What are the expected return and standard deviation

Assignment Help Accounting Basics
Reference no: EM132895799

Problem - Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Reference no: EM132895799

Questions Cloud

Is the restaurants claim reasonable : A fast food restaurant advertises that customers will receive their orders in two minutes or less. A set of 10 samples of size 5 was taken recently, and it was
Examine the strategic lenses of an organization : Examine how the strategic lenses of an organization may or may not after the degree of alignment among levels.
Case study-guilt-shame and reparative behavior : 1. Identify the methods used in the above study
Bonds present versus other forms of financing : What benefits and risks do bonds present versus other forms of financing?
What are the expected return and standard deviation : Stock A has an expected return of 12% and a standard deviation of 40%. What are the expected return and standard deviation
Why an awareness of ethical issues can be important : Explain why an awareness of ethical issues can be important for international business.
Case study on motivation : They've made some changes at Badger Mining Corp. over the past year-expanded a production site, revamped the interior at company headquarters in Berlin, Wiscons
Difference in the three groups hours of practice : 1. Our author, Malcolm Gladwell, notes that outliers in a particular field reached their lofty status through a combination of ability, opportunity, and utterly
What is Stock A beta : The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A's beta

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd