1 answer

Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock...

Question:

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:

Stock Expected Return Standard Deviation Correlation with Duke Energy Correlation with Microsoft Correlation with Wal-Mart
Duke Energy 14% 6% 1.0 -1.0 0.0
Microsoft 44% 24% -1.0 1.0 0.7
Wal-Mart 23% 14% 0.0 0.7 1.0

The volatility of a portfolio that is equally invested in Duke Energy and Microsoft is closest to:


Answers

Portfolio volatility = woo + wino + 2 x Pomto ox ayX LUX Wom where : 0.50 0.50 Wp = weight of Duke Energy WM = weight of Micr

The volatility of a portfolio that is equally invested in Duke Energy and Microsoft is closest to 9%

.

Similar Solved Questions

1 answer
(19 write an equation for rational function with vertical asymptates at X=-Sand X=2, x-intercepts at (3,0)...
(19 write an equation for rational function with vertical asymptates at X=-Sand X=2, x-intercepts at (3,0) and (610) and y-intercetat (0,4) Type the function in factured form....
1 answer
How do you factor #9(x^2+8x+16)+12(x+4)+4#?
How do you factor #9(x^2+8x+16)+12(x+4)+4#?...
1 answer
Navajo Company's financial statements show the following. The company recently discovered that in making physical counts...
Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $52,000, and inventory on December 31, 2018, is overstated by $22,000. For Ye...
1 answer
8. Which of the following statementele mele wing statements is correct for a project with a...
8. Which of the following statementele mele wing statements is correct for a project with a positive NPV? A) IRR exceeds the cost of capital B) Accepting the project has an indeterminate effect on shareholders C) The discount rate exceeds the cost of capital. D) The profitability index equals one. 9...
1 answer
Can someone please answer this? Please write clearly and neatly, and show all work please? I...
Can someone please answer this? Please write clearly and neatly, and show all work please? I am trying to understand this material. Thanks Derive an expression for the rate of increase dVIdt of the voltage circuit. Evaluate your result at t- 0 and show that that if the capacitor continued charging s...
1 answer
8. Find the remainder when 21000000 is divided by 17.
8. Find the remainder when 21000000 is divided by 17....
1 answer
On December 1, 2018, Shamrock Company received $8,700 from Destiny, Inc. for rent of an office...
On December 1, 2018, Shamrock Company received $8,700 from Destiny, Inc. for rent of an office owned by Shamrock Company. The payment covers the period from December 1, 2018 through February 28, 2019. Shamrock Company recorded this as Deferred Rent Revenue when it was received on December 1. The adj...
1 answer
Please help me solve this. Holiday Industries manufactures a variety of custom products. The company has...
Please help me solve this. Holiday Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $970,000 in total ma...
1 answer
Then indicate, for the pro ect the maxim um cost Internal rate of return For the...
Then indicate, for the pro ect the maxim um cost Internal rate of return For the project shown in he following table,囲 of capital that the frm could have and still ind the IRR acceptable The projects IRR is 1% (Round to two decimal places) inn m cala late the internal rate Data Table (Click o...
1 answer
Question 3: Globally various prevention measures have been introduced for control of excessive alcohol use. Examples...
Question 3: Globally various prevention measures have been introduced for control of excessive alcohol use. Examples include: • Taxes • Time restrictions • Age restrictions • Restricting sponsorship from alcohol industry • Media campaigns • Fines on alcohol consumption ...
1 answer
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: Budgeted...
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: Budgeted unit sales ................... 1st Quarter 15,000, 2nd Quarter 16,000, 3rd Quarter 14,000, 4th Quarter 13,000 The company's variable selling and administrative expense per unit is $ 2.50. Fixed se...
1 answer
Western Corporation sells and issues 200 shares of its $2 par value common stock at $20...
Western Corporation sells and issues 200 shares of its $2 par value common stock at $20 per share. Show how this transaction would be recorded in the accounting equation. Show how this transaction would be recorded in the accounting equation. Some of the account names will be abbreviated. (Use paren...
1 answer
Identify what you think was the most compelling concern raised by David F Noble in his...
Identify what you think was the most compelling concern raised by David F Noble in his article (command performance: a perspective on the social and economic consequences of military enterprise) and why (2-3 sentences). Then state the argument made by David F Noble that you found least convincing an...
1 answer
Why do the public and private healthcare sectors have a lack of alignment or sharing of quality initiatives and dat...
Why do the public and private healthcare sectors have a lack of alignment or sharing of quality initiatives and data, particularly the quality reporting for hospitals required by CMS? What are possible solutions that could be implemented to benefit the public? How could health information technology...
1 answer
A newspaper published an article about a study in which researchers subjected laboratory gloves to stress....
A newspaper published an article about a study in which researchers subjected laboratory gloves to stress. Among 285 vinyl​ gloves, 67​% leaked viruses. Among 285 latex​ gloves, 13​% leaked viruses. Using the accompanying display of the technology​ results, and using a ...
1 answer
How do you simplify #7/(4k+8)-k/(k+2)#?
How do you simplify #7/(4k+8)-k/(k+2)#?...
1 answer
Consider randomly selecting a student at U of T, and let denote the event that the...
Consider randomly selecting a student at U of T, and let denote the event that the selected student has a Visa credit card and be the analogous event for a Master Card. Suppose that , and . c) What is the probability of the event that the selected student has a Visa Card but does not have a Mas...
1 answer
Aly Mander bought stock for $13.000 in 2008 and sold the stock in 2015 for $19.000...
aly Mander bought stock for $13.000 in 2008 and sold the stock in 2015 for $19.000 Sally's marginal ta at i 25%Whts waisSaya lihmy onth, sale of her mo so 900 1500 6000...
1 answer
In a small power plant, a steam at a rate of 2 kg/s and 4000 kPa...
In a small power plant, a steam at a rate of 2 kg/s and 4000 kPa enters a two stages steady-flow steam turbine. During the first stage, the steam expands in the turbine while doing work until the turbine exit pressure is 500 kPa. At that point, 10% of the steam is removed from the turbine for other ...