Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock

Post by answerhappygod »

Use The Table For The Question S Below Consider The Following Expected Returns Volatilities And Correlations Stock 1
Use The Table For The Question S Below Consider The Following Expected Returns Volatilities And Correlations Stock 1 (45.07 KiB) Viewed 10 times
Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Return Deviation 14% 6% 44% 24% 23% 14% Correlation with Correlation with Correlation with Duke Energy OA. Wal-Mart and Microsoft O B. Duke Energy and Wal-Mart OC. Microsoft and Duke Energy OD. No combination will reduce risk. 1.0 - 1.0 0.0 Microsoft -1.0 Wal-Mart 0.0 1.0 0.7 0.7 1.0 Which of the following combinations of two stocks would give you the biggest reduction in risk?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply