Probability Share A Share B Market Boom 30% 15% 25% 16% ...
90.2K
Verified Solution
Link Copied!
Question
Finance
| Probability | Share A | Share B | Market | |
| Boom | 30% | 15% | 25% | 16% |
| Normal | 50% | 10% | 20% | 13% |
| Recession | 20% | 2% | 1% | 7% |
You are given the following information on shares A and B. Using the information provided, answer the questions that follow:
- 4.1. Which share (A or B) is riskier? Provide calculations to support your answer. (9)
- 4.2. Using relevant calculations, prove that the correlation coefficient of shares A and B is
0.97.
(4)
4.3. Calculate the level of systematic and unsystematic risk in Share A.
(5)
4.4. If you choose to form a portfolio by investing 70% in Share A, and 30% in share B, calculate the standard deviation of the portfolio.
(3)
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.