The expected standard deviation of the portfolio

Assignment Help Financial Management

Reference no: EM131065668

You plan to invest 25% of your funds in X Ltd shares and 75% in Y Ltd shares. The expected return for X is 8% and its standard deviation of returns is 14%. The expected return for Y is 10% and its standard deviation of returns is 20%. The correlation of the returns on the two assets is 0.5. The expected standard deviation of the portfolio is

Reference no: EM131065668

Questions Cloud

Regarding government agency securities : Which of the following is true regarding U.S. Government Agency Securities?

End-of-the-year book values for equipment : Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Do not round intermediate calculations. Leave no cells blank. Enter "0" when necessary.) A piece of newly purchased industrial equipment costs $1,110,00..

Exhausts retained earnings and is forced to sell new shares : Precision Steel expects to retain $72,000 of it earnings for the current year which it will use to partially fund new investment opportunities. The optimal capital structure is comprised of 30% debt, 10% preference shares, and 60% ordinary share equi..

What would be the expected price of an ordinary share : What would be the expected price of an ordinary share when dividends are expected to grow at an 18% annual rate until time 2, then grow at a constant rate of 6% per annum, if the share's required return is 12% and the last dividend paid was $1.75?

The expected standard deviation of the portfolio : You plan to invest 25% of your funds in X Ltd shares and 75% in Y Ltd shares. The expected return for X is 8% and its standard deviation of returns is 14%. The expected return for Y is 10% and its standard deviation of returns is 20%. The correlation..

What is expected return on portfolio : You own a portfolio that is 22 percent invested in Stock X, 37 percent in Stock Y, and 41 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively. what is expected return on portfolio

Net present value of the proposed investment : Your colleague has asked you to consider and investment of $250,000 to her KLW compact fitness equipment business that will build and sell compact fitness equipment specialized for small apartments and condos in Vancouver. calculate the present value..

Relevant cash flow-explain incremental cash flows : Relevant Cash flow scenario Assume you have just graduated from college with a degree in finance and you are trying to explain to your boss the importance of identifying and using the appropriate cash flows when you make financial decisions. Explain ..

What about triple in value : Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.4 percent and the standard deviation of those returns in this period was 43.77 percent. What is the approximate pro..

User Account

All Pages