What is the standard deviation of the portfolio described

Assignment Help Financial Management
Reference no: EM131532683

Security F has an expected return of 10.10 percent and a standard deviation of 43.10 percent per year. Security G has an expected return of 15.10 percent and a standard deviation of 62.10 percent per year. a. What is the expected return on a portfolio composed of 31 percent of Security F and 69 percent of Security G? b. If the correlation between the returns of Security F and Security G is .26, what is the standard deviation of the portfolio described in part (a)?

Reference no: EM131532683

Questions Cloud

What is the project year zero net cash flow : If the tax rate is 31 percent and the required return on the project is 11 percent, what is the project's Year 0 net cash flow?
Case study-the united states airline industry : Conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry?
Are you surprised by different tax handling of debt : However, no such adjustment is made to the cost of equity. Are you surprised by this different tax handling of debt versus equity? Why or why not?
Make a sketch of the spectrogram : The C-major scale was analyzed in the spectrogram of Fig. with a window length of L = 256. Make a sketch of the spectrogram that would be obtained.
What is the standard deviation of the portfolio described : what is the standard deviation of the portfolio described in part (a)?
Comprehensive risk avoidance plan for your company : Comprehensive risk avoidance plan for your company, covering the topics listed below that have been discussed in course
Estimate the benefits from a training program : A way you might estimate the benefits from a training program designed to teach employees how to use the WWW to monitor stock.
Calculate the slope of sensitivity graph and comment briefly : A new technological line to produce shoes is being designed. Calculate the slope of the sensitivity graph and comment briefly.
Conduct a recruiting and staffing training program : Develop a comprehensive strategy for training new employees. Focusing on the role of the new employees within the organization.

Reviews

Write a Review

Financial Management Questions & Answers

  Offset any fees charged by the federal reserve

A bank maintains an average clearing balance of $5,000,000 with the Federal Reserve. The Federal funds rate is currently 6.5 percent. What amount of credit will the bank earn over the reserve maintenance period that can be used to offset any fees cha..

  Present value-make single investment

(Present value) Sarah Wiggum would like to make a single investment and have 2.2 million at the time of her retirement in 34 years. She has found a mutual fund that will earn 7 percent annually. How much will Sarah have to invest? today? If Sarah ear..

  What is the expected rate of return on your portfolio

Stock A has a beta of 1.50 and a standard deviation of return of 32%. what is the expected rate of return on your portfolio?

  Find the current price of the stock

he stock's discount rate is 12 percent. Find the current price of the stock.

  Determine the rate of return on the after tax cash flows

NO SPREADSHEET SOLUTION ALLOWED, ALL WORK MUST BE DONE BY HAND, READ CAREFULLY. A retired couple plan to purchase a rental property for $400,000. It is expected that the annual income before taxes will vbe $31,000 for the next 8 years. Determine the ..

  How much money should you put in savings account today

If you want to have $250,502 in 14years, how much money should you put in savings account today? Assume that the savings account pays you 5.90 percent, compound monthly.

  About the projects payback

Assume a project has the following expected cash flows: What is the project’s payback (payback period)?

  Prepare a schedule of collections and payments for six month

Prepare a Schedule of Collections and Payments for the six month period beginning in March, using the template provided and the data above.

  Used as the initial cash flow for this building project

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $590,000. The lot was recently appraised at $657,000. The company now wants to build a new retail store on the site. The building cost is estimated at $1,280,000. What ..

  High variable operating costs can be described as having

Firms with relatively low fixed operating costs and high variable operating costs can best be described as having:

  Acc310 due next week mondayplease include references and

due next week mondayplease include references and citations where need

  Calculate the net present value of the project

Calculate the net present value of the project.

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