1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ivenika [448]
3 years ago
11

A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%,

respectively, and the correlation between IBM and MSFT is 0.5. What is the standard deviation of the portfolio
Business
1 answer:
Masteriza [31]3 years ago
5 0

Answer:

30.51%

Explanation:

The computation of the standard deviation is shown below:

Data provided in the question

Weightage in IBM = 30% = WI

Weightage in MFST = 100 - 30% = 70% = WM

The Volatility in IBM = 35% = VI

The Volatility in MFST = 30% = VM

Correlation = 0.5 = C

Based on the above information

The standard deviation is

= \sqrt{(VI^2\times WI^2) + (VM^2 \times WM^2) + (2 \times VI \times WI \times VM \times WM \times C)}

= \sqrt{(0.35^2\times 0.30^2) + (0.35^2 \times 0.70^2) + (2 \times 0.35 \times 0.30\times 0.30 \times 0.70 \times 0.5)}

= 30.51%

You might be interested in
10. Calculate the closing percentage of the face value for a $3,000 bond with a closing price of $3,165.
erma4kov [3.2K]

Answer:

A 105.5%,

Explanation:

6 0
3 years ago
The difference in a variable measured over observations (time, customers, items, etc.) is known as
kolezko [41]
<span>The difference in a variable measured over observations (time, customers, items, etc.) is known as the variance. 
</span><span>it is the measure of variability that utilizes all the data and it is calculated by
</span><span> taking the differences between each number and the mean,. Then these differences are squared in order to be positive. At the end the sum of the squares is divided by the number of values in the set.</span>
5 0
3 years ago
The knowledge and skill that enable workers to be productive is called a) human capital b) talent capital c) human supply d) tal
Natalka [10]
Looks like the answer is A) human capital
5 0
3 years ago
Which of the following statements is NOT CORRECT? a. Sunk costs are the costs associated with "the road not taken". They represe
Ann [662]

Answer:

A

Explanation:

Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity costs are costs associated with "the road not taken".

An example of opportunity cost : you quit your job where you ern $50,000 to start your business. the opportunity cost of starting your business is $50,000 - your salary that you would be forgoing to start your business

6 0
3 years ago
When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. You sho
mixas84 [53]

Answer:

True

Explanation:

It is essential to know and ensure that the taxpayer lists all the sources of income before the Form 13614-C is being submitted. This is necessary for the calculation of the tax to be paid by the person. The taxpayer should also fill the Form 1099-INT and declare all other sources of income. The statement above is true.

7 0
3 years ago
Other questions:
  • What formula would you enter in C4 that combines A4 and B4 to
    11·1 answer
  • Manufacturing companies especially those which manufacture chemicals or use chemicals must be in compliance with construction la
    12·1 answer
  • Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $207,000 but h
    15·1 answer
  • Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of
    15·1 answer
  • Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells for $210 is now facing a new c
    9·1 answer
  • The following occurred during 20X1. A $35,000 note payable was issued. Land was purchased for $50,000. Bonds payable (maturing i
    15·1 answer
  • In the following situation, imagine you are a waiter at a restaurant. See if you can put this list of tasks in
    8·1 answer
  • A firm that is committed to keeping manufacturing facilities in only the home country (and not developing multiple production si
    13·1 answer
  • One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed overhead per
    13·1 answer
  • 1. assets for lincoln company totaled $13,000, liabilities totaled $1,000, and stockholders' equity totaled $12,000. what is the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!