User Account

All Pages

Portfolio with a standard deviation

Assignment Help Finance Basics
Reference no: EM133075256

You have a portfolio with a standard deviation of 21% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing?portfolio, which one should you? add?

 

Expected Return

Standard Deviation

Correlation with Your? Portfolio's Returns

Stock A

14%

22?%

0.2

Stock B

14?%

18%

0.5

 

 

Reference no: EM133075256

Questions Cloud

What will be the gain or loss each of the four months : Joan Tam is considering a second future's trade, specifically on coffee. The future's price is .56 per pound. What will be the gain or loss
Career goals in the future : What are your career goals in the future, and how do you think that MBA program of WUV would help achieve your goals?
What is the arithmetic return : Ten annual returns are listed in the following table: -19.9%16.1%18.3%-49.9%43.4%1.6%-16.1%46.1%44.9%-3.5%
Compute the actual quantity purchased : compute the actual quantity purchased, the standard quantity allowed for materials in total for the month's production, and the standard quantity per unit
Portfolio with a standard deviation : You have a portfolio with a standard deviation of 21% and an expected return of 19%. You are considering adding one of the two stocks in the following table.
What is Phonics and Define phonics : What is Phonics? Define phonics. Use your CORE book and resources in this module to write up a thick explanation.
What is the average collection period : Question - A firm has sales of $2.2 million, and 25 percent of the sales are for cash. What is the average collection period
Why have special trading session during open : 1. Why have special trading session during open? 2. Why have special trading session during close?
What is value of the unlevered company : Question - The free cash flows of MN Company are expected to be $24 million per year for ever. What is value of the unlevered company

Reviews

Write a Review

Finance Basics Questions & Answers

  How many shares are on issue today

Blissful Mining Ltd announced will be undertaking a rights issue to fund a $88M project. After the market announcement Blissful Petroleum shares were trading

  What volume of deposits should institution try to attract

Gold Brick Bank plans to launch a new deposit campaign next week in hopes of bringing in from $100 million to $600 million in new deposit money.

  What factors might play into employee stress

Compare it to that of a nonprofit in a large city, what factors might play into employee stress?

  What must the coupon rate be on the bonds

Osboume Corporation has bonds on the market with 19.0 years to maturity. YTM of 11.1 percent, and a current price of $937. The bonds make semiannual payments.

  Discount rate and consequently npv

Assume that the risk of investing in these manufacturing plants is higher than the overall risk of the company, what would happen to the discount rate

  Which is weighted average cost of capital for minie closest

Which is the weighted average cost of capital for Minie closest to? (please show calculation)

  What is the current bond price

The bonds make semiannual payments and have a par value of $1,000. if the ytm on these bonds is 11 percent, what is the current bond price?

  Analysis of factual and forecasted information

Answer the activity in as much detail as possible, considering your organisational requirements.

  What is the amount of each payment

Ashea is a 22 year old senior who used the Stafford loan program to borrow $4,000 four years ago when interest rates were 4.06% per year. $5,000 was borrowed.

  What will the stock price of harrods be after acquisition

If Harrods offers 1.5 million shares of its stock in exchange for the 3 million shares of Selfridge, what will the stock price of Harrods be.

  Find the impact of the company mission and vision

Find the impact of the company's mission, vision, and primary stakeholders on its overall success as a competitive employer in the industry.

  Million of senior debt and has net tangible assets

Currently, the company has outstanding $100 million of senior debt and has net tangible assets of $201 million.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd