Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an investor is given the two investment alternativ

An investor is given the two investment alternatives (Assets A and B) with the following...

80.2K

Verified Solution

Question

Finance

An investor is given the two investment alternatives (Assets A and B) with the following characteristics:

Asset Expected Return Standard Deviation of Returns

A 18.4 percent 16.5 percent

B 10.8 percent 6.8 percent

What is the standard deviation of a portfolio comprised of 60 percent of an investor's wealth invested in Asset A and 40 percent invested in Asset B if the correlation between the returns of A and Asset B are 0.70?

9.9 percent

12.0 percent

13.1 percent

10.9 percent

11.3 percent

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

PLease using C# Without using try-catch-throw for exception handling (Ch07), display an error message (using csc or...

Programming
Q

Show the cleavages and permissible transitions of the sodium atom D1( 2P1/2 ---> 2S1/2 ) and D2...

Physics
Q

Industrial psychology. I need to write about article that Tomas Jungert wrote. (\"\"How Colleagues Can Support Each...

Psychology
Q

TOPIC: Research Memory, Attention, and Decision-Making Write on How does Emotions influence Memory, Attention, and Decision-Making Should include an...

Psychology
Q

y''+xy'+(2x^2+1)y=0 Use power series to find at least four terms of the following differential equations

Advance Math
Q

Lopez Company reported the following current-year data for its only product. The company uses a periodic...

Accounting
Q

In this graphic, two plates aresliding past each other. Whattype of boundary is this?A. a...

Biology
Q

Kirk saw the space shuttle take off from its launch pad. He heard the ignition...

Physics
Q

Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children...

Accounting
Q

Which of the following is not a potential intangible asset? internally generated brands...

Accounting
Q

Prepare the Production Departments planning budget for the month. Prepare the Production Departments...

Accounting
Q

Please help me with the parts that I got incorrect. Show your work so I...

Finance