Harry jones has invested onethird of his funds in share 1

Reference no: EM13617027

Harry Jones has invested one?third of his funds in Share 1 & two?thirds of his funds in Share 2. His assessment of each investment is as follows:

  Item                                      Share 1             Share 2
Expected return (%)                    15.0                  21.0
Standard deviation (%)                18.0                  25.0
Correlation between the returns      .5

(a) What are the expected return & the standard deviation of return on Harry's portfolio?

(b) Recalculate the expected return & the standard deviation where the correlation between the returns is 0 and 1.0, respectively.

Reference no: EM13617027

Questions Cloud

Construct a 90 confidence interval to estimate the average : a random sample of 21 ncaa division i mens basketball games during the 2009-2010 season had an average attendance of

You are planning to make monthly deposits of 450 into a : you are planning to make monthly deposits of 450 into a retirement account that pays 8 percent interest compounded

Does this provide compelling evidence for concluding that : a manufacturer of nickel-hydrogen batteries randomly selects 100 nickel plates for test cells cycles them a specified

An 110 m 230 n uniform ladder rests against a smooth wall : an 11.0 m 230 n uniform ladder rests against a smooth wall. the coefficient of static friction between the ladder and

Harry jones has invested onethird of his funds in share 1 : harry jones has invested one?third of his funds in share 1 amp two?thirds ofnbspnbsphis funds in share 2. his

Can not answer because the test statistics also depends on : suppose we are testing the hypotheses h0 ? 100 and ha?lt 100. suppose the population variance is unknown. which sample

What is the distance of a sample of blood from the rotation : human blood contains plasma platelets and blood cells. to seperate the plasma from other components centrifugation is

How many elephants does the researcher need to weigh so : in a study of elephants a researcher wishes to determine the average weight of a certain subspecies of elephants. from

A motorcycle rider starts from rest and goes 375 rad : a motorcycle rider starts from rest and goes 3.75 rad counterclockwise around a circular track in 12.3 seconds.

User Account

All Pages