Weight of each stock in minimum variance portfolio

Assignment Help Financial Management

Reference no: EM131351146

Consider two stocks, Stock D, with an expected return of 15 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 11 percent. The correlation between the two stocks is –.04. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Weight of Stock D

Weight of Stock I Consider two stocks, Stock D, with an expected return of 15 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 11 percent. The correlation between the two stocks is –.04. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Weight of Stock D

Weight of Stock I

Reference no: EM131351146

Questions Cloud

Describe the people and activities going on at public place : Describe the people and activities going on at a public place that you have visited. Suggestions: A theme part, a park, a fair, part of a hospital, part of an airport, part of a hotel, one location in a city, and so on.

Advantages to using hierarchical addressing : Discuss the advantages to using hierarchical addressing and its relevance to this week's VLSM topic. How does hierarchical addressing help with routing efficiency?

What ethical considerations you perceive in field experiment : A social psychologist conducts a field experiment at a local bar that is popular with college students.- What ethical considerations, if any, do you perceive in this field experiment? Is there any deception involved?

Discuss his historical social and cultural importance : Select one person (playwright, actor, designer, etc.) from the groups listed above. eExplore, prepare and discuss his or her historical, social and cultural importance to what we call "diverse contemporary theatre" today?

Weight of each stock in minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 15 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 11 percent. The correlation between th..

Write a paragraph supporting the pro position : Should people who are observed in field experiments be debriefed? Write a paragraph supporting the pro position and another paragraph supporting the con position.

Do you think facebook is making you mean : Do you think Facebook is making you mean? Explain why or why not. Do you say things that you might not say face to face? If the answer is "Yes," is this always a bad thing?

Describe at least two levels of each variable : What is a variable? List at least five diff erent variables and then describe at least two levels of each variable. For example, age is a variable.

Maximum payment can afford including taxes and insurance : You are planning to buy a house. Assume that you have the cash to pay 10% down payment on any home that you $2, 200/month maximum payment can afford including taxes and insurance (no PMI required). A lender offers you a 20-year fixed mortgage for the..

User Account

All Pages