PLEASE HELP IM SO CONFUSED ON HOW TO DO THIS. Thanks if you can help. :P

Mathematics

1 answer:

statuscvo [17]3 years ago

8 0

Answer for your question

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Stock A ‘s returns have a standard deviation of 0.5, and stock B’s returns have standard deviation of 0.6.The correlation coeffi

galben [10]

Answer:

The variance of the profile is 0.2179.

Step-by-step explanation:

We are given the following in the question:

$\sigma_A = 0.5\\\sigma_B = 0.6\\\rho_{A,B} = 0.5\\w_A = 70\% = 0.7\\w_B = 30\% = 0.3$

Variance of portfolio is given by:

$w_A^2\sigma_A^2 +w_B^2\sigma_B^2 + 2w_Aw_BCov_{A,B}$

$Cov_{A,B} = \rho_{A,B} \times \sigma_A \times \sigma_B \\=0.5\times 0.5 \times 0.6\\=0.15$

Putting values, we get,

$w_A^2\sigma_A^2 +w_B^2\sigma_B^2 + 2w_Aw_BCov_{A,B}\\=(0.7)^2(0.5)^2 + (.3)^2(0.6)^2 + 2(0.7)(0.3)(0.15)\\=0.2179$

Thus, the variance of the profile is 0.2179.

4 0

3 years ago

A table is on sale for 464 , which is 36% less than the regular price.

viva [34]

The original price was 725.
Explanation:
"36% less than" means taking 36% away from 100%. 100-36 is 64, so 64% remains when 36% is taken away. So, 64% of the original table's price is 464.
So, if the original price was x, 464=0.64x
Solve this by dividing both sides by 0,64:
725=x
So, the original price was 725.

3 0

3 years ago

On a piece of paper, graph y<-2/5x+1 then determine which answer choice matches the graph you drew

Andreyy89

Can take a picture of the graph

6 0

2 years ago

What property is d • e • 0 = 0

ycow [4]

Answer:

Zero Product Property

Step-by-step explanation: