Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an investor is given the two investment alternativ

An investor is given the two investment alternatives (Assets A and B) with the following...

80.2K

Verified Solution

Question

Finance

An investor is given the two investment alternatives (Assets A and B) with the following characteristics:

Asset Expected Return Standard Deviation of Returns

A 18.4 percent 16.5 percent

B 10.8 percent 6.8 percent

What is the standard deviation of a portfolio comprised of 60 percent of an investor's wealth invested in Asset A and 40 percent invested in Asset B if the correlation between the returns of A and Asset B are 0.70?

9.9 percent

12.0 percent

13.1 percent

10.9 percent

11.3 percent

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of...

Finance
1.2K views

Rust Pipe Co. was established in 1994. Four years later the company went public. At that...

Psychology
1.2K views

Read this excerpt from Plato's Republic and then consider this question: Glaucon argues that people will always...

Accounting
1.2K views

During the first month of its current fiscal year, Green Co. incurred repair costs of $24,000...

Physics
1.2K views

Current in an AC circuit is given by i 3 sin oot 4 cos cot...

Physics
1.2K views

maximum speed with which a person can swim in the still water He intends to...

Geometry
1.2K views

Use the appropriate trigonometric function to find the value of x in each triangle round...

Basic Math
1.2K views

Consider the standard form of the equation x/25 + y/36 = 1The value of a...

Algebra
1.2K views

Multiply and simplify 5 7 5 7

Accounting
1.2K views

should my balance sheet equal my total balance from my adjusted journal entries

Accounting
1.2K views

What are the differences between a balance sheet and an income statement? What items would...

Finance
1.2K views

Todays date is 15 June 2023. Using this information, consider the following debt securities. Official...