Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have a portfolio with a standard deviation of

You have a portfolio with a standard deviation of 23% and an expected return of...

70.2K

Verified Solution

Question

Accounting

image
You have a portfolio with a standard deviation of 23% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Standard deviation of the portfolio with stock A is \%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is \%. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) A. Add A because the portfolio is less risky when A is added. B. Add B because the portfolio is less risky when B is added. C. Add either one because both portfolios are equally risky

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1045 Steel (quenched specimen) Draw a picture of what you think the microstructure would look like and...

Mechanical Engineering
Q

Write SMART objective stating what you’d like your alternative marketing to do. I have to write...

General Management
Q

Which term describes a form of asexual reproduction that involves the division of one parent...

Biology
Q

Assuming an induction motor which is working at supply frequency of 50 Hz ac supply...

Physics
Q

Find the resistance between terminals X and Y of the bridge circuit shown in Fig...

Physics
Q

A company set aside a certain amount of money in the year 2000. The company...

Basic Math
Q

What entities or business forms are available for a new enterprise? Explain the advantages and...

Accounting
Q

Bailey Company purchased supplies on accounts recording the supplies as supplies expense in the amount...

Accounting
Q

A recent conceptualization of ethical leadership that focuses on followers' perceptions of leader behaviors as...

Accounting
Q

Fairweather Manufacturing Ltd (FML) is a public company and was incorporated a number of years...

Accounting
Q

YOU MIGHT NEED TO ZOOM IN TO SEE IT MORE CLEARLY The Employer's...

Accounting
Q

2) Using the straight-line method, calculate the amount of depreciation expense for each asset and...

Accounting