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

write the following ratio in their simplest form 25:75​

Answers

Answer:

1/3 :)

Step-by-step explanation:

Alexandria High School scored 37 points in a football game. Six points are awarded for each touchdown. After each
touchdown, the team can earn one point for the extra kick or two points for a 2-point conversion. The team scored one
fewer 2-point conversions than extra kicks. The team scored 10 times during the game. How many touchdowns were
made during the game? Write and solve a system of equations to get your answer.

Answers

Answer:

Five touchdowns were made in the game

Step-by-step explanation:

Here, we want to know the number of touchdowns made during the game.

We proceed as follows;

Let the number of touch downs be x

So the total points earned through touchdowns is 6 * x = 6x

The number of scores is 10 times

Let the number of extra kick be y which means that the number of conversions will be (y-1)

So the total number of score times will be ;

x + y + y-1 = 10

x + 2y = 11 •••••••••(i)

Now let’s work with points

Touch down points = 6 * x = 6x

Points from extra kick = 1 * y = y

Points from 2-point conversions = 2(y-1) = 2y - 2

So;

6x + y + 2y -2 = 37

6x + 3y = 37 + 2

6x + 3y = 39

divide through by 3

2x + y = 13 •••••••(ii)

So now solve simultaneously

From ii, y = 13 - 2x

Put this into i

x + 2(13-2x) = 11

x + 26 - 4x = 11

x -4x = 11-26

-3x = -15

x = -15/-3

x = 5

There are five touchdowns in the game

There are Five touchdowns were made during the game.

Here,

Alexandria High School scored 37 points in a football game. Six points are awarded for each touchdown.

After each touchdown, the team can earn one point for the extra kick or two points for a 2-point conversion.

The team scored one fewer 2-point conversions than extra kicks. The team scored 10 times during the game.

We want to know the number of touchdowns made during the game.

What is system of equations?

A system of equations is a collection of two or more equations with a same set of unknowns.

Now,

Let the number of touch downs be x

So, the total points earned through touchdowns is;

6 * x = 6x

The number of scores is 10 times

Let the number of extra kick be y which means that the number of conversions will be (y-1)

So, the total number of score times will be ;

x + y + y - 1 = 10

x + 2y = 11 •••••••••(i)

Now let’s work with points

Touch down points = 6 * x = 6x

Points from extra kick = 1 * y = y

Points from 2-point conversions = 2(y-1) = 2y - 2

Hence;

6x + y + 2y -2 = 37

6x + 3y = 37 + 2

6x + 3y = 39

divide through by 3

2x + y = 13 •••••••(ii)

So, now solve this;

From ( ii ), y = 13 - 2x

Put this into ( i )

x + 2(13-2x) = 11

x + 26 - 4x = 11

x -4x = 11-26

-3x = -15

x = -15/-3

x = 5

Hence, There are Five touchdowns were made during the game.

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a go-karts top speed is 607,200 feet per hour what is the speed in miles per hour

Answers

Answer:

115

Step-by-step explanation:

5280 feet/mile

607200/5280=115

:>

Answer: 115 mph

Convert ft to miles

Pls answer :(

I’ll appreciate!

Answers

Answer:

The answer would be 2.1 so it must be D

Step-by-step explanation: divide them

Which feature of the Earth is shown below and is created by farge amounts of in our core?

Answers

Answer:

C) Earth's Magnetic Field.

Step-by-step explanation:

Those lines are representing the magnetic pulls/fields that go around the Earth. Another clue that is given is the N and S, which represent North and South, which pertains to the north pole and south pole. These poles have a lot of magnetic fields around them.

Answer:

b MAntle convection currents

brainliest if right!!!

Answers

Answer:

The answer is Letter A.

Step-by-step explanation:

Find the value of x.

[tex]2x + 50 = x + 76 \\ 2x - x = 76 - 50 \\ x = 26[/tex]

Substitute x to the equation for angle 2.

[tex]2x + 50 \\ = 2(26) + 50 \\ = 52 + 50 \\ = 102[/tex]

#CarryOnLearning

Answer:

A) 102

Step-by-step explanation:

Alternative Exterior Theorem: If two parallel lines are cut by a transversal, then the pairs of alternative exterior angles are congruent.

Because of this theorem, we know that <2 and <8 are congruent, so we can set these equations to be equal to each other, like so:

2x + 50 = x + 76

Then, we need to find the x value, so solve from there.

2x + 50 = x + 76

x + 50 = 76   [Subtract x from both sides of the equal sign]

x = 26   [Subtract 50 from both sides of the equal sign]

So now that we have our x value, all we have to do is plug in that value to the <2 equation.

2x + 50

2(26) + 50

52 + 50

102

Hope this helps! I apologize if I get it incorrect,

Help please within the next hour

Answers

the second one!! hope this helped!

