What would make for a larger increase in the stock variance

Assignment Help Accounting Basics
Reference no: EM13599772

The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%

A. What would make for a larger increase in the stock variance an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation?

B. An inventor who currently hold the market index portfolio decides to reduce the portfolio allocation to the market index to 90% and to invest 10% in stock A. which of the changes in a, will have greater impact on the portfolio standard deviation?

Reference no: EM13599772

Questions Cloud

The devon motor company produces motorcycles during april : the devon motor company produces motorcycles. during april the company purchased 8000 batteries at a cost of 10 per
Evaluate the factors that help to determine that market : evaluate the factors that help to determine that market value of stock. consider the factors that are most relevant to
Tabulate and draw the investment opportunity set of the two : tabulate and draw the investment opportunity set of the two risky funds. use investment proportion for the stock fund
Rider industries issued 6000000 of 8 debentures on 5112 and : rider industries issued 6000000 of 8 debentures on 5112 and received cash totalling 5098102. the bonds pay interest
What would make for a larger increase in the stock variance : the standard deviation of the market index portfolio is 20. stock a has a beta 1.5 and residual standard deviation of
Trauscht corporation has provided the following data form : trauscht corporation has provided the following data form its activity based costing system activity cost pool assembly
Assume that output can be produced only using processes a : assume that output can be produced only using processes a and b. process a requires inputs l and k to be combined in
Harwichport company has a current ratio of 30 and an acid : harwichport company has a current ratio of 3.0 and an acid ration of 2.8 current assets equal 210000 of which 5000
During the year the company earned a gross profit of : a condensed balance sheet for bradford corporation prepared at the end of the year appears as follows assets

Reviews

Write a Review

Accounting Basics Questions & Answers

  Dennis a self-employed businessman flew to asia on

dennis a self-employed businessman flew to asia on september 15. the primary purpose of the trip was business. dennis

  Nrtons outstanding stock consists of a 13000 shares of

nortons outstanding stock consists of a 13000 shares of noncumulative 8 preferred stock with a 10 par value and b 32500

  Compare the amount of overhead allocated to one mobile safe

wilkins corporation manufactures safes-large mobile safes and large walk-in stationary bank safes. as part of its

  Notice from part 1 that ending raw material in december was

the december 2013 sales were 180000. the companys budgeted unit sales are as

  What are the pros and cons to toyota

Why do you think Toyota is expanding so aggressively outside of Japan instead of focusing more on manufacturing in Japan and exporting to other countries?

  Landseekers restaurants reported cost of goods sold of 322

landseekers restaurants reported cost of goods sold of 322 million and accounts payable of 83 million for 2011. in 2010

  The valasquez company a maker of a variety of metal and

the valasquez company a maker of a variety of metal and plastic products is in the midst of a business downturn and is

  The sales mix percentages for novotnas boston and seattle

the sales mix percentages for novotnas boston and seattle divisions are 70 and 30. the contribution margin ratios are

  Wind fall a manufacturer of leaf blowers began operations

wind fall a manufacturer of leaf blowers began operations this year. during this year the company produced 10000 leaf

  Pfm choose two 2 companies in the same industry and work on

choose two 2 companies in the same industry and work on the criterion mentioned below ltbrgt ltbrgtabusiness overview

  Harry was experiencing financial difficulties and could not

harry was experiencing financial difficulties and could not make the mortgage payments on his home. the mortgage holder

  Would you agree with xyzs decision

The XYZ Company billing department has decided to assign one employee to each of its customers. This employee will be responsible for granting credit to the client and then handling the billing.

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