Consider two stocks. Stock A has a standard deviation of 46% and stock B has a standard deviation of 52%. The stocks have a correlation of 0.78. You plan to invest $7,607 into stock A and $6,081 into stock B. What is the standard deviation of your two stock portfolio? (round weights to 3 decimal places and final answer to 2 decimal places).
weight of stock A w1= 7607/(7607+6081)
= 0.556
weight of stock B w2=0.444
standard deviation of portfolio = sqrt(w1^2 * s1^2 + w2^2 * s2^2 + 2 * w1 * w2 * s1 * s2 * corr)
= sqrt(0.556^2 * 0.46^2 + 0.444^2 * 0.52^2 + 2*0.556 * 0.444 *0.46 * 0.52 * 0.78)
= 45.92%
Consider two stocks. Stock A has a standard deviation of 46% and stock B has a...
Consider two stocks. Stock A has a standard deviation of 56% and stock B has a standard deviation of 37%. The stocks have a correlation of -0.05. You plan to invest $6,113 into stock A and $6,720 into stock B. What is the standard deviation of your two stock portfolio? (round weights to 3 decimal places and final answer to 2 decimal places).
Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 36 percent, and Stock I, an international company, with an expected return of 6 percent and a standard deviation of 16 percent. The correlation between the two stocks is –0.01. What are the expected return and standard deviation of the minimum variance portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected Return? Standard deviation?
You are creating a portfolio of two stocks. The first one has a standard deviation of 21% and the second one has a standard deviation of 35%. The correlation coefficient between the returns of the two is 0.1. You will invest 40% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal places (e.g., 4.32%=4.32).
You are creating a portfolio of two stocks. The first one has a standard deviation of 29% and the second one has a standard deviation of 39%. The correlation coefficient between the returns of the two is 0.4. You will invest 47% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal places (e.g., 4.32%=4.32).
Consider a portfolio that contains two stocks. Stock "A" has an expected return of 10% and a standard deviation of 20%. Stock "B" has an expected return of -10% and a standard deviation of 25%. The proportion of your wealth invested in stock "A" is 60%. The correlation between the two stocks is 0. What is the expected return of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response...
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common stock Correlation coefficient (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information abou the common stock of Firm A and Firm B: a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is _________. Please show all work.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 20%, while stock B has a standard deviation of return of 26%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .035, the correlation coefficient between the returns on A and B is _________.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 10% of the portfolio, while stock B comprises 90% of the portfolio. The standard deviation of the return on this portfolio is closest to: A. 13.9% B. 7.4% C. 19.2% D. 15.4%
(Computing the standard deviation for a portfolio of two nisky investments, Mary Guilt recently graduated from Nichols State University and is acous to begin investing her mengering a way of applying what she has leamed in business School Specifically, shevang e ment in a portfolio comprised of two ms' common stock. She has collected the following information about the common stock of F A and F H a. If Mary invests all her money in each of the two common...