The variance of BMI, Inc. is estimated to be 0.0158 while the variance of QBU, Inc. is estimated to be 0.0259. The covariance between BMI and QBU is estimated to be 0.0025. What is the variance of a two stock portfolio if 0.35 of your money is placed in BIMI, and 0.65 of your money is placed in QBU. Portfolio Variance =________ Submit your answer using at least four decimal places of accuracy and work your analysis using at least 4 decimal places of accuracy. Place your answer as a decimal and not as a percentage (for example, as 1111 and not as 11.11%).
The variance of BMI, Inc. is estimated to be 0.0158 while the variance of QBU, Inc. is estimated to be 0.0259. The covariance between BMI and QBU is estimated to be 0.0025. What is the variance of a two stock portfolio if 0.35 of your money is placed in BIMI, and 0.65 of your money is placed in QBU. Portfolio Variance =________ Submit your answer using at least four decimal places of accuracy and work your analysis using at least 4 decimal places of accuracy. Place your answer as a decimal and not as a percentage (for example, as 1111 and not as 11.11%).
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 variance of BMI, Inc. is estimated to be 0.0158 while the variance of QBU, Inc. is estimated to be 0.0259. The covariance between BMI and QBU is estimated to be 0.0025.
What is the variance of a two stock portfolio if 0.35 of your money is placed in BIMI, and 0.65 of your money is placed in QBU.
Portfolio Variance =________
Submit your answer using at least four decimal places of accuracy and work your analysis using at least 4 decimal places of accuracy. Place your answer as a decimal and not as a percentage (for example, as 1111 and not as 11.11%).
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