Solved: Evaluate expected return-standard deviation of a portfolio, Finance Basics

+44 141 628 6080
[email protected]

Evaluate expected return-standard deviation of a portfolio

Question:

Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%.The correlation coefficient between StocksA and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Solution Preview :

Prepared by a verified Expert

Finance Basics: Evaluate expected return-standard deviation of a portfolio

Reference No:- TGS02078191

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Develop the alternatives for financing the project

Develop the following four alternatives for financing the project:

Q : How cell phone use affects patients integrity and respect

Write a five pages paper, not including reference, doubled spaced, time new roman. How cell phone use affects the patient's integrity and respect.

Q : Retirement fund investment

Assuming you can earn 12% per year on your retirement fund investment? Show your formulas and input.

Q : How you would provide professional nursing care

How you would provide professional nursing care using theory have select? Be sure to use terminology from selected nursing theory to explain your interventions.

Q : Evaluate expected return-standard deviation of a portfolio

What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Q : Summarize health problem finding on breast cancer prevention

Summarize the health problem, new findings on breast cancer prevention, and the consequences of not addressing this problem.

Q : Finance-mortgages and amortization

If this mortgage loan would be at 5 % annual interest, amortized in equal monthly P&I payments over 25 years, and the company limits these payments

Q : Why is credibility is critical to the leadership process

Explain how focusing on the future, inclusive leadership, and trust interact to influence the leadership process ?

Q : Wendy financial statements

Please help me get the following info with supporting evidence from Wendy's financial statements.

1926919

Questions
Asked

3,689

Active Tutors

1435580

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Describe psychology research methods

Question: An old adage in psychology research methods courses is that "correlation does not prove causation".

Competence and confidence when imagining or engaging

Question: Jarrett generally feels a sense of competence and confidence when imagining or engaging in communication.

Introduce the instrument you are focusing on

Introduce the instrument you're focusing on. Provide some background information about it and state why it's important in psychological assessment.

Compare independent variables, dependent variables

Problem: Compare independent variables, dependent variables, and extraneous variables.

Searching for articles relating to young people

You might be interested in searching for articles relating to young people and you are aware that this term has many related words

How level of parental involvement impact middle school

How does the level of parental involvement impact middle school students' academic performance and overall educational experience?

What helps to be more professional

What I can do. Find out what makes you different. What helps to be more professional . What can I do well? What things do people value in me?