Answer:

its the second choice x=-1+[tex]\sqrt{17}[/tex]

Step-by-step explanation:


Select all the lines that have a slope of 5/2.
Click Image to Draw:
A. A
ΤΑ
B
I
В. В
C.C
D. D
E. E
Explain Your Reasoning:

Answers

Answer:

A rate of 5/2 means that:

If we move 2 units to the right, we move 5 units up.

Let's see all the graphs, the easier way to know this is:

In any point of the line, move to the right 2 units.

Then from that point, move up until you meet again with the line, if you moved 5 units, then the slope is 5/2.

A) The slope is 5/2.

B) The slope is 4/2

C) the slope is 5/2

I can not see very well graphs E and D in the image.

E) may have a slope of 5/2, you should measure it.

D has not a slope of 5/2,  you can compare it with A and see that is totally different, so you can discard option D.

Lines A and C are having a slope of (5/2) and line E may have the slope of (5/2).

Step-by-step explanation:

Given information:

Line A,B,C,D and E having different slopes;

Now as we know that equation of the line is:

[tex]y=mx+c[/tex]

where, m is the slope of the line

Now, Also [tex]dy/dx=m[/tex]

Hence, the slope of the line can also be calculated according to that.

Now, as given in the graph:

Line A is having [tex]dy=10\; \text {and} \; dx =4[/tex]

Hence slope of line A

[tex]dy/dx(A)=5/2[/tex]

Similarly:

Line B is having slope of (4/2)

Line C is having slope of (5/2)

Line D is not having slope of (5/2)

And Line E may have the slope of (5/2).

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What is the value of x

Answers

Answer:

A,   38

Step-by-step explanation:

the 180 - 114 = 66, so the vertical angle is 66, x = 38, 38 x 2 = 76 + 38 + 66 = 180

If the area of the base is 24 cm2, how would you
calculate the volume?
A V = 24h
B V = n(24)?h
CV = (24)
DV = (24)h

Answers

Answer:

AV and DV both are correct

Brainliest if you get right

Answers

Answer:

14y + -3

Step-by-step explanation:

9y + 5y = 14y

-3 = -3

14y + -3

Sienna is saving for an MP3 player that costs $200. She has $50 already saved in the bank and is going to save $25 each month.

Answers

Answer:

what's the question

Step-by-step explanation:

I guessing the question is how many months so I would say six because you divide 200. By 25 and get eight and since 50 is worth two months then you take away two from eight and you get 6

Identify ZABF by clicking and dragging the small yellow dots to shade the
angle.

Answers

Clearly it is 90 degrees angle

Solve for x.
y=(2 + x)m

Answers

Answer:

x = [tex]\frac{y-2m}{m}[/tex]

Step-by-step explanation:

Given

y = (2 + x)m ← distribute parenthesis by m

y = 2m + mx ( subtract 2m from both sides )

y - 2m = mx ( divide both sides by m )

[tex]\frac{y-2m}{m}[/tex] = x

help pls I'm not smart enough for this..​

Answers

Answer:

y = 1/2x, 2:1y = 5x, 1:5y= 1.5x, 16:24y = 3x, 1:3

Step-by-step explanation:

Number replaces with each corresponding value.

The number on the left is the x, and the number on the right of the colon is y.

Simply replace x and if you get the y, it is a match.

y = 1/2(2) = 1

y = 5(1) = 5

y = 1.5(16) = 16

y = 3(1) = 3

What is the value of the x-coordinate that is 9 units to the left of (4, -7)?

Answers

Answer:

-5

Step-by-step explanation:

Help plskekekekeesmmsmxmxmxx

Answers

Answer:

1.8 mile i think but do the math cz it should be.

PLEASE HELP WORTH 25 POINTS, find a and b.

Answers

Answer:

a = 12     b = 30

Step-by-step explanation:

A rectangle has a width of x + 2 and a length of 2x - 1, with an area of 42 inches squared. Find the perimeter of the rectangle

Answers

Answer:

26 inches

Step-by-step explanation:

Area of rectangle

= length ×width

= (2x -1)(x +2)

= 2x(x) +2(2x) -1(x) -2 (expand)

= 2x² +4x -x -2

= 2x² +3x -2

Given that the area is 42 inches squared,

2x² +3x -2= 42

2x² +3x -2 -42= 0 (-42 on both sides)

2x² +3x -44= 0 (simplify)

(x -4)(2x +11)= 0 (factorise)

x -4= 0 or 2x +11= 0

x= 4 or 2x= -11

x= -11/2 (*reject)

Length of rectangle

= 2(4) -1

= 8 -1

= 7 inches

Width of rectangle

= 4 +2

= 6 inches

Perimeter of rectangle

= 2(width +length)

= 2(7 +6)

= 2(13)

= 26 inches

*We reject x= -11/2 because the length and the width of the rectangle would be a negative number, which is not possible.

