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Kitty [74]
3 years ago
14

Stock A has an expected return of 14% and a standard deviation of 35%. Stock B has an expected return of 20% and a standard devi

ation of 55%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 25% in Stock A and 75% in Stock B
Business
1 answer:
Fiesta28 [93]3 years ago
6 0

Answer:

The expected return from a portfolio consisting of 25% of stock A and 75% of stock B is 18.5%

Explanation:

Return on portfolio=Return of security A *Weight of security A+Return of security B *Weight of security B  

Return of security A=14%

Return of security B=20%

Weight of security A=25%

Weight of security B=75%

Return on portfolio  =  14 % ∗  25 /100  +  20%  ∗  75 /100

Return on portfolio  =  <u>18.5 %</u>

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Answer:

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Explanation:

The term performance quality refers to the gap between product design specifications and actual performance of the product.

This ultimately implies that, a performance quality refers to a measure of the level at which the primary characteristics of a product that is being manufactured by a producer operates. Therefore, all the elements of the commitment made in a product that is to be sold to consumers by the producer is the performance quality of a product.

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3 years ago
A group of ten UIC professors each contributed an equal amount to the purchase of a State of Illinois Lottery ticket. Two of the
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Answer:

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Explanation:

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It is better to continue

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What type of research method is good at generating data about an entire population? sociology?
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