Imagine that two assets have the same average return

Assignment Help Financial Management

Reference no: EM131188815

Imagine that two assets have the same average return of 10 percent and the same standard deviation of 30%. Would the average return on a 50-50 portfolio of these two stocks be equal to, greater than, or less than 10 percent? Would the portfolio standard deviation be equal to, greater than, or less than 30%? Explain why

Reference no: EM131188815

Questions Cloud

Discuss whether or not agencies mentioned took any actions : If you think actions were taken, state what actions were taken and explain why those actions were taken. If you think no actions were taken, analyze why no action was taken and whether action should have been taken under the circumstances. Justify..

Written comparison of the capital structure : Research publicly traded companies, selecting two companies in different sectors to provide a written comparison of the capital structure for each. Explain your conclusions on the similarities and differences. What factors can you suggest for why eac..

Write a letter of instruction to your client : Write a letter of instruction to your client as a a sales person advising him on how he does not qualify for credit on buying a stove in tour company.

Determine the resultant shear and moment : Here hurricane winds caused the failure of this highway sign. Assuming the wind creates a uniform pressureon the sign of 2 kPa, use reasonable dimensions for the sign and determine the resultant shear and moment at the two connections where the fai..

Imagine that two assets have the same average return : Imagine that two assets have the same average return of 10 percent and the same standard deviation of 30%. Would the average return on a 50-50 portfolio of these two stocks be equal to, greater than, or less than 10 percent? Would the portfolio stand..

Calculate the reward to risk ratio for the firm : A firm’s existing assets have an expected return of 16% and an associated standard deviation of 20%. A proposed project has an expected return of 26% and an associated standard deviation of 30%. Calculate the reward to risk ratio for the firm. Calcul..

Central bank of argentina : Using a correctly labeled graph, show how the monetary policy you identified in B would affect the Argentinian money supply and Argentinian nominal interest rates.

Compare and contrast price analysis versus cost analysis : Compare and contrast price analysis versus cost analysis, explain how they differ, and describe when it is appropriate to use price analysis versus cost analysis. Select one of the two methods and determine under what condition(s) it would not be ..

How might weehan proceed with her decision making process : How might WeeHan proceed with her decision-making process?- WeeHan, 18, is a student at a senior college in New York City.

User Account

All Pages