The expected returns for Bumpy Inc.and Bouncy Inc.are 20.0% and 8.0%, respectively.The standard deviation is 35.0% for Bumpy and 16.0% for Bouncy.What is the portfolio standard deviation if 45.0% of the portfolio is in Bumpy and the two securities have perfect negative correlation?
A) 4.60%
B) 6.95%
C) 0.21%
D) 0.48%
Correct Answer:
Verified
Q62: Suppose you own a two-security portfolio.You have
Q63: Suppose you own a portfolio that has
Q64: A portfolio consists of three securities: Treachery
Q65: Indiana Jones intends to form a portfolio
Q66: Cinderella plans to form a portfolio with
Q68: Given the following forecasts, what is the
Q69: Suppose you own a two-security portfolio.You have
Q70: Suppose you plan to create a portfolio
Q71: The expected returns for Hickory Inc.and Dickory
Q72: You have observed the following quarterly returns
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents