Weight of each stock in minimum variance portfolio

Assignment Help Financial Management

Reference no: EM131356175

Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 36 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 16 percent. The correlation between the two stocks is –.01. 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: EM131356175

Questions Cloud

How does your companys prices compare to competitors : By now you should have a pretty good idea about the major information sources available on the company you have chosen for your SLPs (Keurig Coffee Maker). Unfortunately, few if any companies will directly admit what pricing strategy they use. Mos..

Capital budgeting techniques : FIN200 Assignment - How their decision making could be related to capital budgeting techniques such as, Internal Rate of Return, Net Present Value etc. Explain the following concepts in relation to Capital Budgeting Techniques.

Create a strategy for negotiating the purchase of business : BUS-402: From the e-Activity, discuss the best possible method for determining the value of the business you selected. Create a strategy for negotiating the purchase of the business you selected in the e-Activity.

Analyze steps involved in crafting a wining business plan : BUS-402: Analyze the steps involved in crafting a wining business plan and make at least one recommendation for improving the process. Explain your rationale for making the recommendation you did.

Weight of each stock in minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 36 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 16 percent. The correlation between th..

What are the advantages and the disadvantages of a merger : What are the advantages and the disadvantages of a merger? In your response, provide an example of either - a merger that was successful, or one that was unsuccessful.

Analyze and resolve problems related to healthcare services : How will accomplishing these objectives support your success in management? What risks or challenges might a health care manager encounter if he or she has not mastered these objectives? Explain.In your own words, please post a response to the Di..

Fixed-coupon bond without callable feature : The price of fixed-coupon bond will be higher as the coupon rate increases. The price of convertible bond will be higher when the issuing firm has higher growth potential. The price of fixed-coupon bond with callable feature will be higher than that ..

Identify if a firewall is enabled on your machine : Identify if a firewall is enabled on your machine and if you need Windows® firewall running in addition, if that anti-virus software is installed on your machine.

User Account

All Pages