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Supposeyoubuy10sharesofGoogleIncat$1,025each

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Supposeyoubuy10sharesofGoogleIncat$1,025each,and50sharesofMonsantoat$;107eachtobulidaportfolio.Thepossiblereturnsandtheirprobabilityofoccurringare;givenbelow.Calculatethemissingvaluesinthetable.Showthecalculationsused.;a.Computetheweights,possibleportfolioreturn,portfolioexpectedreturn,andportfolio;standarddeviationaslistedbelow.;Weights;Google;Monsanto;PossibleReturnsPossiblePortfolioReturns;ProbabilityGoogleMonsanto;10%10%15%11.7%;50%30 %;40%5%30%13.5%;ExpectedReturns18.00%23.50%;StandardDeviation12%5.5%;b.Comparethestandarddeviationoftheportfoliowiththestandarddeviationsofthetwo;stocks.Whatcausethistohappen?

 

Paper#27834 | Written in 18-Jul-2015

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