What is the expected return and standard deviation

Assignment Help Finance Basics
Reference no: EM13294360

If there are no restrictions on short sales or borrowing, what is the expected return and standard deviation on the portfolio of these two assets if they are invested half in A and half in B?

a. Exp. Return(ab) =9.0% and Standard Deviation = 9%
b. R(ab)= 11.0% and SD = 6%
c. R(ab) = 11.0% and SD= 6%
d. R(ab) = 12.0% and SD = 9%
e. None of the above.

 

Reference no: EM13294360

Questions Cloud

Using a software program to create story books : submit a unit plan spanning Two to Four weeks. See this example of a unit plan, (or search the web for a unit plan example that best suits matches your needs). Technology should be integrated for assessment, instruction, and student engagement..
What should sedly sell for today : The stock of Sedly Inc. is expected to pay the following dividends: Dividend Year 1 $2.25; Year 2; $3.50; Year 3 $1.75; Year 4 $2.00. at the end of the fourth year its value is expected to be 37.50. What should Sedly sell for today if the return o..
What is the present value of this liability : If the relevant discount rate is 8 percent, what is the present value of this liability?
What total return did nancy earn : What were the dividend ield and the capital gains yield? Please show work with the answers.
What is the expected return and standard deviation : If there are no restrictions on short sales or borrowing, what is the expected return and standard deviation on the portfolio of these two assets if they are invested half in A and half in B?
Define how to calculate the ph of the solution : A solution is made by dissolving 21.7 g of HCl in enough water to make 822 mL of solution. Calculate the pH of the solution at 25 degrees Celsius
Critical thinking : Unlike talk show hosts or political bloggers, students in college are asked to exercise "critical thinking," which means they must clearly and objectively see both sides of an issue in order to effectively argue a position.
What is the standard deviation of a portfolio : What is the standard deviation of a portfolio composed of equal proportions of gold and stocks?
Explain gluconeogenesis high energy phosphate bonds : The Conversion of 2 pyruvate to 1 glucose by gluconeogenesis high energy phosphate bonds- a. Uses four. B. Uses six. C. Produce two D, produces one E, none of these.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is market efficiency

What is Market Efficiency? What are its implications for the pricing of securities?

  What are the one-time cash flows associated with project

What are the one-time cash flows associated with ending the project (i.e. terminal Cash flows)? Note, we only want terminal cash flows, not operating cash flows in the last year.

  Compute the weights for disney''s equity

Compute the weights for Disney's equity and debt based on the market value of equity and Disney's market value of debt, computed in step 5

  What will be the stock price before and after the repurchase

Good values inc., is all-equity-financed. The total market value of the firm currently is $150,000. and there are 5,000 shares outstanding. Good value plans to repurchase $15,000 with of stock. Ignore taxes.

  Computing multiple cash flows for a year

Computing multiple cash flows for a year and the amount of the annuity shown below is the amount of each individual cash flow

  Profitable deployment of additional direct labor hours

Lamb Golf Accessories Limited produces a range of specialized waterproof golf shoes, in 4 different quality specifications. Deluxe 600, Palmer 20, Nicholas 360, Standard 640.

  Find out present value

Find out present value of $300 received at the beginning of each year for 5 years? Suppose that the first payment is not received until the beginning of the third year.

  What is the expected value of the rate of return

The most likely (with probability 80%) value is 5 years. Assume the heat exchanger has no salvage value at the end of its useful life.

  Which of the following annual dividend patterns

3M revises its dividends once per year, and the quarterly dividend is one-fourth of the annual dividend. Which of the following annual dividend patterns would you recommend?

  Prepare a columnar summary of performance

The fees were based on an average of 50,000 vehicle-admission days every week for the twenty week session, multiplied by average entry and other fees of $5 per vehicle-admission day.

  What is mygs roic

MYG reported $7,500 of operating current assets and $1,750 of operating current liabilities. Further it has $10,000 of operating long term assets and an EBIT of $3000 with a 25% tax rate. What is MYG's ROIC (return on invested capital)

  Calculate the npv in u.s. dollars

Calculate the NPV in U.S. dollars. (Show all calculations and ignore working 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