The expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent invested in Down Company are the following: Expected return, E(R) Standard deviation, o 3 Doors, Incorporated Correlation +1 Correlation 0 Correlation-1 110 54 Standard Deviation What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.. Down Company 2.00% 2.00% 2.00% 12% 40
The expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent invested in Down Company are the following: Expected return, E(R) Standard deviation, o 3 Doors, Incorporated Correlation +1 Correlation 0 Correlation-1 110 54 Standard Deviation What is the standard deviation if the correlation is +1? 0? -1? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.. Down Company 2.00% 2.00% 2.00% 12% 40
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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![The expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent
invested in Down Company are the following:
Expected return, E(R)
Standard deviation, o
Down
3 Doors,
Incorporated Company.
118
12%
54
40
What is the standard deviation if the correlation is +1? 0? -1?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Correlation +1
Correlation 01
Correlation-1
Standard
Deviation
2.00%
2.00%
2.00 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F354f33d6-304a-4a1e-8fea-81ade84ba1a2%2F05f6ff8a-069e-440d-900a-7e60a910bc5c%2F7d78lym_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Incorporated, and 40 percent
invested in Down Company are the following:
Expected return, E(R)
Standard deviation, o
Down
3 Doors,
Incorporated Company.
118
12%
54
40
What is the standard deviation if the correlation is +1? 0? -1?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Correlation +1
Correlation 01
Correlation-1
Standard
Deviation
2.00%
2.00%
2.00 %
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