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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?
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jeff jeffy answered 1 year agoRelated Solutions
Stock A has an expected return of 16% and a standard deviation of 30%.
Stock A has an expected return of 16% and a standard deviation
of 30%. Stock B has an expected return of 14% and a standard
deviation of 13%. The risk-free rate is 4.7% and the correlation
between Stock A and Stock B is 0.9. Build the optimal risky
portfolio of Stock A and Stock B. What is the expected return on
this portfolio?
Stock Xillow has an expected return of 16% and a standard deviation of 4%. Stock Yash...
Stock Xillow has an expected return of 16% and a standard
deviation of 4%. Stock Yash has an expected return of 12% and a
standard deviation of 3%. Assume you have constructed a portfolio
consisting of 75% weight in Stock Xillow and 25% in Stock Yash.
Furthermore assume that the stocks have a correlation coefficient
of -0.3. What is the standard deviation of the portfolio? A. Less
than 2% B. Greater than or equal to 2% and less than 2.5%...
The stock of Bruin, Inc., has an expected return of 16 percent and a standard deviation...
The stock of Bruin, Inc., has an expected return of 16 percent
and a standard
deviation of 30 percent. The stock of Wildcat Co. has an expected
return of 8
percent and a standard deviation of 14 percent. The correlation
between the two
stocks is .20.
Required:
a) What are the expected return and standard deviation of a
portfolio that is
40 percent invested in Bruin, Inc., and 60 percent invested in
Wildcat Co.?
b) What is the standard deviation...
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 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 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 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 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?
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?
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