List the domain and range of each function (1,-4),(2,-3),(3,-2),(4,-1)

Answers

Answer:

Domain are all x values

Range are all y values

Domain:(1,2,3,4)

Range:(-4,-3,-2,-1)

Domain (1,2,3,4)
Range(-1,-2,-3,-4)

Sam made a 70% on his test. If there were 80 questions on the test, how many did he get right?

Answers

Answer: He got 56 questions right.

Step-by-step explanation:

Answer:

Sam got 56 questions correct.

Step-by-step explanation:

If there were 80 questions on the test, sam got 56 correct in order to get a 70%.

To find this, you must find 70 percent of 80 questions. You first must turn 70% into a decimal, making it 0.70. You multiply this decimal by the 80 questions on the test. You then get 56. Meaning they got 56 right. I hope this helps!

What are the x-intercepts of the graph of the function y=6tan (x/2)-3? Use your graphing calculator to estimate
the answer.

(0.9273 +17,0), where n is any integer

(0.9653 +12,0), where n is any integer

(0.9273 +2n7,0), where n is any integer

(0.9653 +217,0), where n is any integer

Answers

Answer:

C on edge

Step-by-step explanation:

The solution is, (0.9273 +2nπ,0), where n is any integer, are the x-intercepts of the graph of the function y=6tan (x/2)-3.

What is function?

Function, in mathematics, an expression, rule, or law that defines a relationship between one variable (the independent variable) and another variable.

here, we have,

given that,

the function is,

y=6tan (x/2)-3

we know that,

the x-intercepts of the graph of the function, we put y = 0

so, we get,

6tan (x/2)-3 = 0

or, tan (x/2) = 3/6

or, tan (x/2) = 1/2

or, x/2 = 0.4636

The period of tangent is π, so we have,

x/2 = 0.4636 + nπ

or, x =  (0.9273 +2nπ)

Hence, The solution is, (0.9273 +2nπ,0), where n is any integer, are the x-intercepts of the graph of the function y=6tan (x/2)-3.

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What is the answer?​

Answers

Answer:

A is parallel to B

Step-by-step explanation:

This means that the two lines will never touch

A is parrle to B (can’t spell but you know

Please help!!!
In 1/4 hour , A baker decorates 7/8 of a cake.

Answers

my geuss is c or d -i hope this helps

Someone help me please

Answers

Answer:

good luck

Step-by-step explanation:

Clark made four of his truck payments late and was fined four late fees the total change to his saving from late fees was -52 how much was one late fee

Answers

I am not sure but I think it's seven I actually don't know but I tried my best to figure it out I couldn't sorry

Write the point-slope form of the line that passes through (-8, 2) and is perpendicular to a line with a slope of -8. Include all of your work in your final answer. Type your answer in the box provided to submit your solution.

Answers

Answer:

y - 2 = 1/8(x+8)

Step-by-step explanation:

The slope of lines that are perpendicular are each other's opposite reciprocal.

so, the reciprocal of -8 = -1/8, then find the opposite of -1/8 which is 1/8.

Point-slope form : y - y1 = m(x - x1)

(x1,y1) = (-8,2)

so, y - 2 = 1/8(x+8) is our final answer!

GIVING BRAINIEST
what do I put in the box

Answers

Answer:

You actually have it right 9.

Step-by-step explanation:

I got a 100% on the quiz!

Mark me BRAINLIEST!!!

IF YOU GET THIS RIGHT (First )YOU GET BRAINLIEST AND FIVE STAR RATING AND THANKS

A cowboy rides to the town on Friday. Three days later, he leaves on Friday. How is this possible?

Answers

Answer:

The name of the horse is Friday.

Step-by-step explanation:

Cowboy and his Horse !

can someone help me find the values of y and z?

Answers

Answer:

y= 134.5 and z= 44.5 :)

Step-by-step explanation:

6z-87=180

6z=267

267/6=44.5

180-44.5=134.5

Answer:

y=99, z=81

Step-by-step explanation:

the angle above y is corresponding to 81, so if you substitute 81 in that place then it'll be angles on a straight line;

81 + y =180

(add like terms)

y =180 - 81

=99.

thus, y is 99. Once you do that, y and z are on a straight line so you solve for x using the formula for angles on a straight line;

y + (6z - 87)

(substitute y with 99)

99 + 6z - 87 =180

6z + 12 =180

(add like terms)

6z =180-12

6z =168

(divide both sides by six)

6z /6= 168/6

z = 28

(then you solve everything that was in the bracket for z)

(6z - 87)

(substitute z with 28)

=6 × 28 - 87

=168 - 87

=81

therefore, y =99 and z =81

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