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Question
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 _________.A. 23%
B. 19.76%
C. 18.45%
D. 17.67%
Answer
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Related questions
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Q:
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II. WEBS trade continuously on the AMEX.
III. WEBS are passively managed.
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Q:
The major participants who directly purchase securities in the capital markets of other countries are predominantly ____________.
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In the PRS financial risk ratings, the United States rates poorly because of the U.S. ________.
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II. Large trade deficit
III. Large amount of total debt
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Q:
The yen-per-dollar spot rate is 104. The yen-per-dollar forward rate is 107. If the U.S. risk-free rate is 2.4%, what is the likely yen risk-free rate?
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Q:
The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?
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Q:
Passive investors with well-diversified international portfolios _________.
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Q:
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Q:
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B. Europe, Australasia, Far East
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
Which one of the following will increase the value of a put option?
A.
a decrease in the exercise price
B.
a decrease in time to expiration of the put
C.
an increase in the volatility of the underlying stock
D.
Q:
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Q:
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Q:
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Q:
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Q:
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C. both buyers and sellers of futures contracts
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