What is the standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM132826140

Consider a portfolio with 80% invested in stock A and 20% in stock B. The expected return of stock A is 32%. The expected return of stock B is 12%. The standard deviation of stock A is 25%. The standard deviation of stock B is 16%. If the correlation coefficient between the returns on A and B is 0.45, what is the standard deviation of the portfolio?

Reference no: EM132826140

Questions Cloud

How much will you pay for a share today : The company has just paid a dividend of $10.50 per share. If you require a return of 14 percent on the company's stock, how much will you pay for a share today
What was the company cash balance on March : Weimar World, a tax-preparation service, had a cash balance of $245,000 as of March 1. What was the company's cash balance on March 31
How much is the preferred dividends : If the preferred stock is Cumulative, how much is the preferred dividends and how much is the common stock dividend in 2019?
Explain expected return of jaden''s complete portfolio : If Jaden decides to invest 140% of his money in the equity fund, what is the expected return of Jaden's complete portfolio?
What is the standard deviation of the portfolio : If the correlation coefficient between the returns on A and B is 0.45, what is the standard deviation of the portfolio?
What is the? firm net income : What is the? firm's 2016 net income? In? 2016, Allen Corporation had sales of $67 ?million, total assets of $45 ?million, and total liabilities of $20 million
How much interest revenue will Kelemen record : Kelemen Asset Management invested in the bonds of DEF Co. on? 1/1/19. How much interest revenue will Kelemen record on? 6/30/19
What is the remaining margin in the account : If the stock price changes from $125 to $102 one year later, what is the remaining margin (percentage margin) in the account?
What stock price will james get a margin call : James earns no interest on the funds in his margin account. At what stock price will James get a margin call?

Reviews

Write a Review

Finance Basics Questions & Answers

  Interest rate swaps with no rate adjustmentsdell inc wants

interest rate swaps with no rate adjustments.dell inc. wants to borrow pounds and virgin airlines wants to borrow

  Bond value and required rate of return

Discuss the relationship between bond value and required rate of return.

  The kaizen strategy can be used for an ongoing improvement

the kaizen strategy can be used for an ongoing improvement process and to evaluate total quality control and make

  Corporate bonds have a 025 liquidity premium versus a zero

suppose 10-year t-bonds have a yield of 5.30 and 10-year corporate bonds yield 6.75. also corporate bonds have a 0.25

  Why are athletic departments development efforts so critical

Why are athletic departments development efforts so critical?

  What is the current price per share

The farmers market just paid an annual dividend of $5 on its stock. The growth rate in dividends is expected to be a constant 5% per year indefinitely.

  What is the operating income for both firms

Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in equity. What is the operating income (EBIT) for both f..

  Which project is preferred if you rank by irr

Your firm is considering two projects with the following cash flows: If the appropriate discount rate is 12%, rank the two projects.

  Calculate the option profit to the trader

It is April and a trader buys 100 September put options with a strike price of $21. The stock price is $17.63 and the option price is $4.74. At the expiration, the stock price becomes $18.01. Calculate the option profit to the trader.

  Bond valuation? relationships

The 18?-year, ?$1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is ?$925?, and the? market

  What is the company net working capital

The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short term notes payable worth $1,151,663 and other current assets of $121,455. What ..

  What is emmas return on the stock

Return on Stock. Emma bought a stock a year ago for $53 per share. She received no dividends on the stock and sold the stock today for $38 per share.

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