Reference no: EM13957028
The following chart shows their possible payoffs.
Probability Return on Return on Return on
States of Outcome Security 1 (%) Security 2 (%) Security 3 (%)
1 0.1 0.25 0.25 0.10
2 0.4 0.20 0.15 0.15
3 0.4 0.15 0.20 0.20
4 0.1 0.10 0.10 0.25
a. what is the expected return and standard deviation of each security?
b. what are the covariances and correlations between the pairs of securities?
c. what is the expected return and standard deviation of a portfolio with half of its funds invested in security 1 and half in security
d. what is the expected return and standard deviation of a portfolio with half of its funds invested in security 1 and half in security
e. what is the expected return and standard deviation of a portfolio with half of its funds invested in security 2 and half in security
f. what do your answers in parts a, c, d, and e imply about diversification?
|
What does it cost to have people analyze the data
: What does it cost to have people analyze the data and produce reports? Other than an analyst, who within a healthcare organization needs to analyze the data and for what purpose?
|
|
Purchased common stock in morceau company
: Purchased common stock in Morceau Company, as a long-term investment, for $60,000.
|
|
Medical administrative assistant for your practice
: You are the Medical Administrative Assistant for your practice. The phone rings and you answer it. It is Mr. Wilson, a patient of the practice. He is very upset because he received an EOB (explanation of benefits) in the mail today indicating the ..
|
|
What is the probability that both service clerks are idle
: Sharpe Discounts Wholesale Club has two service desks, one at each entrance of the store. Customers arrive at each service desk at an average of one every 6 minutes. The service rate at each service desk is 4 minutes per customer.
|
|
Find expected return and standard deviation of each security
: what do your answers in parts a, c, d, and e imply about diversification?
|
|
Discusses the importance of reputation management
: Write a paper that discusses the importance of reputation management in relation to an organization's credibility. If a PR person only has their credibility to offer and is only good as his or her deserved reputation.
|
|
Problem regarding the postal restrictions
: Postal Restrictions If a box with square cross section is to be sent by the postal service, there are restrictions on its size such that its Volume is given by V= x²(108-4x), where x is the length of each side of the cross section (in inches).
|
|
Company of pasteurizing and packaging a pint
: What is the incremental benefit (cost) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point?
|
|
Consider three poor or ineffective communication
: Consider three poor or ineffective communication habits or behaviors commonly observed everyday whether at home, school, work, or other social situations.
|