(Answered) Question assume two investments a and b a has an expected

Finance

Question: Assume two investments; A and B. A has an expected return of 10percentage and a standard deviation of 6percentage. B has an expected return 5percentage and a standard deviation of 3percentage. Assume 25percentage share in investment A and a 75percentage share in investment B. Calculate the expected return of the portfolio. What do "Perfectly Positively Correlated" "Perfectly Negatively Correlated" "Perfectly Uncorrelated" mean (verbally and mathematically)? [This can be answered in about 2-3 sentences tops]. calculate the portfolio risk in the cases of perfectly positively correlated risks, negatively correlated risks, and uncorrelated Explain your results.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92250735
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

1 the following data are given for the allright

1. The following data are given for the Allright Corporation: Initial cost of proposed equipment $75,000 Estimated useful life ...

This morning you purchased one share of stock for 26 the

This morning, you purchased one share of stock for $26. The stock pays $.32 per share each quarter as a dividend. What must the stock price be 1 year from now if you want to earn a total return of 16 percent for the year ...

What are the effects of coupon rate to the sensitivity of a

What are the effects of coupon rate to the sensitivity of a bond price and to changes in interest rates?

You purchase an investment which will pay you 750000 in 20

You purchase an investment which will pay you $750,000 in 20 years. At a rate of 7.50%, how much must you pay for this investment today (using monthly compounding)?

Bond valuation relationshipsthe 13-year 1000 par value

(Bond valuation? relationships) The 13?-year, ?$1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ?$1,085?, and the? market's required yield to maturity on a? compa ...

Corporate finance chapter 6 6 1 how to determine the future

Corporate finance chapter 6. 6. 1. How to determine the future and present value of investments with multiple cash flows? Explain theoretically

Stock x has a beta coefficient of 20 and stock y has a beta

Stock X has a beta coefficient of 2.0 and stock Y has a beta coefficient of 1.5. The expected rate of return on an average stock is 11% and the risk-free rate is 5%. By how much does the required rate of return on the ri ...

Question - analyze and evaluate sensitivity analysis for

Question - Analyze and evaluate sensitivity analysis for different financial models, including the Yield Curve and its usefulness in predicting recessions. Did the Yield Curve from 2004 through 2007 predict the Great Rec ...

Compound yieldthe 1st three months spot yield is 2 the 2nd

Compound yield: The 1st three months spot yield is 2%; The 2nd three months spot yield is 4%; The 3rd three months spot yield is 6%; The 4th three months spot yield is 8%. Write the compound formulas for the forward yi ...

1 you have been asked to develop a capitation rate for a

1. You have been asked to develop a capitation rate for a primary care group based on the following projections: Service Annual Frequency/1,000 Cost per Service Inpatient Visits 100 $7,000.00 Office Visits 3,000 $45.00 L ...

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