What is the standard deviation of a portfolio

Reference no: EM131924988

Question: There is a 25 percent probability the economy will boom; otherwise, it will be normal. Stock Q is expected to return 18 percent in a boom and 9 percent otherwise. Stock R is expected to return 9 percent in a boom and 5 percent otherwise. What is the standard deviation of a portfolio that is invested 40 percent in Stock Q and 60 percent in Stock R?

Reference no: EM131924988

Questions Cloud

Explain what you need to know as a social worker : Explain what you need to know as a social worker,from a cultural point of view when working with a client/consumer from this kind of cultural background.

What is the most expensive house you can afford : Based on your answer from part b, if you are planning on a 20% down payment, what is the most expensive house you can afford? Hint: Use the percentage formula.

Perform systematic content analysis on the sociology : Decide on the form of media you will perform systematic content analysis on, using the sociology of gender key concepts you have learned in the course.

How does the value change : You own a 25-year maturity bond that you purchased 5 years ago. The bond pays $90 in annual interest, with a $1,000 par value.

What is the standard deviation of a portfolio : There is a 25 percent probability the economy will boom; otherwise, it will be normal. Stock Q is expected to return 18 percent in a boom and 9 percent.

Analyze your media life : You might consider such broad questions as: How are you using mobile communications devices? How are you involved in Social Networking sites?

What is the stock value per share of firm : Assume that the average firm in your company's industry is expected to grow at a constant rate of 5%, and its dividend yield is 4%.

Analyze how can wil set up a scheduling variance : Analyze how can Wil set up a scheduling variance? Is Wil over, on, or below cost and schedule? Is Wil using earned value?

What would be your arbitrage profit per unit borrowed : What arbitrage opportunity do these figures present? Assuming no transaction costs, what would be your arbitrage profit per unit borrowed?

User Account

All Pages