Mathematics, 06.06.2020 21:58 gabriellabadon2
An investor holding a portfolio consisting of two stocks invests25% of assets in Stock Aand 75%into Stock B. The return RA from StockAhas a mean of 4%and a standard deviation of sA ¼ 8%. Stock B has an expected return E(RB) ¼ 8% with a standard deviation of sB ¼ 12%. The portfolio return is P = 0:25RA + 0:75RB. A) Compute the expected return on the portfolio. B) Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are perfectly positively correlated. C) Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns have a correlation of 0.5. D) Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are uncorrelated.
Answers: 1
Mathematics, 22.06.2019 04:50, softballlover487
Arectangle has a perimeter of 20 cm. the length, x cm, of one side of this rectangle is uniformly distributed between 1 cm and 7 cm. find the probability that the length of the longer side of the rectangle is more than 6 cm long.
Answers: 3
Mathematics, 22.06.2019 05:20, iPlayOften3722
Ted and meg have each drawn a line on the scatter plot shown below: the graph shows numbers from 0 to 10 on x and y axes at increments of 1. dots are made at the ordered pairs 1, 8 and 2, 7.5 and 3, 6 and 4, 5.5 and 4.5, 4.8 and 5, 4 and 6, 3.5 and 7, 3 and 8, 1.9 and 9, 1.2 and 10, 0. a straight line labeled line p joins the ordered pairs 0, 8.5 and 10.1, 0. a straight line labeled line r joins the ordered pairs 0, 8.5 and 7.8, 0. which line best represents the line of best fit? line p, because it is closest to most data points line p, because it shows a positive association line r, because it is closest to most data points line r, because it shows a negative association
Answers: 1
An investor holding a portfolio consisting of two stocks invests25% of assets in Stock Aand 75%into...
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