Suppose each stock in Andre’s portfolio has a correlation coefficient of 0.40 (rho = 0.40) with each of the other stocks. The market’s average standard deviation is approximately 20%, and the weighted average of the risk of the individual securities in the partially diversified four-stock portfolio is 39%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.30 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio’s standard deviation?

Answers

Answer 1

Answer:

Explained below.

Step-by-step explanation:

The correlation coefficient for the portfolio with each of the other stocks is 0.40.

This correlation coefficient is less than 1. This implies that the portfolio’s assets are weakly correlated with each other.  

The portfolio profits from modification. Randomly selected stocks are added to the portfolio.  

The correlation coefficient of these stocks with the other stocks in the portfolio is about 0.30.  

Therefore adding these randomly selected stocks will decrease the portfolio’s standard deviation.  

Company-specific risk in portfolio can be reduced by this diversification but systematic or market risk can’t be eliminated. Thus the risk will (σ) decrease slowly until σp reaches to the average standard deviation of returns on the market i.e. about 20 %.


Related Questions

A horse has a speed of 10 miles per hour. The horse has traveled 15 milles. How many miles in total if it rides for another hour?

Answers

Answer:

d = 24.

Step-by-step explanation:

Plzz answer fast I know what it is but I need to double check!!!!!

Answers

Answer:

it's B

Step-by-step explanation:

just solve them and they match

Answer:

If your thinking B is the answer then you are right

Turn the following fraction into a PERCENT: 15/60 ​

Answers

15/60 simplified is 1/4 so the answer is 25%
If you divide 15 and 60 it will give you .25 which is 25%

Which of the following situations can be modeled by the expression -8 + 35?

While Shawn was sleeping, the temperature decreased by 8°F. If the temperature was 35°F when Shawn went to bed, what was the temperature when Shawn woke up?

When Shawn woke up, the temperature was -8°F. By noon, the temperature had increased by 35°F. What was the temperature at noon?

None of the above.

When Shawn woke up, the temperature was -8°F. By noon, the temperature had increased to 35°F. By how much did the temperature change?

Answers

Answer:

The second one

A transversal crosses a pair of parallel lines to create a pair of same-side interior angles with the measurements of x° and (x−52)°. What is the value of x?

Answers

Answer:

x=116°

Step-by-step explanation:

If a transversal crosses a pair of parallel lines to create a pair of same-side interior angles with the measurements of x° and (x−52)°, then the sum of those angles is equal to 180°.

ATQ,

x°+(x-52)°=180°

2x=180°+52

⇒2x=232

⇒x=116°

So, the value of x is 116°

Daud can jog 4 miles in 75 minutes. What is David's jogging rate per hour?

Answers

Answer:

3 mph

Step-by-step explanation:

1 hour = 60 minutes.

4 miles/ 75 minutes = x miles / 60 minutes

240 = 75 x

x = 3.2

3.2 miles per hour

what is the area of a rectangle that is 3/4 ft wide and 1/12 ft long?

Answers

Answer:

3/8

Step-by-step explanation:

because to find the area you multiply both numbers so 1*3 is 3 and 2*4 is 8 so your answer should be 3/8

Questions
1 point
Previous
Calculate the mean of Bryanna's test scores if she has scored 75, 97, and 92 so far this
semester
A 284
o
B
88
c. 75
D

Answers

Answer:  88

Work Shown:

Add up the values

75+97+92 = 264

Then divide by 3 since there are 3 scores

264/3 = 88

You can write this all as one step

(75+97+92)/3 = 88

So in short, you add the scores and then divide by the number of scores.

3. Simplify the polynomial.
Answers must be in standard
form.
-2(4x2 + 5x) + x(x2 + 6x)

Answers

Answer:

Step-by-step explanation:

After my salary was increased by 12%, it was $62,720. What was my salary before the increase?
I'll mark brainliest!

Answers

Answer

56,000

Step-by-step explanation:

x/20=2/8
x=__
pls explain the steps

Answers

Answer:

Today: Thursday, 15 October 2020

Hour: 04.09 WIB (in Indonesian)

____________________________

x/20 = 2/8

20 × 2 = 8 × x

40 = 8x

x = 40/8

x = 5

Harry put blue and green marbles in a bag. Exactly 3/4 of the marbles in the bag are blue. Which of the following could be the total number of marbles in the bag.
A. 3
B. 6
C. 7
D. 8

Answers

Answer:

D

Step-by-step explanation:

Because when u multiply 3/4 times A,B,C it gives you a decimal, when u multiply 3/4 by 8 you get 6 a whole number.

The total number of marbles in the bag could be (d) 8

How to determine the possible total?

