What is weight of each stock in minimum variance portfolio

Assignment Help Financial Management

Reference no: EM13929523

Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between the two stocks is –.10. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Weight of Stock D

Weight of Stock I

Reference no: EM13929523

Questions Cloud

Calculate the c0ost of equity using dividend discount model : Calculate the following. Cost of equity using dividend discount model: Cost of preferred stock: Cost of debt. Include both. Briefly discuss the difference in your calculation and the bosses’ calculation. Where did he go wrong?

Compute the indirect quote for the rand rupee and yen : What does the evidence in Table 2.3 indicate about the expected future value of the Euro relative to the dollar? Compute the indirect quote for the rand, rupee, and yen as of March 9, 2010. (Refer to Table 2.1.)

Information found on the topic : For this assignment, visit the Guttmacher Institute website (a research institution for human sexuality) at http://www.guttmacher.org/ Select a topic and investigate information related to that topic, Information found on the topic

Standard deviation of the minimum variance portfolio : The stock of Bruin, Inc., has an expected return of 25 percent and a standard deviation of 38 percent. The stock of Wildcat Co. has an expected return of 12 percent and a standard deviation of 43 percent. The correlation between the two stocks is .43..

What is weight of each stock in minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between th..

Recorded the accrued interest on december : Show the effects of the above transactions in a horizontal statements model like the one shown below.

Contribution margin per unit : Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 ho..

Compute the price of the bonds based on semiannual analysis : You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 11 percent, which is paid semiannually. Compute the price of the bonds based on semiannual ana..

Amortized loans and amortization schedule problem : An amortized loan is repaid with annual payments which start at 400 at the end of the first year and increase by 45 each year until a payment of 1480 is made, after which they cease. If interest is 4% effective, find the amount of principal in the fo..

User Account

All Pages