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quester [9]
2 years ago
15

A portfolio is composed of two securities, Stock X and Stock Z. Stock X has a standard deviation of returns of 35%, while Stock

Z has a standard deviation of returns of 15%. The correlation coefficient between the returns on X and Z is .25. If Stock X comprises 40% of the portfolio, while Stock Z comprises 60% of the portfolio, what is the standard deviation of this two-risky-asset portfolio
Business
1 answer:
emmainna [20.7K]2 years ago
8 0

Answer:

Portfolio SD = 0.18439 or 18.439%

Explanation:

The standard deviation of a stock or a portfolio is the measure of the total risk contained in the stock or portfolio. Risk can be defined as the volatility of the stock returns. To calculate the standard deviation of a two stock portfolio, we use the attached formula.

If the weight of stock x is 40%, the weight of stock y will be 1 - 40% = 60%

SD = √(0.4)^2 * (0.35)^2 + (0.6)^2 * (0.15)^2 + 2 * 0.4 * 0.6 * 0.25 * 0.35 * 0.15

SD = 0.18439 or 18.439%

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_____, as a conflict management strategy, is the political equivalent of "win some, lose some" and is possible in a long-term re
Lady bird [3.3K]

Answer:

compromising

Explanation:

Compromising—when you compromise or “split the difference” in a conflict which is the political equivalent of "win some, lose some" and is possible in a long-term relationship where there is time for give-and-take exchange.

5 0
3 years ago
Discuss the four dimensions of statistical reasoning / thinking used in statistical inquiry.
Studentka2010 [4]

The four dimensions of statistical thinking, according to Wild & Pfannkuch  are an investigative cycle, styles of thinking, an interrogative cycle, and dispositions. The four dimensions are simultaneously active within the thinker and incorporate both general and specific statistical thinking tendencies. Describe the four statistical reasoning/thinking dimensions that are used in statistical investigation.

* Give and describe a concrete example of how the four-step method was applied in a managerial decision-making process. Please apply the four dimensions of statistical reasoning from Wild and Pfankuch .

* Why is having a representative sample rather than a random sample not more crucial for drawing accurate conclusions about a diverse population?

Is the due date for your task approaching? It is simple! Please fill out the order form with your instructions. All of our authors have advanced degrees in their.

Learn more about The four dimensions of statistical thinking here.

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5 0
1 year ago
Oak Tree Farms has common stock outstanding at a price of $13 a share. The total market value of the equity is $435,000. How man
vlada-n [284]

Answer:

13,384.62 shares

Explanation:

Current number of shares = $435,000 / $13

Current number of shares = 33461.53846154

Current number of shares = 33,461.54 shares

Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.

So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.

3 0
3 years ago
2020 Discuss the effect the FOMC's actions (or lack of actions) had on the following: a. The stock market as measured by the Dow
jok3333 [9.3K]

<u>Solution and Explanation:</u>

The FOMC’s actions are as follows:

1.a. The dow jones Fell by around 13% from the 23185 to the 20815 even if fed cut the rates by 100 basis points. This fall was due to the economy heading into an impending recession.

1.b. The 10 year treasury yield fell from .94% on the friday to .73% on the monday .

The 3 months treasury yield fell from .287% on the friday to .124% on the Monday.

4 0
3 years ago
In your own words, explain the usefulness of spreadsheet models.
malfutka [58]

Answer:

They're often used at many companies and businesses because instead of other formats it is very conclusive because you can clearly see the differences of all the numbers in it. They're right next to each other and they are easy to add information to. There is no need for any extra information and there is just enough evidence in everything for just the numbers.

7 0
2 years ago
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