We have:

Blue proportion = 3/4

This means that the green proportion is

Green proportion = 1 - 3/4

Evaluate

Green proportion = 1/4

Express as ratio

Blue: Green = 3/4 : 1/4

Simplify

Blue: Green = 3 : 1

Add the ratios

Total = 3 + 1

Total = 4

The above means that the total number of marbles in the bag is a multiple of 4

i.e. 4, 8, 12, 16, 20......

Hence, the total number of marbles in the bag could be (d) 8

Read more about proportions at:

https://brainly.com/question/1781657

#SPJ9

Please help! :(
Its a line and transversal, i'm just super confused. :(

Answers

Answer:

M=112

N=180-112=68

V=E

E=180-88=92

R=G

G=88(opposite angle)

Answer:
first question is 25
next question is 12
the last question is 1/16

Answers

this is the answer to what

Answer:

what

Step-by-step explanation:

-0.2525 rational or not

Answers

Answer:

NOT

Step-by-step explanation:

Rational.

Round it...

-0.25

Turn it into a fraction...

-25/100.

It can be a fraction. Thus, it is rational.

summary of scientific notation ​

Answers

Answer:

Scientific Notation is making a huge number smaller, using exponents. A number like 800000 can be shortened with Scientific Notation. Example:

8 × [tex]10^{5}[/tex]

Step-by-step explanation:

Solve each equation.Check your solution

Answers

s=2 because i did the math

Select all of the situations below that can be modeled by the expression 4 + 3x.
Four more than three and a number.
Four more than three times a number.
The sum of three times a number and four.
The sum of the product of four three, and a number.
The sum of four and the product of three and a number.​

Answers

Answer:it’s b

Step-by-step explanation:

I just did it on ede

1. A hexagon is inscribed in a circle. If the difference between the area of the circle and the area
of the hexagon is 24 m”, use the formula for the area of a sector to approximate the radius
of the circle. Give an exact answer( doesn't have to be rationalized) and round to 2 decimals.

Answers

Answer:

The radius, r ≈ 6.55 m

Step-by-step explanation:

The given parameters are;

An inscribed hexagon in a circle

The area of the hexagon = Area of the circle - 24 m²

The formula for the area of the circle = π·r² = π × r²

The area of each of the six equilateral triangle in the hexagon = √3/4 × r²

Where;

r = The radius of the circle

The area of a sector of a circle in which the equilateral triangle is inscribed = 60/360×π·r² = 1/6×π·r² = 1/6 × Area of the circle

Given that the sector of the circle in which one of the six equilateral triangles of the hexagon is inscribed is 1/6 the area of the circle, the difference in area between the equilateral triangle and the sector = 24/6 = 4

Therefore, the difference in the area between the sector of the circle and the area of the equilateral triangle = 4 m²

We then write;  1/6×π·r²- √3/4 × r² = 4

r²·(1/6×π- √3/4) = 4

r² = 4/(1/6 ×π - √3/4) = 48/(2·π -3·√3)

r = √(48/(2·π -3·√3) = 6.55 m to 2 decimal places

The radius, r ≈ 6.55 m.

Evaluate the function for f(-9 if (x) = 3/5 x + 8

A. 67/5
B. -67/5
C. -13/5
D. 13/5

Answers

Answer:

D

Step-by-step explanation:

f(-9) = 3/5(-9) + 8 = 13/5

2=-6n+4m

how do you solve this ?

Answers

Answer:

n =3 and m = 5

Step-by-step explanation:

negative × positive = negative

So -6 × 3 = -18

4 × 5 = 20

negative + positive = positive

So -18 + 20 = 2

N=3 and i think 5 is for m i might be wrong

Audrey has already scored 53 points,and scored 22 more points with every coin she collects.How many coins does Audrey have to collect to score a total of 97 points​

Answers

Answer:

Audrey needs to collect 3 more coins.

Step-by-step explanation:

Since she already scored 53 points, we have to find out how many more points she needs to score 97.

So, 97-53=45 points.

The problem says that each coin Audrey collects is worth 22 points. Therefore, 45 divided by 22= 2 remainder 1. However, if she only collects two more coins, Audrey will only have 96 points in total, not 97.

So, add another coin to make 3.

what is 1111 * 1111?
it is my favorite math problem and 1111 is satisfying to say in chinese

Answers

Answer:

1,234,321

Step-by-step explanation:

1111 × 1111 = 1,234,321

I hope this helps!

A company that manufactures dishwashers is testing their latest product to see how long it takes to cool down once a cycle is complete. The function, f(x) = 360 - 15x, represents the cooling cycle, where x is equal to the number of minutes and f(x) is equal to the temperature of the dishwasher after x minutes.

