User Account

All Pages

What is the standard deviation of the portfolio

Assignment Help Financial Accounting
Reference no: EM132589575

Problem 1: Suppose you have a portfolio that is 30% in the risk-free asset and 70% in a stock. The stock has a standard deviation of 0.30 (i.e., 30%). What is the standard deviation of the portfolio?

0

0.09 (i.e., 9%)

0.21 (i.e., 21%)

0.30 (i.e., 30%)

Problem 2: Suppose you are buying one asset and shorting another asset (and the dollar value of the purchase and the short are the same). The standard deviation of this portfolio will be minimized if the two assets are:

  1. Negatively correlated with each other
  2. Positively correlated with each other

Reference no: EM132589575

Questions Cloud

Identify particular development project : Identify a particular development project you are familiar with. What kinds of methods do you believe were used to assess the project?
Determine what is total liabilities : Determine What is total liabilities? Collections of $150,000 were made from customers. Payments of $140,000 were made to suppliers.
What experiences support language acquisition : Plan to spend about 30 minutes to an hour in a preschool setting. A good time to observe would be during circle time, independent learning time, or during free.
Define strategies to help support children in the classroom : Choose one of the many communication disorders from the chapter and explain the main components of this disorder under the correct broad heading.
What is the standard deviation of the portfolio : The risk-free asset and 70% in a stock. The stock has a standard deviation of 0.30 (i.e., 30%). What is the standard deviation of the portfolio?
Motivational strategies and foundational organizational : you will write a paper exploring the relationship between motivational strategies and foundational organizational elements including values, mission,
What implications does the given have for your future role : Recently, there were two recent cover stories in Time Magazine: Their conclusion was that children today are different. In fact, based on what we now know.
Determine what is total assets : What is total assets? The company uses electronic deposits, so amounts for paychecks are transferred into the employee's accounts on the last day of the month
Write your observations of the child : Write your observations of the child, which should support your conclusion of developmental stage. Support your responses with the evidence from the textbook.

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