What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B? (Please show work)

Q: Suppose Stock A has an expected return of 18% and a variance of 0.17, while Stock B has an expected…

A: Expected return of a portfolio is calculated as the sum of their weighted returns. It can be…

Q: You create a portfolio that invests 60% in stock A with E(rA) = 15%, σA = 10% and 40% in stock B…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: What is the beta of a portfolio made up of two risky assets and a risk-free asset? You invest 35% in…

A: Beta: Beta can be defined as the measure of instability of a separate stock relative to the…

Q: Suppose you have a portfolio consisting of two assets, A and B. Stock A has an expected return of…

A: Portfolio variance = w12σ12 + w22σ22 + 2w1w2Cov1,2Where:w1 = the portfolio weight of the first…

Q: A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 25%, and the…

A: A portfolio refers to investments in two or more than two financial securities or assets. For…

Q: A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance…

A: Weight of stock A (WX) = 0.50 Weight of stock B (WY) = 0.50 Covariance between stock X and stock Y…

Q: 1. Consider the table below which lists a set of portfolios with each of their expected return E(R)…

A: To create the efficient frontier, we plot the expected return (E(R)) on the y-axis and the standard…

Q: A mean - variance optimising investor forms a portfolio of a risky stock and the risk - free asset.…

A: Answer image:Allocation of Capital between Risk free assets and Optimal risky portfolio can be…

Q: Table attached shows the historical returns for Companies A, B and C If one investor has a…

A: The expected return of the stock refers to the profits that the stock provides on average. It is…

Q: Given there are two assets making up a portfolio where each asset has the following characteristics:…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: As a portfolio manager, you are required to take investment decision from the following two…

A:

Q: A portfolio is made up of share A and share B. Share A has a standard deviation of 16% and has a…

A: Rate of return of the portfolio is the average rate of return of each security comprised in the…

Q: Stock A has a standard deviation of 3.5% while stock B has a standard deviation of 4.6%. If both…

A: Standard deviation is a variation in the mean value of given data. Standard deviation is a…

Q: Consider following information on a risky portfolio, risk-free asset and the market index. What is…

A: A portfolio with all the characteristics has been provided. Capital market information are also…

Q: a. What percentage of returns were between 7 percent and 31 percent? Percentage of returns b. What…

A: The normal distribution is a statistical concept that characterizes a symmetrical probability…

Q: The market portfolio has an excess return of 8% and volatility of 15%. The risk free rate is 5%.…

A: Minimum required return (CAPM) = Rf+ [β×(Rm-Rf)]

Q: Please answer all parts (a-d) with explanations thx.

A: Expected return (ER) refers to the average returns expected to be received on a particular share or…

Q: You are investing in a portfolio consisting two shares - D and E. You plan to invest 70% of your…

A: Expected retun on a portfolio is calculated as below: It can also be calculated by calculating the…

Q: Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Company A 30% 7% 18% -22% -14% 10% 26% -10%…

A: We have to design two portfolios and then find their average return, standard deviation of return…

Q: Consider two high-risk stocks, X and Y. The expected return on stock Y is 16%, with a standard…

A: Computation of Expected Return as follows: The expected return of the portfolio =Weight of…

Q: A portfolio manager creates the following portfolio: Security Security Weight Expected Standard…

A: Standard deviation of portfolio is dependent on the weight of each security in the in the portfolio…

Q: Suppose you create a minimum-variance portfolio by combining two perfectly negatively correlated…

A: A minimum variance portfolio is the portfolio that gives lowest possible risk for a given…

Q: Asset 1 has a standard deviation of 0.10 and an expected return of 7%. Asset 2 has a standard…

A: Standard deviation of Asset 1 (sd1) = 0.10Expected return of Asset 1 (Er1) = 7%Standard deviation of…

Q: Assume that the following data available for the portfolio, calculate the expected return,variance…

A: Diversified portfolio- It refers to a portfolio of investments in which unsystematic risk or firm…

Q: Stock A has an expected return of 12 percent and a standard deviation of 14 percent. Stock B has an…

A: Honor codeAs per the Q&A guidelines, if multiple subparts are asked at once then the answer for…

Q: Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard…

A: Standard deviation is the quantitative measure of risk of stock return and is measured as the…

Q: assume that the following data available for the portfolio, calculate the expected return, variance…

A: Given: Expected return of A =12.5% Expected return of B = 18.5% Standard deviation of A = 15%…

Q: Table 1 shows the value of a portfolio consisting of security 1 and security 2. The respective…

A: Standard deviation is a statistical measurement of deviation from the expected data. It shows market…

Q: A two-stock portfolio has an expected return of 12.6%. If Asset A has an expected return of 19% and…

A: The expected return of a portfolio refers to the return the portfolio provides on average to the…

Q: Fiona constructs an investment portfolio using two common stocks, A and B. a. Suppose the weight…

A: Part A: Weight of A = 0.50 Weight of B = (1 - weight A)                     = (1 - 0.50)…

Q: A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 35%, and the…

A: A portfolio consists of two or more financial securities. The financial securities in a portfolio…

Q: answer must be correct

A:

Q: Consider two assets A and B with expected return as 9% and 5%, respectively. Standard deviation of…

A: The expected return of Portfolio is calculated with the help of following formula  Er(p) = Er (A) ×…

Q: 2. Consider two assets, S and B. The expected return on S is 12.2% while the expected return on B is…

A: Expected Return: The anticipated gain or loss from an investment, calculated as the weighted average…