Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. revision question 4 a) what is the standard deviat

REVISION QUESTION 4 a) What is the standard deviation of the returns on a stock...

50.1K

Verified Solution

Question

Finance

image

REVISION QUESTION 4 a) What is the standard deviation of the returns on a stock given the following information? State of Probability of Rate of Return Economy State of Economy if State Occurs Boom 18% 19% Normal 76% 12% Recession 6% -15% b) A portfolio beta is a weighted average of the betas of the individual securities which comprise the portfolio. However, the standard deviation is not a weighted average of the standard deviations of the individual securities which comprise the portfolio. Explain why

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

Biology
1.2K views

Primary sequence of Papain- like protease of Covid-19

Basic Math
1.2K views

Running times (Y) and maximal aerobic capacity (X) for 14 female Runners. Data collected for running times...

Accounting
1.2K views

During the year, Sloan Inc. began a project to construct new corporate headquarters. Sloan purchased land...

Basic Math
1.2K views

Using the information below to create the initial simplex matrix. Assume all variables are nonnegative.Maximize...

Statistics
1.2K views

ind the a mean b isted below are foot lengths in inches of randomly selected...

Calculus
1.2K views

Find the most general antiderivative of the function Check your answer by differentiation Use C...

Accounting
1.2K views

Holz Disc Golf Course was opened on March 1 by Colada...

Accounting
1.2K views

Click the icon to view the time series data. Develop a two-period...

Accounting
1.2K views

Minneapolis Mills has $13,000,000 of debt outstanding as of March 31, 2020. The interest rate...

Accounting
1.2K views

Four grams of fragrance are required for each bottle of Floral,...

Accounting
1.2K views

During the year, a retailer made the following inventory purchases: 210 units at $7.50 each,...

Accounting
1.2K views

1. Record the entry to adjust asset values to fair value. 2. Record the entry...