Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 14.2 percent, while for MidCap it is 4.2 percent. The standard deviation is 5.2 percent for Transcomm and 19.2 percent for MidCap. Assume 35 percent of the portfolio is invested in Transcomm. X Your answer is incorrect. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation eTextbook and Media X Your answer is incorrect. 15.22 % Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decima places, e.g. 15.25%.) Portfolio standard deviation 10.59 %
Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 14.2 percent, while for MidCap it is 4.2 percent. The standard deviation is 5.2 percent for Transcomm and 19.2 percent for MidCap. Assume 35 percent of the portfolio is invested in Transcomm. X Your answer is incorrect. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation eTextbook and Media X Your answer is incorrect. 15.22 % Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decima places, e.g. 15.25%.) Portfolio standard deviation 10.59 %
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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Question
am. 115.
Transcribed Image Text:Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 14.2 percent, while for
MidCap it is 4.2 percent. The standard deviation is 5.2 percent for Transcomm and 19.2 percent for MidCap. Assume 35 percent of
the portfolio is invested in Transcomm.
* Your answer is incorrect.
Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6
decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.)
Portfolio standard deviation
eTextbook and Media
X Your answer is incorrect.
15.22 %
Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6
decimal places, e.g. 0.251254 and the final answer to 2 decima places, e.g. 15.25%.)
Portfolio standard deviation
10.59 %
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