Question 5 1 pts Consider the following returns: Stock X Stock Z Year End Stock Y Realized Return Realized Return Realized Return 2004 0.2% 20.1% -14.6% 2005 72.7% -3.2% 4.3% 2006 -27.0% -25.7% -58.1% 2007 56.9% 27.9% 71.1% -5.1% 2008 17.3% 6.7% 2009 -11.3% 17.9% 0.9% The variance on a portfolio that is made up of equal investments in Stock X and Stock Z is closest to: 0.62 0.05 0.12 0.06
Question 5 1 pts Consider the following returns: Stock X Stock Z Year End Stock Y Realized Return Realized Return Realized Return 2004 0.2% 20.1% -14.6% 2005 72.7% -3.2% 4.3% 2006 -27.0% -25.7% -58.1% 2007 56.9% 27.9% 71.1% -5.1% 2008 17.3% 6.7% 2009 -11.3% 17.9% 0.9% The variance on a portfolio that is made up of equal investments in Stock X and Stock Z is closest to: 0.62 0.05 0.12 0.06
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
Related questions
Question
100%
How do I calculate the variance of the portfolio as shown in the image?

Transcribed Image Text:Question 5
1 pts
Consider the following returns:
Stock X
Stock Z
Year End
Stock Y Realized Return
Realized Return
Realized Return
2004
0.2%
20.1%
-14.6%
2005
72.7%
-3.2%
4.3%
2006
-27.0%
-25.7%
-58.1%
2007
56.9%
27.9%
71.1%
-5.1%
2008
17.3%
6.7%
2009
-11.3%
17.9%
0.9%
The variance on a portfolio that is made up of equal investments in Stock X and Stock Z is closest to:
0.62
0.05
0.12
0.06
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education