Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the standard deviation of annual returns for stock

The standard deviation of annual returns for Stock #1 is 65% and for Stock #2...

90.2K

Verified Solution

Question

Finance

The standard deviation of annual returns for Stock #1 is 65% and for Stock #2 is 55%. The correlation of Stock #1's returns to Stock #2's returns is +1. If you buy $55 worth of Stock #1, how much worth of Stock #2 must you trade in order to created a hedged portfolio of the two stocks? If you want buy Stock #2, make it a positive number and if you want to short-sell Stock #2, type a negative number. Round to the nearest dollar (but, as always, don't type the dollar sign).

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

Refer to Figure 10 Select resources Select biomass V percent of the region s energy...

Basic Math
1.2K views

7 7 7 Which of the following functions are analytic Find f z if f...

Finance
1.2K views

Stock dividend and its effect [LO18-4] Ace Products sells marked playing cards to blackjack dealers. It has...

Basic Math
1.2K views

Taylor reads that 65% of men do not wassh their hands after going to the resteroom....

Biology
1.2K views

The lack of city government and services led to the Intercity fighting Unprecedented wealth and...

Biology
1.2K views

Compare the wild type sequence 5 AGCCTAC 3 with the following sequence 5 AGGCTAC 3...

Physics
1.2K views

In a wire of cross section radius r free electrons travel with drift velocity v...

Geometry
1.2K views

graphed below 12 11 10 9 8 7 6 5 4 3 4 5 12...

Calculus
1.2K views

Find the leading coefficient of the following polynomial 7 2x 3x x

Calculus
1.2K views

onsider an object moving along a line with the following velocity and initial position v...

Algebra
1.2K views

The range of a projectile fired at an angle ? with the horizontal and with...

Accounting
1.2K views

Dole Carpet Cleaners ended its first month of operations on June 30. Monthly financial statements...