(Answered) Hyacinth macaw invests 54 of her funds in stock i and the

Finance

Hyacinth Macaw invests 54% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 15%, and on J it is 28%.

a. Calculate the variance of portfolio returns, assuming the correlation between the returns is 1.0. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Portfolio variance

b. Calculate the variance of portfolio returns, assuming the correlation is 0.4. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Portfolio variance

c. Calculate the variance of portfolio returns, assuming the correlation is 0. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9884578
Price:- $30

Verified Expert

Priced at $60 Now at $30, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Dom grady just won the lottery and will receive annuity

Dom Grady just won the lottery and will receive annuity payments of $15,000 for each of the next 20 years, starting today (January 1, 2017). What is the present value of the annuity payments as of today, assuming a 8% in ...

Choose an industry and consider what and how it can hedge

Choose an industry, and consider what and how it can hedge in its favor. Introduce the industry, and state what it might hedge, and why. Explain what you would do if put in charge of the decision to hedge or not.

A young couple decide to take advantage the current

A young couple decide to take advantage the current first-time home buyer credit and buy a new house. With their combined income, they can afford to make a maximum of $800 monthly payment. With their credit history, they ...

Please show all workkanab co and zion co are us companies

Please Show All Work Kanab Co. and Zion Co. are U.S. companies that engage in much business within the U.S. and are about the same size. They both conduct some international business as well. Kanab Co. has a subsidiary i ...

A what is meant by private company the features of private

a) What is meant by private company? the features of private company. b) What is Insurance id a kind of investment. c) What is memorandum of association?

Banking and finance research project -this project will

Banking and Finance Research Project - This project will further your understanding of how financial markets function. The assignment consists of two parts. Part A of the assignment focuses on the financial instruments o ...

Many people have a hard time differentiating the

Many people have a hard time differentiating the relationships in Project, Program, Portfolio, and Operations Management when it comes to managing projects. Why do you think this is the case? What can be done to help peo ...

Rippards has a debt ratio of 15 a total asset turnover

Rippard's has a debt ratio of 15%, a total asset turnover ratio of 3.0 and a return on equity (ROE) of 48%. Compute Rippard's net profit margin.

Questions -q1 openseas inc is evaluating the purchase of a

Questions - Q1. OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship could cost $499 million, but would operate for 2020 years. OpenSeas expects annual cash flows from operating the ship to be $ 68.7 ...

Net income is 300 million depreciation is 70 million

Net income is 300 million, depreciation is 70 million, capital expenditures are 120 million, investment in working capital is 30 million, interest expenses (before tax) are 40 million, and outstanding debt is 850 million ...

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

Recent Questions

Ask Basic Finance Expert