What is the expected variance of an equally weighted

Reference no: EM13294916

Assume the average variance of return for an individual security is 50 and the average covariance is 10. what is the expected variance of an equally weighted portfolio of 5,10,20,50 and 100 securities?(Hint: use the risk reduction formula)

Reference no: EM13294916

Questions Cloud

Determine the separation between the slits : A 2-slit experiment is performed with light of wavelength 589nm. Fringes are measured on a screen 1.50m away from the slits, What is the separation between the slit

Compute the theoretical amount of 2.5 m naoh : Calculate the theoretical amount of 2.5 M NaOH (10%) solution needed to convert the benzoic acid to its water-soluble salt. Is the combined volume of NaOH used in the extractions sufficient for complete deprotonation of benzoic acid

What is the energy stored on the capacitor : A parallel plate capacitor is made with plates of 10 cm on a side, situated 0.1mm apart. what is the energy stored on the capacitor

Difference between non-cooperative and coordination games : Write a One Page write up with single space about the difference between Non-Cooperative and Coordination Games. What is the benefit of coordination between players.Stick to the outcome, not to the definition.

What is the expected variance of an equally weighted : Assume the average variance of return for an individual security is 50 and the average covariance is 10. what is the expected variance of an equally weighted portfolio of 5,10,20,50 and 100 securities?(Hint: use the risk reduction formula)

Develop a court management policy proposal : The objective of this assignment is to enable you to demonstrate your ability to develop a court management policy proposal that addresses the key factors that should be considered to ensure that legal requirements and best practices in management..

Find the overall magnification of the friend : Visitors at a science museum are invited to sit in a chair to the right of a full-length diverging lens (f1 = -2.94 m), Find the overall magnification of the friend when viewed through both lenses

Find kvar of capacitance required to correct power factor : A 460V load draws 18kVA at 0.82 pf, lagging. Find the kVAR of capacitance required to correct the power factor to 0.93, lagging.

What is the correlation between the returns on the portfolio : The annual expected return and standard deviation of returns for 2 assets are as follow.

User Account

All Pages