SlideShare ist ein Scribd-Unternehmen logo
1 von 1
Downloaden Sie, um offline zu lesen
an investor can design a risky portfolio based on two stocks a and b stock a has an expected
return of 15% and a standard deviation of return of 20%. stock b has an expected return of 11%
and a standard deviation of 5%. The correlation coefficient between the returns of A and B is 0.50.
The risk-free rate of return is 7%. The proportion of the optimal risky portfolio that should be
invested in stock A is __________.

Weitere ähnliche Inhalte

Mehr von adityae10

Mehr von adityae10 (20)

An auditing client applied for a bank loan from First Bank .pdf
An auditing client applied for a bank loan from First Bank .pdfAn auditing client applied for a bank loan from First Bank .pdf
An auditing client applied for a bank loan from First Bank .pdf
 
An integral protein in the membrane would have amino acid R .pdf
An integral protein in the membrane would have amino acid R .pdfAn integral protein in the membrane would have amino acid R .pdf
An integral protein in the membrane would have amino acid R .pdf
 
An inorder traversal for a subtree rooted at node p Perform.pdf
An inorder traversal for a subtree rooted at node p Perform.pdfAn inorder traversal for a subtree rooted at node p Perform.pdf
An inorder traversal for a subtree rooted at node p Perform.pdf
 
An important aspect of any research study is data collection.pdf
An important aspect of any research study is data collection.pdfAn important aspect of any research study is data collection.pdf
An important aspect of any research study is data collection.pdf
 
An inclass test of the opponent process theory of color vis.pdf
An inclass test of the opponent process theory of color vis.pdfAn inclass test of the opponent process theory of color vis.pdf
An inclass test of the opponent process theory of color vis.pdf
 
An individual has a vNM utility function over money of ux.pdf
An individual has a vNM utility function over money of ux.pdfAn individual has a vNM utility function over money of ux.pdf
An individual has a vNM utility function over money of ux.pdf
 
An event A has probability 02 An event B has probability .pdf
An event A has probability 02  An event B has probability .pdfAn event A has probability 02  An event B has probability .pdf
An event A has probability 02 An event B has probability .pdf
 
An imaging department receives paper documents they scan and.pdf
An imaging department receives paper documents they scan and.pdfAn imaging department receives paper documents they scan and.pdf
An imaging department receives paper documents they scan and.pdf
 
An exporter in a developing country sells under CIF terms t.pdf
An exporter in a developing country sells under CIF terms t.pdfAn exporter in a developing country sells under CIF terms t.pdf
An exporter in a developing country sells under CIF terms t.pdf
 
An Excel file containing quarterly cash flows for Verizon is.pdf
An Excel file containing quarterly cash flows for Verizon is.pdfAn Excel file containing quarterly cash flows for Verizon is.pdf
An Excel file containing quarterly cash flows for Verizon is.pdf
 
An extensive game has two players 1 and 2 At the start of .pdf
An extensive game has two players 1 and 2 At the start of .pdfAn extensive game has two players 1 and 2 At the start of .pdf
An extensive game has two players 1 and 2 At the start of .pdf
 
An example of an II application control ITAC that is confi.pdf
An example of an II application control ITAC that is confi.pdfAn example of an II application control ITAC that is confi.pdf
An example of an II application control ITAC that is confi.pdf
 
An Euler tour cycle of a strongly connected graph .pdf
An Euler tour cycle of a strongly connected graph     .pdfAn Euler tour cycle of a strongly connected graph     .pdf
An Euler tour cycle of a strongly connected graph .pdf
 
An environmental project requires an initial investment of .pdf
An environmental project requires an initial investment of .pdfAn environmental project requires an initial investment of .pdf
An environmental project requires an initial investment of .pdf
 
An employer agrees to pay 14900 for medical insurance and .pdf
An employer agrees to pay 14900 for medical insurance and .pdfAn employer agrees to pay 14900 for medical insurance and .pdf
An employer agrees to pay 14900 for medical insurance and .pdf
 
An environmental project requires investments of 100000 in.pdf
An environmental project requires investments of 100000 in.pdfAn environmental project requires investments of 100000 in.pdf
An environmental project requires investments of 100000 in.pdf
 
An elementary school is assessing how many activities in whi.pdf
An elementary school is assessing how many activities in whi.pdfAn elementary school is assessing how many activities in whi.pdf
An elementary school is assessing how many activities in whi.pdf
 
An antibiotic interferes with the ability of the ribosome to.pdf
An antibiotic interferes with the ability of the ribosome to.pdfAn antibiotic interferes with the ability of the ribosome to.pdf
An antibiotic interferes with the ability of the ribosome to.pdf
 
An Airbnb home has installed a combination lock with pushbut.pdf
An Airbnb home has installed a combination lock with pushbut.pdfAn Airbnb home has installed a combination lock with pushbut.pdf
An Airbnb home has installed a combination lock with pushbut.pdf
 
An economy has a consumption function of C12+07Y investme.pdf
An economy has a consumption function of C12+07Y investme.pdfAn economy has a consumption function of C12+07Y investme.pdf
An economy has a consumption function of C12+07Y investme.pdf
 

Kürzlich hochgeladen

Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
KarakKing
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
 

Kürzlich hochgeladen (20)

Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 
Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Spatium Project Simulation student brief
Spatium Project Simulation student briefSpatium Project Simulation student brief
Spatium Project Simulation student brief
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
 
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 

an investor can design a risky portfolio based on two stocks.pdf

  • 1. an investor can design a risky portfolio based on two stocks a and b stock a has an expected return of 15% and a standard deviation of return of 20%. stock b has an expected return of 11% and a standard deviation of 5%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 7%. The proportion of the optimal risky portfolio that should be invested in stock A is __________.