Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you observe the stock returns on two publicly-trad

You observe the stock returns on two publicly-traded commercial banks, Chase MadHattan (CMH) and Spitigroup (S)....

80.2K

Verified Solution

Question

Finance

You observe the stock returns on two publicly-traded commercialbanks, Chase MadHattan (CMH) and Spitigroup (S). Their historicalreturns for the past three years are:

CMH: -30%, -45%,   15%;

S: -20%,   -30%,   5%.

Consider a portfolio that consists of 40% of CMH and 60% of S.Calculate the standard deviation of this portfolio. Answer as apercentage with two decimal places, as in 1.23%.

Answer & Explanation Solved by verified expert
3.8 Ratings (364 Votes)
ALL SIMPLE    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

You observe the stock returns on two publicly-traded commercialbanks, Chase MadHattan (CMH) and Spitigroup (S). Their historicalreturns for the past three years are:CMH: -30%, -45%,   15%;S: -20%,   -30%,   5%.Consider a portfolio that consists of 40% of CMH and 60% of S.Calculate the standard deviation of this portfolio. Answer as apercentage with two decimal places, as in 1.23%.

Other questions asked by students

Q

On capital budgeting area, discuss why do managers focus on the impact that an investment will...

Finance
Q

Westerville Company reported the following results from last year’s operations: Sales $ 2,300,000 Variable expenses 670,000 Contribution margin 1,630,000 Fixed expenses 1,170,000 Net operating income $ 460,000 Average operating assets $ 1,437,500 At the beginning of...

Accounting
Q

2 SO3 (g) → 2 SO2 (g) + O2 (g) A sample of 2.0 mole...

Chemistry
Q

In the worst-case scenario, you've got an elevator with a mass 2420 kg moving a speed...

Physics
Q

When you do a Bradford Assay and create a standard curve of absorbance at 595...

Biology
Q

Calculate the nuclear diameter of Express your answer to two significant figures and include the...

Physics
Q

Compute the mean, range, and standard deviation for the data items in each of the...

Basic Math
Q

2 A survey was conducted to determine how people feel about the quality of sports...

Statistics
Q

MC Qu. 52 Based on predicted production of ... Based on predicted production of 27,000...

Accounting
Q

Beatless Corp, plans to sell 200,000 units of Let-It-Be product in July and anticipate a...

Accounting
Q

Are there ethical or legal implications for writing-off and or deleting an invoice?

Accounting
Q

At December 31, 2020, Kingbird Corporation has the following account balances: Show how the above...

Accounting