Stock A has a risk premium of 16%, a correlation of 0.56 with the market, and a beta of 0.9. Stock B has a risk premium

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

Stock A has a risk premium of 16%, a correlation of 0.56 with the market, and a beta of 0.9. Stock B has a risk premium

Post by answerhappygod »

Stock A Has A Risk Premium Of 16 A Correlation Of 0 56 With The Market And A Beta Of 0 9 Stock B Has A Risk Premium 1
Stock A Has A Risk Premium Of 16 A Correlation Of 0 56 With The Market And A Beta Of 0 9 Stock B Has A Risk Premium 1 (99.42 KiB) Viewed 46 times
Stock A has a risk premium of 16%, a correlation of 0.56 with the market, and a beta of 0.9. Stock B has a risk premium of 9.1% and a correlation of 0.23 with the market. The returns of Stock A and Stock B are uncorrelated. The volatility of the market portfolio is 14%. A portfolio is created by investing equally in Stock A and Stock B. Find the volatility of this portfolio. 0 20.95% O 19.22% 20.08% 21.81% 18.35%
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”