Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is the standard deviation of the returns on a

What is the standard deviation of the returns on a $40,000 portfolio which consists of stocks...

80.2K

Verified Solution

Question

Finance

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.

State of

Economy

Probability of

State of Economy

Returns if State Occurs
Stock CStock D
Boom20%15%4%
Normal70%9%6%
Recession10%-2%5%

Answer & Explanation Solved by verified expert
3.9 Ratings (687 Votes)
Solution Portfolios Standard deviation 00231 in decimal 231 in Working Notes First of all We calculate weight of each stock in the portfolio Weight of Stock C in portfolio Stock C value portfolio value 2200040000 055 Weight of Stock D in portfolio 1Weight of Stock C in portfolio 1 055 045 Then    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.State ofEconomyProbability ofState of EconomyReturns if State OccursStock CStock DBoom20%15%4%Normal70%9%6%Recession10%-2%5%

Other questions asked by students

Q

Data Breaches : In recent years we’ve witnessed a series ofdisastrous data breach. Research...

Accounting
Q

If csc x = 2 and x is in Q I, determine the exact values...

Basic Math
Q

A long wire carrying a 5.8 A current perpendicular to the xy-plane intersects the x-axis at...

Physics
Q

c 14 ms d 5 Two stars of masses m and my distance r apart...

Physics
Q

An electron m 9 x kg e of energy 10 v is circulating at right...

Physics
Q

Below is the five-number summary for 136 hikers who recently completed the John Muir Trail...

Basic Math
Q

Use the Theorem on Limits of Rational Functions to find the limit If necessary state...

Calculus
Q

Graph the following line Also give the a x intercept if any b y intercept...

Calculus
Q

Select whether stockholders' equity would increase, decrease, or have no effect as a result of...

Accounting
Q

You have a portfolio with the following: Stock W Number of shares 525, price 43,...

Finance
Q

3 suppose ABCD Investment, Inc., a Cleveland-based investment firm, invested $56,000 to buy 1,000 shares...

Finance
Q

Determine the beta of a portfolio consisting of equal investments in the following common stocks:...

Finance