What is the lowest possible portfolio risk you can achieve, Finance Basics

+44 141 628 6080
[email protected]

What is the lowest possible portfolio risk you can achieve

Problem

You want to create a portfolio of three assets: a risk-free asset, stock A, and stock B. Standard deviation of stock A's return is 0.0925 and the standard deviation of stock B's return is 0.127. If you invest equal amounts in each asset, what is the lowest possible portfolio risk you can achieve?

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What is the lowest possible portfolio risk you can achieve

Reference No:- TGS03280627

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Would the promisor be reliable for paying

Problem: If you are promised compensation by email and accept the offer by return mail, would the promisor be reliable for paying?

Q : How much more money can you earn at the end of twelve years

If you think inflation will be 1.75% per year for the next 12 years, how much more money can you earn at the end of 12 years if you invest in the stock market?

Q : What would be the expected growth rate of the dividend

What would be the expected growth rate of the dividend if you know that its price is $30, you estimate that its next dividend will be $3, and you determine?

Q : What is the expected price of stock by the end of year three

The stock Y just paid a dividend of $3.20 this morning. The stock is currently trading at $76.30. What is the expected price of this stock by the end of Year 3?

Q : What is the lowest possible portfolio risk you can achieve

If you invest equal amounts in each asset, what is the lowest possible portfolio risk you can achieve?

Q : How much is that promise worth

If you estimate that you can get 0% interest for the next 4 semesters, but 7% interest per semester, for the fifth semester, how much is that promise worth?

Q : What are all potential securities law issues

What are all potential securities law issues above case, specific and explain thoughts fully. Draw reasonable inferences from the facts,

Q : Examples of existing adaptations in the wine industry

What are some good examples of existing adaptations in the wine industry and other fields? For instance, are some bottles already compliant with new regulations

Q : What is the expected irr of the deal

Blackstone completed the leveraged buyout acquisition of Regal paying an EV/EBITDA multiple equal to 7.0x. What is the expected IRR of this deal?

1941369

Questions
Asked

3,689

Active Tutors

1433004

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Medication for postoperative nausea and vomiting

Question: Which medication for postoperative nausea and vomiting (PONV) is contraindicated for use in the pediatric population?

Child prescribed prednisone for exacerbation of asthma

Question: Which adverse reaction would the nurse monitor for in a child prescribed prednisone for exacerbation of asthma?

What if a parent of hispanc origin informs nurse of plans

Which action would the nurse perform if a parent of hispanc origin informs the nurse of plans to wean their 10-month-old child by giving anise tea

How health care reimbursement is delivered

The revenue cycle involves many steps, and each step has a critical role in how health care reimbursement is delivered.

How to improve overall health of elementary school children

According to Healthy People health indicators, which area would the nurse include to improve the overall health of elementary school children?

How would you instruct the patient to taper off clonazepam

How would you instruct the patient to taper off clonazepam? What other medication would you recommend for the patient for the treatment

How to prevent interference with an intravenous infusion

Which action would the nurse take in providing care for an 8-month-old infant restrained to prevent interference with an intravenous infusion?