Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4. in simpleland, the risky asset market consists

4. In Simpleland, the risky asset market consists of only two risky stocks, A and...

80.2K

Verified Solution

Question

Accounting

4. In Simpleland, the risky asset market consists of only two risky stocks, A and B, whose details are listed below:

imageFurthermore, the correlation coefficient between the returns of stocks A and B is = 0.1.

(a) What is the expected rate of return on the market portfolio?

(b) What would be the standard deviation of the market portfolio?

# of Shares Price Expected Standard Stock Outstanding per Share Rate of Return Deviation A 100 $1.50 15% 15% B 150 $2.00 12% 9%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2 Determine the number of solutions of the equation in the complex number system 8x3...

Algebra
Q

1. Find all the values of x such that the given series would converge. ??n=1 (3x)^n/n^11 The series...

Basic Math
Q

You want to know if Apple and Android phone users use different mobile apps for social...

Statistics
Q

A phone housing case is to be manufactured from Polyester Based - Thermoplastic Polyurethanes (TPU) with...

Mechanical Engineering
Q

Please explain the principle of operartion of NMOS and PMOS and how this relates to all...

Electrical Engineering
Q

Describe the leadership traits,skills, and behavior of Okonkwo and how that impacted his success and failures...

General Management
Q

Which of these early naturalists developed a system of classification of organisms that is still...

Biology
Q

The following graph shows two isotherms for a fixed mass of an ideal gas The...

Physics
Q

Question 5 Points 3 Which ordered pair indicates the location of Linda s house TY...

Geometry
Q

K Listed below are the lead concentrations in g g measured in different Ayurveda medicines...

Statistics
Q

Park service personnel are trying to increase the size of the buffalo population of a...

Algebra
Q

Question 12 of 12 Bramble Furniture incurred the following transactions for the month of March....

Accounting