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In: Finance
Stock A has an expected return of 18% and a standard deviation of 26%. Stock B...
Stock A has an expected return of 18% and a standard deviation of 26%. Stock B has an expected return of 13% and a standard deviation of 20%. The risk-free rate is 6.7% and the correlation between Stock A and Stock B is 0.6. Build the optimal risky portfolio of Stock A and Stock B. What is the standard deviation of this portfolio?
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jeff jeffy answered 3 hours agoRelated Solutions
Stock A has an expected return of 15% and a standard deviation of 26%. Stock B...
Stock A has an expected return of 15% and a standard deviation
of 26%. Stock B has an expected return of 15% and a standard
deviation of 12%. The risk-free rate is 4% and the correlation
between Stock A and Stock B is 0.5. Build the optimal risky
portfolio of Stock A and Stock B. What is the standard deviation of
this portfolio? Round answer to 4 decimal places
Stock A has an expected return of 15% and a standard deviation of 26%. Stock B...
Stock A has an expected return of 15% and a standard deviation
of 26%. Stock B has an expected return of 15% and a standard
deviation of 12%. The risk-free rate is 4% and the correlation
between Stock A and Stock B is 0.5. Build the optimal risky
portfolio of Stock A and Stock B. What is the standard deviation of
this portfolio?
Stock A has an expected return of 18% and a standard deviation of 33%. Stock B...
Stock A has an expected return of 18% and a standard deviation
of 33%. Stock B has an expected return of 13% and a standard
deviation of 17%. The risk-free rate is 3.6% and the correlation
between Stock A and Stock B is 0.2. Build the optimal risky
portfolio of Stock A and Stock B. What is the standard deviation of
this portfolio?
Stock A has an expected return of 20% and a standard deviation of 28%. Stock B...
Stock A has an expected return of 20% and a standard deviation
of 28%. Stock B has an expected return of 14% and a standard
deviation of 13%. The risk-free rate is 6.6% and the correlation
between Stock A and Stock B is 0.2. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?
Stock A has an expected return of 17% and a standard deviation of 29%. Stock B...
Stock A has an expected return of 17% and a standard deviation
of 29%. Stock B has an expected return of 14% and a standard
deviation of 18%. The risk-free rate is 2.8% and the correlation
between Stock A and Stock B is 0.3. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?
Stock A has an expected return of 16% and a standard deviation of 31%. Stock B...
Stock A has an expected return of 16% and a standard deviation
of 31%. Stock B has an expected return of 15% and a standard
deviation of 14%. The risk-free rate is 3.2% and the correlation
between Stock A and Stock B is 0.5. Build the optimal risky
portfolio of Stock A and Stock B. What is the standard deviation of
this portfolio?
Stock A has an expected return of 5% and standard deviation of 10%. Stock B has...
Stock A has an expected return of 5% and standard deviation of
10%. Stock B has an expected return of 10% and standard deviation
of 15%. The correlation between the two stocks’ returns is
0.70. If you wanted to form a portfolio of these
two stocks and wanted that portfolio to have an expected return of
8%, what weights would you put on each stock? Show your work
(“algebra”). What would be the
standard deviation of this portfolio?
What are the expected return and standard deviation of stock A and stock B?
Consider the following information:
State Probability A
B
Boom 0.6
20% -5%
Bust 0.4
-10% 10%What are the expected return and standard deviation of stock A
and stock B?If you invest 50% of your money in stock A and 50% of your
money in stock B, what are the expected return and standard
deviation for the portfolio as a whole (considering both states of
the economy)?Use the results...
Stock X has an expected return of 11% and the standard deviation of the expected return...
Stock X has an expected return of 11% and the standard deviation
of the expected return is 12%. Stock Z has an expected return of 9%
and the standard deviation of the expected return is 18%. The
correlation between the returns of the two stocks is +0.2. These
are the only two stocks in a hypothetical world.
A.What is the expected return and the
standard deviation of a portfolio consisting of 90% Stock X and 10%
Stock Z? Will any...
PLEASE SHOW WORK Stock B has an expected return of 10% and a standard deviation of...
PLEASE SHOW WORK
Stock B has an expected return of 10% and a standard deviation
of 5%. What is the probability of earning a return between 10% and
15%? About 34%
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