Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 21%, while stock B has a standard deviation of return of 27%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is .045, the correlation coefficient between the returns on A and B is _________.

i) .707
ii) .191
iii) .212
iv) .495

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9794172
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

Five years from today you plan to invest 4900 for 8

Five years from today, you plan to invest $4,900 for 8 additional years at 7.8 percent compounded annually. How much will you have in your account 13 years from today? $13,008.88 $8,936.06 $7,133.29 $9,439.74 $9,322.51

What is the maximum dollar amount that you would be willing

What is the maximum dollar amount that you would be willing to pay for an investment that pays $10,000 every second year forever if the 1st payment occurs four years from today (the 2nd payment will occur in six years et ...

The conversion price of a 100 par convertible preferred

The conversion price of a $100 par convertible preferred stock is $25. If this convertible has a conversion value of $64 per share, What is the common stock price?

What are some key factors needed for consideration in

What are some key factors needed for consideration in choosing a business location and why is location a key finance factor for most businesses?

Michaels sets goals at the top of the organization then it

Michael's sets goals at the top of the organization. Then, it breaks down these objectives for merchandise categories and regions. When these objectives reach the buyers, each objective is personalized. What does this pr ...

What is the difference between systematic versus

What is the difference between systematic versus unsystematic risk?

Xyz stock price and dividend history are as

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End   2010 $ 122               $ 5                      2011 132               $ 5                      2012 $ 110   ...

Dia lucrii inc has 325000 shares of cumulative preferred

Dia Lucrii, Inc. has 325,000 shares of cumulative preferred stock outstanding. The stock is supposed to pay $2.18 in dividends per share each quarter. Due to an unexpected event, the company has missed the last two quart ...

Question what are the risks associated with fixed income

Question: What are the risks associated with fixed income security. What are possible scenarios that may occur to illustrate the nature of these risks. Question: What are the alternatives a company may look into to prote ...

2 part questionpart 1 what do you think is the item that

2 part question: Part 1: What do you think is the item that accounts for the most cost in any hospital's budget? Can you outline ways to keep this cost under control? Part 2: Do think it is more difficult for a manager t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As