Answers

Step-by-step explanation:

Given that the function for the temperature of the dishwasher is

f(x) = 360 - 15x

We are told that x represents the number of minutes it takes to cool down.

with a given/known value of x we can predict the temperature of the dishwasher.

Say x=12 minutes, we can tell what the temperature will be after 12 minutes

by plugin in the value of x=12 in the expressions for the temperature

f(x) = 360 - 15(12)

f(x) = 360 - 180

f(x) = 180

The temperature after 12 minutes will be 180°

PLEASE HELP ME
- The value of y varies directly with x. If x= 4,
then y= 32. What is the value of x when y= 176?

Answers

Answer: Wouldn't that make it x=44

Step-by-step explanation:

I just divided 176 by 4  because it said the value of y varies directly with x. So just used the rule they used i guess.

what is 5x10^-7 as a decimal

Answers

AnsweStep-by-step explanation:

4. Which of the following could be the areas of the three squares shown?

Answers

Answer:

Option (A)

Step-by-step explanation:

Three squares shown in the figure are formed on the sides of the given right triangle.

By Pythagoras theorem,

(Hypotenuse)² = (Leg 1)² + (Leg 2)²

Area of the square on the hypotenuse = Area of the square on the leg 1 + Area of the square on leg 2

Option (A).

95 = 40 + 55

True.

Option (B).

45 ≠ 35 + 25

False.

Option (C).

100 ≠ 10 + 10

False.

Option (D).

1200 ≠ 40 + 30

False

Therefore, Option (A) shows the areas of three squares.

Is this function linear? Why or why not? PLEASE LOOK AT THE PHOTO!! I really need it right now:)​

Answers

Answer:

yes

Step-by-step explanation:

yes

yes, no x values or y values repeat

Answer plsssssssssssssss

Answers

Answer:

x^2

Step-by-step explanation:

This equation is basically x^(4-2), based on the properties of dividing exponents. so, if you simplify, you   get x^2

What is the image point of (9,4) after a translation left 5 units and up 1 unit?​

Answers

Answer:

(4,5)

Step-by-step explanation:

Other Questions
in and her brother each created a scale drawing of the backyard, but at different scales. Lin used a scale of 1 inch to 1 foot. Her brother used a scale of 1 inch to 1 yard. Express the scales for the drawings without units.Whose drawing is larger? Which of the following is not a part of the appendicular skeleton a. femurb. scapulac.phalangesd.hyoid Conversion FormulasK = C + 273 Which is a chemical property of oxygen?1.It reacts with iron to form rust. 2.It is a gas at room temperature. 3.It expands when heated. 4.It combines to form O 2 molecules. -2x+m=5dsolve for m. Could we represent every possible number with flippy do pro ? Beaty says, "if you dont want a man to be unhappy, dont give him two sides to a question to worry him. give him one. better yet, give him none. let him forget there is even a problem." In what way is he correct? Wrong? given the y-intercept of (0,19) and the slope of 2/3 write a linear equation what is the area of this parallelogram? guys i need huge help. this isnt a brainly question but i do my work online, and i have over 150 OVERDUE assignments. ive been doing them but its so so so hard to catch up and REPORT CARDS come out on tuesday. if i dont have my work completed by then ill have all fs HELP ME how can i catch up? any advice? :( Which details do the authors include to support theclaim in this passage? Select three options.an explanation of the results of the Seven Years' WarO an explanation of how the Molasses Act benefitedcolonistsan explanation of what was being taxed and howmuch it costan explanation of why the Americans smuggledmolassesan explanation of why the British imposed the SugarAct Jimmy's science textbook reflects blue light. What color is the book? 7. A 2kg block is acted on by two forces F1 and F2 as shown in the diagram. If the magnitude of F1 = 13N and F2 = 11N. If the coefficient of kinetic friction is .23, find (A) The normal force exerted on it by the floor. (2 pts) (B) The acceleration on of the block (2 pts) If you cut an apple into slices and leave them in the open air, they will slowlyturn brown. Is this a physical or chemical change? Explain *O Physical change, because it is still an apple, but it is cut into smaller pieces.Chemical change, exposure to air has caused the apple to turn color, indicatingsomething new. On June 12, Music, Incorporated sells $4,000 of goods on account to a credit customer with credit terms of 1/10, n/30. If the customer pays on June 20, select the correct entry to record the receipt of the customer's payment: Hanna puts $4,383 in a savings account with an annual interest rate of 5.2 percent for 3 years. Into which variable should she substitute 4,383 in the simple interest formula ? A phone has 5/8 of its battery charge left. If the battery loses 3/8 of its full charge every hour, how many hours will the battery last?PLSSSS HURRYY the water cylcle describes how water ? Plz help really need it. Which skill did the Chinese develop using cocoons found in mulberry trees?tea productiondye-makingwool spinningsilk-making