Here are returns and standard deviations for four Investments. Standard Deviation Return (X) 3.e (X) Treasury bills Stock P Stock Q Stock R 8.5 18.0 17 37 27 23.5 Calculate the standard deviations of the following portfolios. a. 50% in Treasury bils 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.) Standard deviation b. 50% each in Q and R. assuming the shares have: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard Deviation Perfect positive correlation Perfect negative correlation No corelation
Here are returns and standard deviations for four Investments. Standard Deviation Return (X) 3.e (X) Treasury bills Stock P Stock Q Stock R 8.5 18.0 17 37 27 23.5 Calculate the standard deviations of the following portfolios. a. 50% in Treasury bils 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.) Standard deviation b. 50% each in Q and R. assuming the shares have: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard Deviation Perfect positive correlation Perfect negative correlation No corelation
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Here are returns and standard devlations for four Investments.
Standard
Return
Deviation
(X)
3.e
(X)
Treasury bills
Stock P
8.5
17
Stock Q
18.0
37
Stock R
23.5
27
Calculate the standard devlations of the following portfolios.
a. 50% In Treasury bill, 50% In stock P. (Enter your answer as a percent rounded to 2 decimal places.)
Standard deviation
b. 50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Enter your answers as a percent
rounded to 2 decimal places.)
Standard
Deviation
Perfect positive correlation
Perfect negative correlation
No correlation
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