Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock
holdings in his portfolio:Stock Percentage of Portfolio Expected Return Standard DeviationArtemis 20% 8% 38%Babish 30% 14% 42%Cornell 35% 11% 45%Danforth 15% 5% 47% What is the expected return of Andre's portfolio?Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 with each of the other stocks. The market's standard deviation is around 20%, and the weighted average of the risk of the individual securities in the partially diversified portfolio of four stocks is 35%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.3 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio's standard deviation?
1 answer:
You might be interested in
Answer:
total amortization expense = $5400
so correct option is C) $5,400
Explanation:
given data
purchase price = $67,500
time period = 75 months
months = 6th
to find out
total amortization expense
solution
we get here total amortization expense that is express as
total amortization expense = ×months ...............1
put her value we get
total amortization expense = × 6
total amortization expense = $5400
so correct option is C) $5,400