Weight of stock in the minimum variance portfolio

Assignment Help Financial Management

Reference no: EM13934337

Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between the two stocks is –.10. 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: EM13934337

Questions Cloud

What is the companys cost of equity : The Down and Out Co. just issued a dividend of $2.66 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $55 a share, what is the company's cost of ..

The cost of capital for a project depends : The cost of capital for a project depends on A.

NPV value obtained by discounting nominal cash flows : The NPV value obtained by discounting nominal cash flows using the nominal discount rate is the: I) same as the NPV value obtained by discounting real cash flows using the real discount rate II) same as the NPV value obtained by discounting real cash..

What is the current yield on this bond : A coupon bond that pays interest of $54 annually has a par value of $1,000, matures in 5 years, and is selling today at $73.75 discount from par value. What is the current yield on this bond? Show step-by-step work

Weight of stock in the minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between th..

The after-tax cash flows generated by the two-year : Cnooc, a Chinese public-sector company, has made a bid to purchase Unocal, a big U.S oil company, for $18.5 billion in June 2005. Treat this as an initial investment made by Cnooc in this two-year, U.S based project. If the after-tax cash flows gener..

What is the market value of equity-market capitalization : HCI primarily sells to customers who shop in the stores. Customers come to the store and talk with a sales representative. The sales representative assists the customer in determining the type of computer and peripherals that are necessary for the in..

Write a java code to check the triangle is valid or not : Write a Java code to check the triangle is valid or not, by inspecting it's sides.

User Account

All Pages