Solved: What is the volatility standard deviation of a portfolio, Basic Statistics

+44 141 628 6080
[email protected]

What is the volatility standard deviation of a portfolio

Problem: Consider an economy with two types of firms, S and I. S firms all move together. I firms move independently. For both types of firms, there is a 60% probability that the firms will have 15% return and a 40% probability that the firms will have a -10% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 20

a. Type S firms?

b. Type I firms?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the volatility standard deviation of a portfolio

Reference No:- TGS01739893

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Basic Statistics

Q : Why use pert or cpm to plan the project

Assume you are going to manage a large construction project involving many subcontractors. Why use PERT or CPM to plan the project rather than just logically scheduling the subcontractors?

Q : Calculate the cost of capital for the two firms

1) If the risk-free rate is 6% and the equity risk premium is 5%, calculate the cost of capital for the two firms and the combined firm. 2) Assuming the value drivers remain constant(and revenues are simply combined), what would be the value of th

Q : Margarets behavior regarding the cost information

Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain your answer.

Q : Prepare a post-closing trial balance

Using the information provided below, journalize and post the adjusting and closing entries for Chris and Mary Jane's first month of business. Prepare a post-closing trial balance.

Q : What is the volatility standard deviation of a portfolio

For both types of firms, there is a 60% probability that the firms will have 15% return and a 40% probability that the firms will have a -10% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment i

Q : What must sales be in order to have a profit

Macbeth manufactures and replicates CDs for software and music recording companies. CD solutions sells each disc for 2.50. The VC per disc is 1.00. What must sales be in order to have a profit of 7500 per month?

Q : Total amount of tax due on a property

What is the total amount of tax due on a property with an assessed value of $109,400? The property tax rate is 35.4 mills.

Q : Categorizing high-medium or low probability

State the importance of identifying risks and categorizing them as high, medium or low probability. Explain why risks associated with the critical path of the project need special attention.

Q : Profit margin and income for the next year

If sales in 1999 increase by 10% and cost of goods sol increases by 25%, would this company be able to keep all expenses the same? How would I find the profit margin and income for the next year?

1927483

Questions
Asked

3,689

Active Tutors

1428066

Questions
Answered

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

ask Question

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the volatility standard deviation of a portfolio

Reference No:- TGS01739893

Have a Question? (oR Write a Review)

Recent Questions Asked Basic Statistics

Q : Why use pert or cpm to plan the project

Q : Calculate the cost of capital for the two firms

Q : Margarets behavior regarding the cost information

Q : Prepare a post-closing trial balance

Q : What is the volatility standard deviation of a portfolio

Q : What must sales be in order to have a profit

Q : Total amount of tax due on a property

Q : Categorizing high-medium or low probability

Q : Profit margin and income for the next year

Describe one aspect of luke?acts

Describe the mehfil-e-sama in india

Compare the different understandings of chaos

Construct a response to a new religious movement

What is it about tendency to individualize christian faith

Summarize the most salient points of andrew sloane

How does that characters story relate to a personal struggle

Solution Preview :

Prepared by a verified Expert

Basic Statistics: What is the volatility standard deviation of a portfolio

Reference No:- TGS01739893

Recent Questions Asked Basic Statistics

Q : Why use pert or cpm to plan the project

Q : Calculate the cost of capital for the two firms

Q : Margarets behavior regarding the cost information

Q : Prepare a post-closing trial balance

Q : What is the volatility standard deviation of a portfolio

Q : What must sales be in order to have a profit

Q : Total amount of tax due on a property

Q : Categorizing high-medium or low probability

Q : Profit margin and income for the next year

Asked Questions