User Account

All Pages

What are the standard deviation and expected return

Assignment Help Finance Basics
Reference no: EM131126386

You are going to invest in Asset J and Asset S. Asset J has an expected return of 14 percent and a standard deviation of 49 percent. Asset S has an expected return of 10 percent and a standard deviation of 19 percent. The correlation between the two assets is .50. What are the standard deviation and expected return of the minimum variance portfolio? What is going on here?

Reference no: EM131126386

Questions Cloud

Will security prices increase decrease or stay the same : Will security prices increase, decrease, or stay the same following this announcement? Does it make any difference whether the 2 percent figure was anticipated by the market? Explain.
Does it follow that an investor can control the level : In broad terms, why is some risk diversifiable? Why are some risks nondiversifiable? Does it follow that an investor can control the level of unsystematic risk in a portfolio, but not the level of systematic risk?
Derive our expression in the chapter for the portfolio : Derive our expression in the chapter for the portfolio weight in the minimum variance portfolio. (Danger! Calculus required!)
What are the portfolio weights : Using the result in Problem 23, show that whenever two assets have perfect negative correlation it is possible to find a portfolio with a zero standard deviation. What are the portfolio weights?
What are the standard deviation and expected return : Asset S has an expected return of 10 percent and a standard deviation of 19 percent. The correlation between the two assets is .50. What are the standard deviation and expected return of the minimum variance portfolio? What is going on here?
Calculate the expected return and standard deviation : Your portfolio consists of 55 percent Stock A, 20 percent Stock B, and 25 percent Stock C. Calculate the expected return and standard deviation of your portfolio. The formula for calculating the variance of a three-stock portfoliois
Why would the dividend yield differ significantly : Why would the dividend yield differ significantly from the rate earned on common stockholders’ equity?
Should the rate earned on common stockholders : Should the rate earned on common stockholders' equity normally be higher or lower than the rate earned on total stockholders' equity? Explain.
Calculate the expected return and standard deviation : The correlation between the two stocks is .25. Is it possible for there to be a minimum variance portfolio since the highest-return stock has the lowest standard deviation? If so, calculate the expected return and standard deviation of the minimum va..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the value of investment

If a nurse deposits $1,000 today in a bank account and the interest is compounded annually for 12 percent, what will be the value of this investment:

  Determination of insurance cost

Marisa has a policy with replacement price coverage and 80 percent co-insurance, & has a loss of $100,000 on her house. The replacement price is $400,000 & total policy coverage is $300,000.

  Hawkins trucking is financing a new truck with a loan of

hawkins trucking is financing a new truck with a loan of 1-000 to be repaid in 5 annual end-of-year installments of

  Equity indexes i would like to know what the s&p 500 measur

Assignment 3: Equity Indexes I would like to know what the S&P 500 measures. I would like to know what the Dow Jones Industrial Average measures? What are the differences between the Dow Jones Industrial Average and the S&P 500? What is an exchange t..

  Should a mnc change

In your opinion do Multinational Corporations compromise ethics to compete internationally? Should a MNC change, alter or stretch their ethical standards to compete internationally?

  Find the expected value for the number of green candies

If we select 4 candies from a bag at random and record the number of green candies, the probability distribution is as follows: x 0 1 2 3 4 P(x) .3895 .4141 .1651 .0293 .0019 Find the expected value for the number of green candies.

  Will you be able to pursue your dream

You are hoping that the annual income from the portfolio will be enough to cover your two years in film school at a cost of $41,000 per year. Will you be able to pursue your dream? If, one the other hand, you liquidated the portfolio, what is its ..

  Would exchange rate changes always increase the risk of

would exchange rate changes always increase the risk of foreign investment? discuss the condition under which exchange

  Describe ways alleviate a potential shortage for retirement

Briefly discuss why retirement planning is "nothing more than cash flow planning."Briefly discuss the ramifications for an individual with insufficient funds at retirement time. Describe ways to alleviate a potential shortage for retirement.

  The company has 200000 loan outstanding from local

the company has 200.000 loan outstanding from local community bank. the interest rate on the loan is 11.5 fixed.

  Actual deferral percentage test for nondiscrimination

Actual deferral percentage test for nondiscrimination in a 401(k) plan.

  Sign up for the free access account

Navigate to www.morningstar.com. At some point in the process you will be asked to sign up for an account. You DO NOT NEED ANY PAID ACCESS TO COMPLETE THIS ASSIGNMENT. Although you will need to sign up for the free access account. Select the "Tool..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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