of surplus assets : Its share capital consists of 500,000 fully paid ordinary shares issued at a price of $1.00 per share and 250,000 fully paid (non-redeemable) preference shares.
Discuss world cultural geography : Why are some countries rich and others poor. Discuss World Cultural Geography
Why are interest groups so influential in texas politics : Why are interest groups so influential in Texas politics? What sorts of institutional reforms could legislation enact to reduce the influence of interest group.
Find average variance of return for an individual security : Assume that the average variance of return for an individual security is 50 and that the average covariance is 10. What is the expected variance of a portfolio.
Independent outplacement service : Placewrite, Inc., independent outplacement service, helps unemployed executives find job. Develop cause-and-effect diagram that might clarify source of errors.
Has roberta breached any of her directors : (a) Has Roberta breached any of her directors' duties owed to EY? Which (if any) has she breached and why has she breached them?
How connected are the consumers of products : What responsibility do corporations like H&M, Gap, and Apple have to workers in developing countries
Provide an explanation that reconciles this research finding : Goal setting research suggests that people should be given difficult goals. Provide an explanation that reconciles this research finding with expectancy theory.

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