Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Suppose you plan to create a portfolio with two securities: A and B. A has an expected return of 35% with a standard deviation of 22%. B has an expected return of 20% with a standard deviation of 9%. The correlation between the returns of these two securities is perfectly negative. What percentage of your investment should be in A to make the portfolio risk free? What would be the expected return on the portfolio?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927372

Have any Question? 


Related Questions in Basic Finance

Assignment -part a-the project involves writing a

Assignment - Part A- The project involves writing a commentary on Warren E. Buffett's Berkshire shareholder letter. The project is to be completed individually. Shareholder letters (1977 - 2014) will be randomly selected ...

Why is it important to understand whether the data is

Why is it important to understand whether the data is discrete or continuous? Why is it "important to understand which type of data you are dealing with in each situation"? Is continuous data considered "categorical" dat ...

Assume the following informationyour portfoliothe

Assume the following information: Your Portfolio The Market Expected return 15% Expected return 14% Standard deviation 20% Standard deviation 12% Beta 1.3 Beta 1.0 If the risk-free rate is 5%, calculate and compare the S ...

Fed response to fiscal policy explain how the feds monetary

Fed Response to Fiscal Policy: Explain how the Fed's monetary policy could depend on the fiscal policy that is implemented.

Given the following information calculate the current value

Given the following information, calculate the current value of the stock: current dividend is $3.00, projected super normal growth for three years at 20%, growth rate after year 3 should remain constant at 11% and you w ...

What is the future value of 100 a month for 48 years at 8

What is the future value of $100 a month for 48 years at 8 percent interest? Assume monthly compounding. What is the future value of $100 a month for 41 years, beginning today at 8 percent interest? Assume monthly compou ...

Explain the changes in m1 and m2 if an individual moves

Explain the changes in M1 and M2, if an individual moves money from a small denomination time deposit to a demand deposit account?

Discuss or define briefly the following terms and

Discuss or define briefly the following terms and concepts: means of payment, store of value, unit of account, barter, monetary aggregates, liquidity, nonfinancial debt, electronic funds transfer system, and risk.

Discuss why financial markets are important to a healthy

Discuss why financial markets are important to a healthy economy and how they contribute to economic growth. Question two: assume that you recently graduated with a degree in finance and have just reported to work as an ...

Financial statement analysisthe following information

Financial Statement Analysis The following information relates to Harris Corporation. Account Current year Prior year Net sales (all credit) $520,125 $499,500 Cost of goods sold $375,960 $353,600 Gross profit $144,165 $1 ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate