User Account

All Pages

What is the covariance between the portfolio and the market

Assignment Help Financial Accounting
Reference no: EM132775616

Suppose that the index model for stocks A and B is estimated from excess returns with the following results:

RA = 2.40% + 0.85RM + eA

RB = -2.40% + 1.30RM + eB

σM = 25%; R-squareA = 0.17; R-squareB = 0.11

Assume you create portfolio P with investment proportions of 0.60 in A and 0.40 in B.

Problem a. What is the standard deviation of the portfolio?

Problem b. What is the beta of your portfolio?

Problem c. What is the firm-specific variance of your portfolio?

Problem d. What is the covariance between the portfolio and the market index?

Reference no: EM132775616

Questions Cloud

Which provide dod primary interface with the senate armed : Which provide DoD's primary interface with the Senate Armed Services Committee provisions of the National Defense Authorization Act?
What spending variance for wages and salaries in april : The actual wages and salaries for the month was $25,510. The spending variance for wages and salaries in April would be closest to
How do calculate the contribution margin per unit of service : Calculate the contribution margin per unit of service (the per unit of service is one night accommodation for one guest) and the contribution margin ratio
Evaluate the history of cryptography from its origins : In the initial milestone writing assignment, you will evaluate the history of cryptography from its origins. Analyze how cryptography was used and describe.
What is the covariance between the portfolio and the market : Assume you create portfolio P with investment proportions of 0.60 in A and 0.40 in B. What is the covariance between the portfolio and the market index?
How does the color represent or reinforce the company value : Find a company logo associated with the color. Include a link to the logo image. How does the color represent or reinforce the company's values/mission?
How much do the adjustments affect net income attributable : How much do the adjustments affect net income attributable to minority interest? (positive number for increase, negative number for decrease)
Calculate the steam requirements and steam economy : A fruit juice at 4°C with 3% total solids is being concentrated in a single-effect evaporator.Calculate the steam requirements and steam economy for the process
Describe economic influences that impact people health : Health determinants are a diverse variety of cultural, social, economic, and environmental variables that influence individual and community health.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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