What is the standard deviation of the resulting portfolio

Assignment Help Accounting Basics
Reference no: EM133071241

Question - You put 40% of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of .55. What is the standard deviation of the resulting portfolio? Show your work.

Reference no: EM133071241

Questions Cloud

What is meant by product contribution margin ratio : What is meant by a product's contribution margin ratio? How is this ratio useful in planning business operations?
What amount will you have to pay : Sandra agrees to pay a debt of $ 214,000 pesos at a simple interest rate of 4.65% per year. What amount will you have to pay in 5 months
Make journal entries to record the purchase of the patent : Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1
Market failure leading up to the intervention : Write a summary of your analysis. Identify the intervention and the market failure leading up to the intervention.
What is the standard deviation of the resulting portfolio : The stock and bond portfolios have a correlation of .55. What is the standard deviation of the resulting portfolio? Show your work
Determine the cost of goods destroyed : Goods costing $ 12,426 were left undamaged by the fire; remaining goods were destroyed. Determine the cost of goods destroyed
How strong and powerful do you think your government : How strong and powerful do you think your government should be? What kinds of problems can occur if government is too weak?
What is the book value of the building : What is the book value of the building at the end of 2021 assuming Bravestone Inc. is using double- declining balance method of depreciation
Determine the dividend coverage ratio for common shareholder : Tarej Company reported the following figures: Profit before tax: $500,000. Determine the dividend coverage ratio for common shareholders

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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