Smallest number of assets that his portfolio should contain

Assignment Help Financial Management

Reference no: EM131529941

An investor has access to a set of N securities (where N is large). Each of them has an annual return variance of 0.25 and the correlation between every pair of the N assets is 0.5. The investor wants to build an equally weighted portfolio of a subset of these N assets that has a return variance of 0.15 or smaller. What is the smallest number of assets that his portfolio should contain?

Reference no: EM131529941

Questions Cloud

How you will finalize payments to suppliers : How you will finalize payments to suppliers? Describe the methods that will be used to measure supplier performance. Why you have chosen these measurements.

Find proportions of investors bought stocks and bonds : A major investment company wanted to know what proportions of investors bought stocks, bonds, both stocks and bonds, and neither stocks nor bonds.

Socio-emotional development in middle childhood : Discuss about the Parental Style and Socio-Emotional Development in Middle Childhood.

How do you think the outcry from social media affected : How do you think the outcry from social media affected the potential for a franchise opportunity for the Penguin? Whose side are you on? Why?

Smallest number of assets that his portfolio should contain : What is the smallest number of assets that his portfolio should contain?

Is this a fair bet : Your friend John says: "Let toss coins. Each time I'll toss first and then you. If either coin comes up heads, I win. If neither, you win."

Determine compensation that fictitious company may provide : Determine the compensation that the fictitious company may provide to the separated employee. Predict three (3) ways that this layoff may affect the company

What specific topics do you plan to discuss : What specific topics do you plan to discuss? Why did you make these topic choices?What will you lead in with, and what will you discuss?

Explain the web sites regarding your suggestions : Examine the Web sites regarding your suggestions as to how they might be improved. Create a PowerPoint presentation that includes 10-12 slides.

User Account

All Pages