You put half of your money in a stock that has an expected return of 14%...

You put half of your money in a stock that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a bond that has an expected return of 6% and a standard deviation of 12%. The stock and bond have a correlation of .55. What is the variance of your portfolio? Enter your answer as a decimal, rounded to four decimal places.

B)You are forming a Capital Allocation Line (CAL) using the risk-free asset with a 4% return and the portfolio described in the previous question. What is the slope of the CAL? Round your answer to two decimal places.

Expert Solution

jeff jeffy answered 2 years ago

You put half of your money in a stock portfolio that has an expected return of...

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 23%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 11.3%. The stock and bond portfolios have a correlation of 0.42. What is the standard deviation of the resulting portfolio?

You put 60% of your money in a stock portfolio that has an expected return of...

You put 60% of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 26%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 11%. The stock and bond portfolios have a correlation of 0.36. The standard deviation of the resulting portfolio is %. Please enter your answer with TWO decimal points.

You put 70% of your money in a stock portfolio that has an expected return of...

You put 70% of your money in a stock portfolio that has an expected return of 14.75% and a standard deviation of 28%. You put the rest of you money in a risky bond portfolio that has an expected return of 4.25% and a standard deviation of 15%. The stock and bond portfolio have a correlation 0.35. a. Assume the risk–free rate is 2.00%. What is the stock weight in the tangency portfolio formed by creating the optimal risky portfolio...

You have $67000. You put 25% of your money in a stock with an expected return...

You have $67000. You put 25% of your money in a stock with an expected return of 12 %, $36000 in a stock with an expected return of 17%, and the rest in a stock with an expected return of 19%. What is the expected return of your portfolio? The expected return of your portfolio is __%.

A stock offers an expected dividend of $3.50, has a required return of 14%, and has...

A stock offers an expected dividend of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00 and shows no tendency to change. 1. How can you explain this price based on the constant growth dividend discount model? 2. Compare valuing common stock and preferred stock.

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Question 26 Your firm has an expected stock return of 10%, an expected return on its...

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Question 1 Your stock has a β = 1.53, the expected return on the stock market...

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A stock has an expected return of 0.08, its beta is 1.5, and the expected return...

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A stock has an expected return of 0.13, its beta is 1.44, and the expected return...

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