Using the data in the following? table, and the fact that the correlation of A and...

Using the data in the following? table, and the fact that the correlation of A and B is 0.02?, calculate the volatility? (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B.

             Stock A   Stock B
2005       -12           16
2006        13           20
2007          8           7
2008         -1         -1
2009          5        -12
2010          6          15

The standard deviation of the portfolio is?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Using the data in the following table, and the fact that the correlation of A and...

Using the data in the following table, and the fact that the correlation of A and B is 0.32, calculate the volatility (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B. Stock A Stock B 2005 -4 28 2006 19 20 2007 3 8 2008 -1 -8 2009 5 -9 2010 13 30

Using the data in the following table, and the fact that the correlation of A and...

Using the data in the following table, and the fact that the correlation of A and B is 0.39, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B. Realized Returns Year Stock A Stock B 2008 −8% 27% 2009 17% 28% 2010 1% 11% 2011 −3% −2% 2012 1% −3% 2013 8% 26% The standard deviation of the portfolio is _%?

Using the mtcars dataset, answer the following questions: Fill in the following table: Variable Correlation with...

Using the mtcars dataset, answer the following questions: Fill in the following table: Variable Correlation with mpg cyl -0.85216 disp -0.84755 hp -0.77617 drat 0.681172 wt -0.86766 qsec 0.418684 vs 0.664039 am 0.599832 gear 0.480285 carb -0.55093 mpg cyl disp hp drat wt qsec vs am gear carb Mazda RX4 21 6 160 110 3.9 2.62 16.46 0 1 4 4 Mazda RX4 Wag 21 6 160 110 3.9 2.875 17.02 0 1 4 4 Datsun 710 22.8 4 108...

Give an example of a RANGE partition for a fact table of a data warehouse and...

Give an example of a RANGE partition for a fact table of a data warehouse and its major advantage.

Can I have a made up data table and graph illustrating correlation and another data table...

Can I have a made up data table and graph illustrating correlation and another data table and graph illustrating regression using the similar variables? I would like to know how they differ from one another using a similar topic. Growth of birds vs food supply

For the following sample, display the data using a frequency distribution table and then using a...

For the following sample, display the data using a frequency distribution table and then using a histogram . Assume the data is continuous and measured on a ratio scale. 23 21 18 17 17 15 20 3 4 28 16 15 15 15 27 2 3 15 16 16 a) How would you describe the shape of the distribution? b) Which is the most appropriate measure of central tendency? c) Calculate the most appropriate measure of central tendency.

Conduct a Pearson correlation coefficient test (r) using the following data: A researcher is interested in...

Conduct a Pearson correlation coefficient test (r) using the following data: A researcher is interested in studying the relationship between team fandom and social perception. She asks participants how much they love the Los Angeles Dodgers and then asks another participant in the same study how cool they think that person is. The data is as follows, and is on an 11-point scale: Participant Fandom Perception A 10 11 B 1 1 C 9 10 D 10 10 E 5...

The correlation coefficient between two assets 1 and 2 is +0.30, and other data are given in the following table:

The correlation coefficient between two assets 1 and 2 is +0.30, and other data are given in the following table:AssetE(r)σ 110%15%225%20%(Show your answers in decimal form. Keep 4 decimal places to all your answers except for (4), e.g. 0.1234)a) If one invests 40% in asset 1 and 60% in asset 2, what are the portfolio's expected rate of return and standard deviation? Expected rate of return: _0.1900_ Standard deviation: _0.1494_b) Find the proportion α of asset 1 and (1 -...

2. Given the following data determine a. the correlation coefficient b. The straight-line equation using the...

2. Given the following data determine a. the correlation coefficient b. The straight-line equation using the least square method c. Find the standard error. X= 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Y=2.5, 4.8, 6.5, 7.9, 9.7, 11.1, 12.7, 14.7, 16, 17.4.

Use the data values in the table below to calculate the correlation, r, between the variables...

Use the data values in the table below to calculate the correlation, r, between the variables x and y. x y 4 12.32 5 13.1 6 16.68 7 20.26 8 22.44 9 22.72 10 23.4 11 26.98 12 28.66 Give your answer to rounded three decimal places.

Subjects