Find the expected return and variance

Assignment Help Operation Management
Reference no: EM131152336

Find the expected return and variance of a two-asset portfolio, 65% bonds and 35% stocks. The expected return is 6% for bonds and 10% for stocks. The variances are 12% for bonds and 25% for stock. Assume that the correlation coefficient between bonds and stock = 0.

Reference no: EM131152336

Questions Cloud

Explain what is meant by ethical behavior : Develop and propose a plan for improving the effectiveness of communication in your organization. Incorporate the elements needed to establish a clear purpose. Explain what is meant by ethical behavior, and why organizations should be concerned abo..
Calculate the appropriate selling : Calculate the appropriate selling price of a 30-year 5% annual coupon paid semiannually, $1,000 corporate bond that was purchased five years ago. Marketplace interest rates are averaging 8%.
Equivalent in terms of return : What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.
Recent coupon payment occurred : The trade settled two days ago and the most recent coupon payment occurred 32 days ago. What was the invoice price that you were required to pay?
Find the expected return and variance : Find the expected return and variance of a two-asset portfolio, 65% bonds and 35% stocks. The expected return is 6% for bonds and 10% for stocks. The variances are 12% for bonds and 25% for stock. Assume that the correlation coefficient between bo..
How many coulombs of charge are deposited on the plane : A lightning bolt strikes an airplane with 30 kA for 2 ms. How many coulombs of charge are deposited on the Plane?
Determine the allowable rotation of the tabs : The twisting member has a diameter of 0.3 in. and the tabs are 1 in. away from each of the fixed ends. (Take G = 150 ksi.)
Discuss three supervisory techniques : Discuss THREE supervisory techniques that they used, using specific examples from the movie or TV episode. Do not spend too much effort explaining the background or details of the scenario, just get to the point
Analysis of the ethical concerns raised by the situation : An explanation of at least three of the relevant areas of law that have been addressed in this course (e.g., constitutional law, contracts, anti-trust law, securities regulations, employment law, environmental law, crimes, or torts) and an assessm..

Reviews

Write a Review

Operation Management Questions & Answers

  What role does the federal open market committee

The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. What are the requirements for something to be considered money? Why does the dollar have value? What does the money sup..

  Leadership helps you create a sense of meaning

Identify how your personal model of leadership helps you create a sense of meaning and purpose for yourself, others, organizations, and society.

  Draw a path diagram for the project

The Galaxy project consists of 8 interdependent tasks, labeled A through H. You've consulted experts, and have determined an optimistic, likely and pessimistic completion time (in days) for each of the tasks. Draw a path diagram for the project

  Human interactions corporation produces two products

Human Interactions Corporation produces two products using two assembly lines. Line A has 140 hours available this month while Line B has 80 hours available. On Line A, Product 1 requires 10 hours of production time and Product 2 requires 8 hours of ..

  If businesses claim to have no extra-legal obligations

If businesses claim to have no extra-legal obligations, how can they claim the right to influence law and regulation?

  Describe the methods companies use to train their employees

What is the sequence of steps that should occur before you are hired for a full-time position? Describe the types of methods companies use to train their employees.

  Consider link between leadership-management-human resources

Consider the link between leadership, management, and human resources in any organization. Then, comment on how management and leadership facilitate strategic management through the Human Resource function and discuss any legal issues that could evol..

  Projects by applying the IRR rule

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 27,000 1 11,000 2 14,000 3 10,000. If the required return is 16 percent, what is the IRR for this project?

  Identify that will affect your negotiation options

How would you assess whether or not you should negotiate? Identify the factors you would consider and the overall rule you would apply and what factors can you readily identify that will affect your negotiation options and outcomes?

  Performance as a morally responsible group member

Evaluate your own performance as a morally responsible group member. Which h behaviors do you demonstrate? Which do you need to develop? What specific steps might you take to improve?

  Describe lewins model of change

Describe Lewin’s model of change. Can you use this model to relate to a change you have had to make in your own life?

  Discuss why security isn ot just a technology issue

Discuss why Security isn't just a technology issue? Why does the business unit need to be involved?

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