If you equally invest your money in a and b to form a, Finance Basics

+44 141 628 6080
[email protected]

If you equally invest your money in a and b to form a

State	Probability	A Return	B Return
Boom	.20	18%	-7%
Normal	.50	10%	6%
Bust	.30	5%	12%

Besides, Stock A has a beta of 0.8 and stock B has a beta of 1.7

A. What are the expected rates of return for stocks A and B?

B. What are the standard deviations for A and B

C. What are the coefficients of variation for A and B? Which stock is more risky? Why?

D. If you equally invest your money in A and B to form a portfolio, what would be your portfolio's expected rate of return? What would be your portfolio's beta?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: If you equally invest your money in a and b to form a

Reference No:- TGS0603821

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : A perfect inductor with l 02 h is connected in series to a

A perfect inductor with L = 0.2 H is connected in series to a voltage source with: v(t) = 10cos(40pi(t) 20degrees). What is the reactance of the inductor

Q : A stock is selling today for 20 per share at the end of the

A stock is selling today for $20 per share. At the end of the year, it pays a dividend of $2 per share and sells for $23.

Q : 59 ida owns 30 of the stock in mockingbird a calendar

59. Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2013, is $120,000. Mockingbird has an operating loss of $500,000 in 2013 and an operating profit of $600,000 in 2014. Ida

Q : Consider a gas mixture in a 150 dm3 flask at 220 c for each

Consider a gas mixture in a 1.50 dm3 flask at 22.0 C for each of the following mixtures, calculate the partial pressure of each gas, the total pressure and the composition of the mixture in mol percent

Q : If you equally invest your money in a and b to form a

If you equally invest your money in A and B to form a portfolio, what would be your portfolio's expected rate of return? What would be your portfolio's beta?

Q : For the system specified by the following difference

For the system specified by the following difference equation, compute the first five samples of the response to the input given as x(n)=e^-0.4n u(n-1). The system is initially at rest. y(n)=y(n-1)-2y(n-2)+x(n)-0.8x(n-1)

Q : Calculate the amount of inventory loss from the

Calculate the amount of inventory loss from the fire.

Q : By how much does the required rate of return on the riskier

By how much does the required rate of return on the riskier stock exceed the required return on the less risky stock?

Q : How many possible trisubstituted derivatives c6h3x2y can be

How many possible trisubstituted derivatives C6H3X2Y can be obtained from the para disubstituted benzene C6H4X2?

1948690

Questions
Asked

3,689

Active Tutors

1460022

Questions
Answered

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

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: If you equally invest your money in a and b to form a

Reference No:- TGS0603821

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : A perfect inductor with l 02 h is connected in series to a

Q : A stock is selling today for 20 per share at the end of the

Q : 59 ida owns 30 of the stock in mockingbird a calendar

Q : Consider a gas mixture in a 150 dm3 flask at 220 c for each

Q : If you equally invest your money in a and b to form a

Q : For the system specified by the following difference

Q : Calculate the amount of inventory loss from the

Q : By how much does the required rate of return on the riskier

Q : How many possible trisubstituted derivatives c6h3x2y can be

Problem regarding canadian tire jumpstart annual report

Explain a significant event or series of events

Review teaching and learning with infants and toddlers

What would you need to do in order to compose a blog post

How you want to develop the ideas of your thesis statement

What was this peculiar sensation

Illustrate the sapir-worf hypothesis

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: If you equally invest your money in a and b to form a

Reference No:- TGS0603821

Recent Questions Asked Finance Basics

Q : A perfect inductor with l 02 h is connected in series to a

Q : A stock is selling today for 20 per share at the end of the

Q : 59 ida owns 30 of the stock in mockingbird a calendar

Q : Consider a gas mixture in a 150 dm3 flask at 220 c for each

Q : If you equally invest your money in a and b to form a

Q : For the system specified by the following difference

Q : Calculate the amount of inventory loss from the

Q : By how much does the required rate of return on the riskier

Q : How many possible trisubstituted derivatives c6h3x2y can be

Asked Questions