Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. stock a has an expected return of 8% with a standa

Stock A has an expected return of 8% with a standard deviation of 20% and...

60.1K

Verified Solution

Question

Finance

image

Stock A has an expected return of 8% with a standard deviation of 20% and Stock B has an expected return of 1296 with a standard deviation of 40%. Correlation coefficient between the two stocks is 0.8 and the risk-free rate is 29. Consider a portfolio investing 80% in Stock A and 20% in stock B. What is the expected return of the portfolio? QUESTION 11 Stock A has an expected return of 896 with a standard deviation of 20% and Stock B has an expected return of 1296 with a standard deviation of 40%. Correlation coefficient between the two stocks is 0.8 and the risk-free rate is 296. Consider a portfolio investing 30% in Stock A and 70% in stock B. What is the variance of the portfolio? QUESTION 12 Stock A has an expected return of 8% with a standard deviation of 20% and Stock B has an expected return of 12% with a standard deviation of 40%. Correlation coefficient between the two stocks is 0.8 and the risk-free rate is 2%. Consider a portfolio investing 30% in Stock A and 70% in stock B. What is the Sharpe ratio of the portfolio

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

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types...

Statistics
Q

Will resulting solution be acidic or basic when combined with pure water? NaCl NaOBr C2H5NH3NO3 LiHSO3 NH4ClO2 FeCl3 K2CO3 PLEASE SHOW ALL WORK

Chemistry
Q

Critically assess the business environment and ethics present in an existing a local non-profit environment protection organisation

General Management
Q

Question 1 The Kingsmill Furniture Company sells its products, offering 30 days’ credit to its customers. Uncollectible...

Accounting
Q

Part A Identify the structure found within the circle labeled B

Biology
Q

By the late Cenozoic Pliocene grasslands represented a very small proportion of habitat True False

Biology
Q

B 50 Need Help Submit Answer 0 06 0 12 Points X T X Read...

Calculus
Q

5 Select the correct answer from each drop down menu The asymptote of the function...

Algebra
Q

If inflation is expected to increase significantly, cautious bondholders should A) buy long-term bonds today....

Accounting
Q

Question 11 3 pts If a firm has a high current ratio and a low...

Finance
Q

6 Exercise 8-16 Disposal of assets LO P2 Diaz Company owns a machine that cout...

Finance
Q

The following data pertain to April operations for Josephson Company: Beginning inventory 3,000 Units sold...

Accounting