Here are some historical data on the risk characteristics of Ford and Harley Davidson. Ford Harley Davidson β (beta) 1.43 0.75 Yearly standard deviation of return (%) 33.3 16.9 Assume the standard deviation of the return on the market was 12.0%. a. The correlation coefficient of Ford’s return versus Harley Davidson is 0.38. What is the standard deviation of a portfolio invested half in each share? b. What is the standard deviation of a portfolio invested one-third in Ford, one-third in Harley Davidson, and one-third in risk-free Treasury bills? c. What is the standard deviation if the portfolio is split evenly between Ford and Harley Davidson and is financed at 50% margin, that is, the investor puts up only 50% of the total amount and borrows the balance from the broker? d-1. What is the approximate standard deviation of a portfolio composed of 100 stocks with betas of 1.43 like Ford? d-2. What is the approximate standard deviation of a portfolio composed of 100 stocks with betas of 0.75 like Harley Davidson? (For all requirements, use decimals, not percent, in your calculations. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 02:00, 544620
Answer the following questions using the information below: southwestern college is planning to hold a fund raising banquet at one of the local country clubs. it has two options for the banquet: option one: crestview country club a. fixed rental cost of $1,000 b. $12 per person for food option two: tallgrass country club a. fixed rental cost of $3,000 b. $8.00 per person for food southwestern college has budgeted $1,800 for administrative and marketing expenses. it plans to hire a band which will cost another $800. tickets are expected to be $30 per person. local business supporters will donate any other items required for the event. which option has the lowest breakeven point?
Answers: 1
Business, 22.06.2019 04:10, KadaLearns
Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?
Answers: 1
Business, 22.06.2019 11:00, andregijoe41
Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?
Answers: 1
Business, 22.06.2019 16:10, safiyyahrahman6907
From what part of income should someone take savings?
Answers: 2
You know the right answer?
Here are some historical data on the risk characteristics of Ford and Harley Davidson. Ford Harley D...
Questions in other subjects:
History, 10.03.2020 08:30
Mathematics, 10.03.2020 08:30
