A portfolio is composed of 80% stock and 20% bonds. The variance of stock is 170...
A portfolio is composed of 80% stock and 20% bonds. The variance of stock is 170 and the variance of bonds is 140. The covariance is 30. What is the portfolio's variance?
Select one:
a. 168
b. 101
c. 119
d. 114
Homework Answers
Hil I have got slightly different answer.But I hope it is correct. Please check and let me know for any queries
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A portfolio is composed of 80% stock and 20% bonds. The variance
of stock is 170...
Your simple stock portfolio consists of stock X and stock Y. 80% of your portfolio is...
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Your portfolio consists of 20% stock X and 80% stock Y. The standard deviations of the...
Your portfolio consists of 20% stock X and 80% stock Y. The
standard deviations of the returns on X and Y are 10% and 30%
respectively. What is the standard deviation of your portfolio if
correlation coefficient between X and Y is .5? What is the standard
deviation of your portfolio if correlation coefficient between X
and Y is -1?
Your portfolio consists of 20% stock X and 80% stock Y. The standard deviations of the returns on X and...
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A portfolio is composed of two stocks, A and B. Stock A has a standard deviation...
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15. A portfolio is composed of two stocks, A and B. Stock A has a standard...
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Problem 1: What is the variance of a portfolio with: w1 =0.2, w2
=0.8, σ12 =10, σ22 =20,
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Problem 2: a) If the stocks 1 and 2 have negative correlation
12 then their covariance σ12 is
also negative. Yes, no, uncertain. Explain. b) If stocks 1 and 2
are uncorrelated, i.e.
12=0 then their covariance is zero, Yes, no,
uncertain. Explain c) If stocks 1 and 2 have variance
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Summary statistics for returns on two stocks X and Y are listed below. Mean Variance Stock...
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Your portfolio consists of 20% stock X and 80% stock Y. The
standard deviations of the returns on X and Y are 10% and 30%
respectively. What is the standard deviation of your portfolio if
correlation coefficient between X and Y is .5? What is the standard
deviation of your portfolio if correlation coefficient between X
and Y is -1?
Your portfolio consists of 20% stock X and 80% stock Y. The standard deviations of the returns on X and...
2 Short Questions (30 points) 1. to points) Compute the variance of a portíolio composed of assets A, B, and C. The standard deviation are 2%, 6% and 10%, respectively. The weights will be 10% invested on asset A, 20% on B, and 70% on C. All the covariances are zero but the covariance between assets A and C which is 10. 2. (10 points) If the covariance between asset A and the market portfolio is equal to the variance...
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Problem 1: What is the variance of a portfolio with: w1 =0.2, w2
=0.8, σ12 =10, σ22 =20,
and σ12 =5.
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12 then their covariance σ12 is
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12=0 then their covariance is zero, Yes, no,
uncertain. Explain c) If stocks 1 and 2 have variance
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